When any property in Ontario is changed hands there is a Land Transfer Tax payable.  This might come to a surprise to many people as they are not aware of it.  This tax is payable by the BUYER of the home or property, never the seller.  This tax is payable on the closing day, the day which the transfer of title is completed by your lawyer.  If the property is located in Toronto, there is an additional Toronto Land Transfer Tax to be paid (I know it sucks).  Most of the time, this tax can be added to your mortgage and will be payable in monthly installments.

Ontario Land Transfer Tax Rates

Purchase price of home Land title transfer fee First-time homebuyer rebate
Up to and including $55,000 0.5% Full tax rebate
$55,000.01 to $250,000.00 1.0% Full tax rebate
$250,000.01 to $368,333 1.5% Full tax rebate
$368,334 to $400,000.00 1.5% $4,000 tax rebate
$400,000.00 to $2,000,000.00 2.0% $4,000 tax rebate
Over $2,000,000.00 2.5% $4,000 tax rebate

Toronto Land Transfer Tax Rates

Purchase price of home Land title transfer fee First-time homebuyer rebate
Up to and including $55,000 0.5% Full tax rebate
$55,000.01 to $250,000.00 1.0% Full tax rebate
$250,000.01 up to and including $400,000.00 1.5% Full tax rebate
$400,000.01 up to and including $2,000,000.00 2.0% $4,475 maximum tax rebate
Over $2,000,000 2.5% $4,475 maximum tax rebate

To calculate your land transfer tax use my calculator here.

First Time Homebuyer Rebate

There is great news however, if you are a first-time homebuyer you can qualify for up to a $4000 credit.  The government sets out the requirements for this rebate.  You can find all the information here.

Keep in mind when deciding to purchase a home, you will need to budget for the land transfer taxes.