Money Back at Closing & Tax Time
First-Time Buyer Tax Refunds & Rebates
Buying your first home in Ontario unlocks money you can claim back — up to $4,000 off the Land Transfer Tax and a $1,500 federal tax credit. Here is what each one is worth and how to make sure you get it.
Ontario Land Transfer Tax refund — up to $4,000
Every home purchase in Ontario triggers Land Transfer Tax, a percentage of the purchase price paid at closing. For first-time buyers, the Province offers a refund of up to $4,000. In practice that wipes out the provincial land transfer tax entirely on homes priced up to about $368,000, and takes a meaningful bite out of it on higher-priced homes. The best part: your real estate lawyer usually applies the refund directly at closing, so you simply pay less rather than waiting for a cheque.
Federal First-Time Home Buyer Tax Credit — $1,500
On top of the provincial refund, the federal government offers the Home Buyers’ Amount, a non-refundable tax credit worth $1,500 to eligible first-time buyers. You claim it on your income tax return for the year you purchased, where it reduces the tax you owe. It is one of the easiest credits to miss simply because it happens months after closing — so put a reminder in place the moment you get the keys.
Combine them with everything else
These refunds are on top of, not instead of, the down payment help available to you. Pair them with a Welcome Home Niagara forgivable loan and tax-free savings through the FHSA and Home Buyers’ Plan to stretch your budget further. If you are buying new construction, do not miss the new-home HST rebate. When you are ready, browse Niagara homes under $500K to find one where the land transfer tax refund covers the full bill.
Frequently asked questions
What is the Ontario Land Transfer Tax refund for first-time buyers?
When you buy a home in Ontario you pay Land Transfer Tax based on the price. Eligible first-time buyers can receive a refund of up to $4,000, which effectively eliminates the provincial land transfer tax on homes up to roughly $368,000 and reduces it on more expensive homes. The refund is usually applied right at closing by your lawyer.
What is the First-Time Home Buyer Tax Credit?
It is a federal, non-refundable tax credit (the Home Buyers' Amount) worth $1,500 to eligible first-time buyers. You claim it on your income tax return for the year you bought your home — it reduces the tax you owe rather than coming as a cheque.
How much can I get in total?
Combined, an eligible Ontario first-time buyer can receive up to $4,000 from the Land Transfer Tax refund plus the $1,500 federal credit. If you buy in a municipality with its own land transfer tax, additional municipal rebates may also apply, but those do not apply to most Niagara Region purchases.
Who qualifies as a first-time buyer for these refunds?
Generally you must never have owned a home anywhere in the world, and the home must become your principal residence within a set period after closing. For the Ontario refund, if you have a spouse, their ownership history is also considered. Confirm the current eligibility rules with the Province of Ontario and the Canada Revenue Agency.
Do I have to apply separately for each one?
The Land Transfer Tax refund is typically handled by your real estate lawyer at closing, so you receive it immediately. The federal tax credit is claimed by you (or your accountant) on your tax return for the year of purchase.
This page is general information from Davids & DeLaat, REMAX Niagara Realty Ltd., and is not tax or legal advice. The Land Transfer Tax refund is administered by the Province of Ontario and the First-Time Home Buyer Tax Credit by the Canada Revenue Agency; amounts and eligibility can change. Confirm current details with the Province, the CRA, your lawyer or a qualified professional before relying on them.
Talk to a local agent
Make sure you claim every dollar
We will walk you through the refunds and credits you qualify for and connect you with the right professionals — then help you find your first Niagara home.
Prefer to talk it through? Call the team or send a message.
Explore other buyer resources
Keep planning your first purchase with these related guides and live Niagara searches.
- Full Down Payment Programs Overview — compare every program
- DPAP Hamilton — for buyers considering Hamilton instead
- Ontario New-Home HST Rebate 2026 guide
- Get pre-approved for a mortgage — the required first step
- Niagara homes under $500K — matches the 5% down threshold
- Newly built Niagara homes — candidates for the HST rebate
- Set up an automated buying agent — instant new-listing alerts
- Buying with Davids & DeLaat — how our team makes it easy