In order to qualify for the First Time Home Buyers Land Transfer Credit (FTHB Credit), a purchaser must: 

  • Be at least 18 years of age;
  • The Application for the refund must be made within 18 months after the date of the purchase or conveyance of the property.  Mister Real Estate Lawyer always advises to complete the application at the time of closing so that our clients receive an immediate rebate;
  • The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing;
  • The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world;
  • A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse.

NOTE: The eligibility applies to BOTH newly constructed homes/condos and resale homes.

Further details can be found the the Government of Ontario’s website.
1) What if one of the home buyers is not a first time home buyer?

Typically, if one of the purchasers has previously owned an eligible home anywhere else in the world, that purchaser (who owned a home) is not eligible to receive a refund. There is an exception in respect of spouses (see below).

EXAMPLE 1:  A parent who is not a first-time home purchaser and child who is a first-time home purchaser, purchase a home with equal 50/50 interests, the son may claim 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund. i.e.: 50% of $2000.00 = $1,000.00.

2) Spousal Exceptions to obtian the First Time Home Buyer Credit

However, if a couple is married, your spouse cannot have owned an eligible home, or an interest in an eligible home, anywhere in the world while being your spouse in order for you to obtain the FHTB Credit. If you get married and your spouse owns a house at the time of the marriage, then the spouse who has never owned a home loses their FTHB Credit.

EXAMPLE 2: A couple is engaged to be married on the 1st of June of this year, (the marriage date) entered into an agreement to purchase a new home. One of the purchasers had previously owned an eligible home in Canada (which was sold to buy the new home). The other purchaser is eligible for the FTHB Credit.

RESULT 2A: If the couple married before the purchase or conveyance of the home (i.e. the deal closed on or after 1st of June or later), then the eligible purchaser loses their FTHB Credit.

RESULT 2B: If the couple married after the purchase or conveyance of the home (i.e. the deal closed on or before 31st of May or sooner) the the eligible purchaser would receive its proportionate share of the FTHB Credit.

THERE IS AN EXCEPTION:

RESULT 2C:  Fiancé owns a home and sells it. The couple lives elsewhere (e.g. rents) and buys a home after the marriage date, the Fiancée is entitled to the FTHB Credit for BOTH spouses (the Fiancé and the Fiancée).