Buying your first home in Cambridge is exciting, but closing costs can surprise you. One of the biggest is Ontario’s Land Transfer Tax. The good news is that many first-time buyers qualify for a refund worth up to $4,000. In this guide, you’ll learn what the tax is, who qualifies, how to claim your refund, and exactly what to prepare for a smooth closing in Cambridge. Let’s dive in.
What is Ontario’s Land Transfer Tax?
Ontario charges a provincial Land Transfer Tax (LTT) when your home is registered. The tax is based on price bands that increase with your purchase price.
- Up to $55,000: 0.5%
- $55,000.01 to $250,000: 1.0%
- $250,000.01 to $400,000: 1.5%
- Over $400,000: 2.0% (with an additional top rate for some single family residences over $2,000,000)
You can review the current brackets and formulas on Ontario’s page for calculating land transfer tax. See the LTT rate bands and examples.
The first-time buyer refund at a glance
Ontario offers a first-time homebuyer refund of up to $4,000. For qualifying buyers, this effectively covers the provincial LTT on the first $368,000 of your purchase price. For homes above that amount, the refund caps at $4,000. Learn more about the first-time buyer refund.
Quick examples
- $350,000 purchase: estimated provincial LTT ≈ $3,725. The refund would fully cover it, so your net provincial LTT would be $0.
- $500,000 purchase: estimated provincial LTT ≈ $4,475. The refund caps at $4,000, so you would pay about $475.
Work with your real estate lawyer to confirm your actual amount at closing.
Who qualifies in Ontario
To qualify for the provincial refund, you must meet several rules.
- You are at least 18 and you will occupy the home as your principal residence within nine months of transfer.
- You have never owned an eligible home or an interest in one anywhere in the world. You cannot re-qualify later.
- If you have a spouse, they must also meet the “never owned while spouses” rule. If your spouse owned a home while you were spouses, neither of you is eligible.
- For registrations on or after Jan 1, 2017, you must be a Canadian citizen or permanent resident. If you obtain status within 18 months after registration, you can apply within that window.
- If more than one person is on title and only some qualify, the refund is proportional to the qualifying owner’s share.
Find full eligibility details on Ontario’s refund page. Review first-time buyer eligibility and limits.
Cambridge specifics to know
You do not pay a municipal land transfer tax in Cambridge. Only the City of Toronto charges a separate municipal LTT on top of the provincial tax. Confirm municipal LTT details on Ontario’s overview.
If at least one buyer is a foreign national, foreign corporation, or taxable trustee, Ontario’s Non-Resident Speculation Tax (NRST) may apply. The province currently lists the NRST rate at 25% for most transactions, with certain transitional rules for older agreements. NRST is in addition to the provincial LTT. Read the NRST guidance for rates and exemptions.
How and when to claim your refund
The easiest path is to claim the refund at registration so it reduces the tax due at closing.
- Electronic registration: Your lawyer selects the prescribed LTT electronic statements during registration. When done this way, you do not need a separate paper affidavit. See the practitioner guide to electronic registration.
- If not claimed at registration: You pay the full LTT at closing, then apply to the Ministry of Finance for a refund. You can use the ministry’s online services portal listed on the refund page. How to apply for a refund after closing.
Important: You must apply within 18 months after the date of registration.
Documents to prepare
Have copies ready to support your claim. The Ministry may audit your file, so keep everything in one place.
- Registered transfer/deed showing LTT paid
- Agreement of Purchase and Sale with all schedules and amendments
- Statement of Adjustments
- Proof of occupancy showing your new address, such as a driver’s licence, internet or cable bills, bank or credit card statements, moving invoices, car insurance, or purchase receipts
- Proof of Canadian citizenship or permanent residency (front and back)
Note: Utility bills and home insurance documents are not accepted as proof of occupancy for this refund.
Quick checklist for Cambridge first-time buyers
- Confirm you meet the “first-time” definition and spouse rules.
- Confirm your citizenship or PR status. If you will obtain status after closing, note the 18-month window to apply.
- Ask your lawyer to claim the refund during electronic registration so you do not wait for reimbursement.
- Gather documents for your file and include acceptable proof of occupancy.
- If any buyer is a foreign national, discuss NRST exposure, exemptions, or rebates with your lawyer early.
- If you miss claiming at registration, apply to the Ministry of Finance within 18 months and consider direct deposit for faster payment.
Common pitfalls to avoid
- Missing the 18-month application deadline after closing
- Not moving in within nine months as a principal residence
- Adding a non-qualifying co-buyer and expecting a full refund when only a partial refund applies
- Submitting the wrong proof of occupancy
- Overlooking NRST if a buyer is a foreign national
You deserve a first home purchase that feels clear and well planned. If you are buying in Cambridge and want help mapping your closing costs and timelines, connect with Linda Fernandes Real Estate for personal, step-by-step guidance.
FAQs
Do Cambridge buyers pay a municipal land transfer tax in addition to Ontario’s LTT?
- No. Only the City of Toronto charges a municipal LTT. Buyers in Cambridge pay the provincial LTT only. See Ontario’s LTT overview.
How much can a first-time buyer in Ontario save with the LTT refund?
- You can receive up to $4,000, which covers the provincial LTT on the first $368,000 of your purchase price. Amounts above that are taxed normally. Review refund details.
Can I qualify for the refund if my spouse previously owned a home?
- If your spouse owned a home while you were spouses, neither of you is eligible. If a non-spouse co-buyer previously owned a home, your refund may be proportional to your eligible share.
I am a temporary resident buying in Cambridge. Can I claim the refund?
- For registrations on or after Jan 1, 2017, you must be a Canadian citizen or permanent resident. If you obtain status within 18 months after registration, you can apply within that window. Check eligibility rules.
How do I claim the refund after closing if I did not apply at registration?
- Pay the LTT at closing, then submit a refund application to the Ministry of Finance through the online services portal referenced on the refund page, along with supporting documents. How to apply.
Does the Non-Resident Speculation Tax affect first-time buyers in Cambridge?
- It can if at least one buyer is a foreign national, foreign corporation, or taxable trustee. NRST is separate from LTT and may apply at 25%, subject to provincial rules and any exemptions. Read NRST guidance.
