You're buying in Ontario—Canada's largest real estate market and home to some of the country's highest prices. From Toronto's competitive condos to Ottawa's stable market to affordable opportunities in smaller cities, here's what Ontario buyers need to know.
Ontario Land Transfer Tax
Ontario charges land transfer tax on all property purchases:
Calculation:
| <p> | Value Portion | Tax Rate |
|---|---|---|
| Up to $55,000 | 0.5% | |
| $55,001 - $250,000 | 1.0% | |
| $250,001 - $400,000 | 1.5% | |
| $400,001 - $2,000,000 | 2.0% | |
| Over $2,000,000 | 2.5% | </p> |
Example for $700,000 home:
- First $55,000: $275
- $55,001 - $250,000: $1,950
- $250,001 - $400,000: $2,250
- $400,001 - $700,000: $6,000
- Total: $10,475
Use our Land Transfer Tax Calculator for your specific calculation.
First-Time Buyer Land Transfer Tax Rebate
First-time buyers get significant relief:
Maximum rebate: $4,000
Eligibility:
- Never owned property anywhere in the world
- You or your spouse will live in the home
- Must be a Canadian citizen or permanent resident
How it works:
- Full rebate on first $368,000 of purchase price
- Partial rebate for homes $368,001 - $500,000
- No rebate for homes over $500,000
Toronto Municipal Land Transfer Tax (Double Tax)
If you're buying in Toronto, you pay an additional municipal tax that mirrors provincial rates:
Toronto Additional Rates:
| <p> | Value Portion | Additional Tax |
|---|---|---|
| Up to $55,000 | 0.5% | |
| $55,001 - $250,000 | 1.0% | |
| $250,001 - $400,000 | 1.5% | |
| $400,001 - $2,000,000 | 2.0% | |
| Over $2,000,000 | 2.5% | </p> |
Toronto First-Time Buyer Rebate: Up to $4,475
Total Toronto first-time rebate: Up to $8,475 (provincial + municipal)
Ontario Regional Markets
Greater Toronto Area (GTA)
- Highest prices in Canada after Vancouver
- Very competitive in many segments
- Mix of detached, townhomes, condos
- Significant price variation by neighborhood
Ottawa
- Stable government-influenced market
- More affordable than GTA
- Strong rental demand (students, government workers)
- Growing tech sector
Hamilton/Burlington
- Traditionally more affordable than Toronto
- Significant appreciation in recent years
- Good commuter access to Toronto
- Growing urban development
London/Kitchener-Waterloo
- University towns with strong rental demand
- Tech hub in KW (Waterloo Region)
- More affordable entry points
- Growing investment opportunities
Northern Ontario
- Significantly more affordable
- Resource-based economies
- Different lifestyle considerations
- May have specific lender restrictions
Ontario-Specific Programs
FHSA (Federal, but relevant in Ontario)
First Home Savings Account:
- $8,000/year contribution (max $40,000 lifetime)
- Tax-deductible contributions
- Tax-free withdrawals for home purchase
- Works well with Ontario first-time rebates
RRSP Home Buyers' Plan
- Withdraw up to $35,000 from RRSP
- Combine with spouse for $70,000
- Repay over 15 years
- Available to qualifying first-time buyers
Closing Costs in Ontario
| <p> | Cost | Typical Amount |
|---|---|---|
| Land transfer tax | See calculations above | |
| Legal fees | $1,500 - $2,500 | |
| Title insurance | $300 - $500 | |
| Home inspection | $400 - $600 | |
| Moving costs | $500 - $2,000+ | </p> |
Budget 1.5% to 4% of purchase price for closing costs.
FAQ
Q: Is Toronto still worth buying in?
A: Depends on your goals, timeline, and alternatives. Toronto offers stability, appreciation potential, and liquidity—at a premium price.
Q: How do I avoid double land transfer tax?
A: Buy outside Toronto city limits. Many GTA suburbs (Markham, Mississauga, Brampton) don't have municipal tax.
Q: Are there grants for first-time buyers in Ontario?
A: Land transfer tax rebates (up to $4,000 provincial, $4,475 Toronto). No direct cash grants currently.
Q: What about new construction HST?
A: New homes include 13% HST (though builders often include it in price). Partial rebates available for principal residences.
Q: Can I buy as a non-resident in Ontario?
A: Currently yes, but the Non-Resident Speculation Tax (25%) applies to foreign buyers.
What's Next
Ontario's market offers opportunities at every price point. Get pre-approved to understand your options and navigate Ontario-specific costs and programs.
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