Land Transfer Tax Rebates for First-Time Homeowner Spouses

For first-time homebuyers, there is often some confusion as to what their eligibility is for the Land Transfer Tax rebates offered by the Province and Municipality of Toronto.  In particular, where one spouse has owned a home before, many couples assume (or are incorrectly advised) that neither spouse would be eligible for a rebate.  This is not necessarily true.

In Ontario, where one spouse who is not a first-time homeowner and the other spouse who is a first-time homeowner purchase a home together, the first-time homeowner spouse may apply for the full Land Transfer Tax rebate, provided the other spouse sold his or her interests in all homes prior to becoming spouses with the first-time homeowner.It is important to note that this eligibility for a rebate does not extend to non-spouses purchasing a home together.  For example, where a parent and child purchase a home together, and the parent has previously owned a home, the first-time homeowner child’s eligibility for a rebate would be limited to his or her proportionate share of ownership in the home.