Ontario First-Time Buyer Land Transfer Tax Refund Explained
First-Time Buyers · Sarnia-Lambton · Hamilton · Updated November 2026
Ontario First-Time Buyer Land Transfer Tax Refund, Explained
If you've never owned a home anywhere in the world, Ontario will refund up to $4,000 of the land transfer tax you pay on your first home. That covers the whole tax on a home up to about $368,000. On a more expensive home, you get $4,000 off and pay the rest.
Here's who qualifies, what you'll actually pay on a Sarnia or Hamilton home, and how to claim it.
Up to $4,000
Maximum refund
$0 tax
On homes up to about $368,000
Claimed at closing
Your lawyer handles it
What Is Land Transfer Tax?
Land transfer tax is a one-time provincial tax you pay on closing day when you buy a home in Ontario. It's based on the purchase price and charged in brackets.
Sarnia, Lambton County and Hamilton buyers pay only the provincial tax. The extra municipal land transfer tax applies only in the City of Toronto.
Ontario tax brackets
10.5% on the first $55,000
21.0% from $55,000 to $250,000
31.5% from $250,000 to $400,000
42.0% from $400,000 to $2,000,000
52.5% above $2,000,000
How Much Will I Actually Pay?
What a first-time buyer pays at common Sarnia-Lambton and Hamilton price points.
To work out your own number, use my land transfer tax calculator.
Who Qualifies?
✓ You're at least 18.
✓ You've never owned a home, or an interest in a home, anywhere in the world.
✓ If you have a spouse, they haven't owned a home anywhere while they were your spouse.
✓ You're a Canadian citizen or permanent resident.
✓ You move in as your main residence within 9 months.
Buying With Someone Else?
You and a spouse who've both never owned: full refund, up to $4,000.
Your spouse owned a home while you were together: no refund for either of you.
Buying with a parent who already owns: you get a refund in proportion to your share. At 50/50, that's up to $2,000.
How Do I Claim It?
Usually you don't have to do anything yourself. Your real estate lawyer claims the refund when they register the purchase on closing, so it comes straight off the tax you owe that day.
If it isn't claimed at closing, you can apply to the Ontario Ministry of Finance within 18 months of the purchase.
Stack it with
✓Lower down payment: 5% of the first $500,000 and 10% of the part above that. On a $400,000 home, that's $20,000.
✓30-year amortization: first-time buyers can take a 30-year insured mortgage for a lower monthly payment.
✓RRSP Home Buyers' Plan: withdraw up to $60,000 for your down payment.
✓First Home Savings Account: tax-free savings for your first home.
Buying Your First Home?
First-time buyers are the core of my business. I'll walk you through the real costs before you start looking, so closing day has no surprises. Sarnia-Lambton or Hamilton.
Call or text 519-381-7975Chris Lewis, Sales Representative, Coldwell Banker Southwest Realty, Brokerage. This page is general information, not legal or tax advice. Confirm eligibility with your real estate lawyer. Source: Ontario Ministry of Finance.
