Question 1

When is land transfer tax paid?

Accepted Answer

Land transfer tax is paid at closing, the day ownership officially transfers to you. Your lawyer or notary collects the funds as part of closing costs and remits them to the province (or municipality, in Toronto and Quebec). The tax is fully due at closing in every province except Quebec, where the welcome tax is billed by the municipality after closing, sometimes several months later.

Question 2

Can I roll land transfer tax into my mortgage?

Accepted Answer

Generally no. Land transfer tax is a cash-at-closing requirement and cannot be financed inside the mortgage. You must have the funds available in your bank account on closing day, in addition to your down payment, legal fees, title insurance, and property-tax adjustments. Some lenders allow you to borrow against an unsecured line of credit, but that adds interest cost on top of the tax itself.

Question 3

How does Toronto's Municipal Land Transfer Tax work?

Accepted Answer

Toronto layers a Municipal Land Transfer Tax (MLTT) on top of the Ontario provincial LTT. The MLTT uses the same bracket structure as the provincial tax up to $3 million, then applies enhanced rates above that (3.5% to 7.5% on the portion above $3M). For most homes under $3M, buying in Toronto effectively doubles the LTT bill. Both rebates apply for first-time buyers: $4,000 provincial plus $4,475 municipal.

Question 4

What is the Quebec welcome tax (taxe de bienvenue)?

Accepted Answer

Quebec uses a municipal welcome tax (droits de mutation immobilière, popularly called the taxe de bienvenue after the legislator Jean Bienvenue, not because anyone is welcoming you). It is billed by the municipality usually within 3 to 6 months after closing, separate from your notary statement. The base brackets are 0.5%, 1.0%, and 1.5% province-wide, with higher upper-tier rates in Montreal and a handful of larger cities. Budget for it in advance, since the surprise bill catches many buyers off guard.

Question 5

Which first-time home buyer rebates are available?

Accepted Answer

Ontario refunds up to $4,000 of provincial LTT for first-time buyers, fully eliminating the tax on homes up to about $368,000. Toronto adds a separate $4,475 MLTT rebate. British Columbia grants a full Property Transfer Tax exemption on first homes up to $500,000 and partial relief up to $835,000. Quebec offers no automatic provincial rebate. Alberta and Saskatchewan have no LTT to rebate. To qualify, you generally must not have owned a home anywhere in the world in the past 4 years.

Question 6

Why does Alberta have no land transfer tax?

Accepted Answer

Alberta and Saskatchewan never enacted a provincial land transfer tax. Buyers pay only the land titles office registration fee, which is a small flat amount plus a tiny percentage of the property value (about $50 base plus 0.02% in Alberta). On a $500,000 home, that is roughly $160 versus thousands of dollars elsewhere. This is one of several historical tax advantages Alberta still has versus Ontario, BC, or Quebec.

Question 7

Can I get the LTT refunded if the deal falls through?

Accepted Answer

Generally no. Once paid at closing, land transfer tax is not refundable even if the deal is later rescinded or you sell the property soon after. You may be eligible for a partial refund only in narrow circumstances: a buyer rebate program (first-time buyer) you forgot to claim at closing can usually be backdated within 18 months, and some provinces refund the tax if the transfer is rescinded before registration. Always confirm rebate eligibility with your lawyer before closing.

Question 8

Does land transfer tax apply to a new build from a builder?

Accepted Answer

Yes. Land transfer tax applies to almost every transfer of land in the province, regardless of whether you buy from a private seller, a builder, or in a power-of-sale. New builds in some markets (notably Toronto and Vancouver) attract additional levies such as the Vancouver Empty Homes Tax or the federal Underused Housing Tax for non-residents. The bracketed LTT itself is the same whether the property is resale or pre-construction.

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