Ontario · First-Time Buyer Guide

Buying your first home
in Ontario.

Ontario is Canada's largest housing market — and one of the most expensive. Understanding land transfer tax, the Toronto double-tax, closing costs, and the stress test is essential before you make any offers. Here's everything Ontario-specific you need to know.

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turningkeys.ca / Ontario
$4,000Max provincial LTT rebate (FTB)
$4,475Max Toronto MLTT rebate (FTB)
2–4%Typical closing costs in ON

Ontario Land Transfer Tax — and how the first-time buyer rebate works

Ontario charges a Land Transfer Tax (LTT) on all home purchases based on the purchase price. For most Ontario buyers, this is the single largest closing cost beyond the down payment. The rates are marginal — meaning different portions of the price are taxed at different rates.

Purchase price portionTax rate
Up to $55,0000.5%
$55,001 to $250,0001.0%
$250,001 to $400,0001.5%
$400,001 to $2,000,0002.0%
Over $2,000,0002.5%

On a $700,000 home, the Ontario LTT is approximately $11,475. First-time buyers receive a rebate of up to $4,000 — reducing the net LTT to approximately $7,475. You must be a Canadian citizen or permanent resident, have never owned a home anywhere in the world, and occupy the home as your principal residence.

Buying in Toronto? There's a second land transfer tax.

The City of Toronto charges an additional Municipal Land Transfer Tax (MLTT) on top of the provincial LTT. The MLTT rates mirror the provincial rates. First-time buyers in the City of Toronto receive an additional rebate of up to $4,475 on the MLTT. On a $700,000 purchase in Toronto, the combined LTT (after both first-time buyer rebates) is approximately $14,950. This is significantly more than the same purchase in Mississauga or Brampton, which have no MLTT.

The Stress Test and Ontario's High Prices

The federal mortgage stress test applies to all Ontario buyers. You must qualify at the higher of your actual rate plus 2%, or 5.25%. Given that average prices in the Greater Toronto Area regularly exceed $1,000,000 — and Ontario-wide averages are above $865,000 — many first-time buyers find the stress test severely limits their qualifying amount relative to market prices.

Ontario first-time buyers and new construction buyers can now use a 30-year amortization (as of August 2024), which reduces monthly payments and increases qualifying amounts. If you're stretching to buy in a high-cost Ontario market, this rule change may meaningfully affect what you can qualify for — ask your mortgage broker specifically about your eligibility.

Condo vs. freehold in Ontario

Ontario's entry-level market is heavily condos — particularly in Toronto and surrounding areas. Condos in Ontario are governed by the Condominium Act. Before purchasing, review the Status Certificate (a standardized document that discloses the corporation's financial health, reserve fund, pending special assessments, and any current or anticipated litigation). Your lawyer will review this during the conditions period — allow time for it.

FHSA + RRSP Home Buyers' Plan in Ontario

Ontario buyers have access to both the federal First Home Savings Account (up to $8,000/year, $40,000 lifetime, tax-deductible contributions, tax-free withdrawals) and the RRSP Home Buyers' Plan (withdraw up to $60,000 from your RRSP tax-free for a first home purchase). Together, these two programs can provide significant tax-advantaged capital toward a down payment in one of Canada's most challenging markets.

Frequently Asked Questions — Ontario First-Time Buyers

What is a Status Certificate and do I need one?
A Status Certificate is a mandatory disclosure document for Ontario condo purchases. It contains the condo corporation's financial statements, reserve fund balance, any outstanding liens or legal actions, the current declaration and bylaws, and information on any pending special assessments. Your offer should be conditional on satisfactory review of the Status Certificate. Your lawyer reviews it — typically within 10 business days of receiving it from the condo corporation.
How do land transfer taxes affect my total closing costs in Ontario?
For a first-time buyer purchasing a $750,000 home in Ontario (outside Toronto), after the $4,000 provincial LTT rebate, you'd still owe approximately $8,475 in LTT plus legal fees, title insurance, home inspection, and property adjustments. Total closing costs typically run 2–3% of the purchase price. In Toronto (with both LTT and MLTT), budget 2.5–4% even after the first-time buyer rebates.
Is there a first-time buyer program specific to Ontario?
The provincial LTT rebate (up to $4,000) and the Toronto MLTT rebate (up to $4,475 for City of Toronto purchases) are the primary Ontario-specific programs. Ontario also participates in all federal programs: FHSA, RRSP Home Buyers' Plan, and the First-Time Home Buyers' Tax Credit (up to $1,500 back on your federal taxes).
What's the difference between a buyer's agent and a listing agent in Ontario?
In Ontario, the listing agent represents the seller. A buyer's agent represents you. You should always have your own buyer's agent — someone whose sole obligation is to your interests. If you deal directly with the listing agent, that agent is typically in a conflict of interest position called "multiple representation." RECO (the Real Estate Council of Ontario) requires written disclosure and consent for multiple representation, but it's generally advisable to have your own independent representation.

Ready to go deeper?

The free Turning Keys program covers every step of the Ontario homebuying process in detail — credit, down payments, the stress test, land transfer tax, condo due diligence, and the full purchase process from offer to keys.

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