Do you pay land transfer tax twice in Toronto?

Yes. Inside the City of Toronto a buyer pays both the provincial Ontario land transfer tax and the Toronto municipal land transfer tax. In Mississauga, Brampton, Vaughan and Caledon only the provincial tax applies. It is payable in cash on closing and cannot be added to the mortgage.

How much land transfer tax can a first-time buyer claim back in Toronto?

Up to $4,000 against the provincial tax, meaning none is payable on the first $368,000 of value, plus up to a further $4,475 against the Toronto municipal land transfer tax. To qualify the purchaser must never have owned a home or an interest in one anywhere in the world, and a married purchaser's spouse must not have owned one during the marriage. The home must become the principal residence within nine months and the claim has an eighteen-month deadline.

What is the Toronto Vacant Home Tax and who pays it?

It is a tax of 3% of a property's current value assessment on residential property left vacant for six months or more in a taxation year, applying from the 2024 taxation year. Every residential property owner must file an annual occupancy declaration, and a property whose owner fails to declare is deemed vacant and taxed. It most often affects second properties, inherited homes, properties held during renovation, and investment units not yet tenanted.

Can a Toronto condo purchase be declined because of the building?

Yes. A weak reserve fund, ongoing litigation, a special assessment, a very small unit size, or a building with a high proportion of rental or short-term-rental units can each narrow or close the lender list regardless of the borrower's strength. These should be checked before making an offer rather than during a short condition period.

Mortgage broker · Toronto

Mortgage broker in Toronto

Q: What changes when a Toronto purchase is over $1.5 million?

Mortgage loan insurance is not available at $1.5 million or more, so the minimum down payment is 20% and the mortgage is conventional rather than insured. Below that threshold the minimums are 5% on the first $500,000 and 10% on the portion above it.

Downtown, North York, Scarborough, Etobicoke, East York. Toronto has one financing fact that no other city in Ontario has — and it costs money on the day you close.

Talk it through — free Read the answers first

The direct answer

Buy inside the City of Toronto and you pay land transfer tax twice — once to Ontario and again to the city. It is the single biggest local financing difference in the province, it is payable in cash on closing day, and it cannot be added to the mortgage. First-time buyers can claim up to $4,000 back provincially and up to a further $4,475 municipally, but the eligibility rules are stricter than most people assume. Work out the closing number before you make an offer, not after.

THE SHORT VERSION

Two land transfer taxes inside the city boundary — step outside it and there is one
Rebates up to $4,000 + $4,475 for genuine first-time buyers
A 3% Vacant Home Tax applies to properties left vacant, and the declaration is mandatory
More of this market sits above $1.5 million, where mortgage insurance is not available
Condo financing turns on the building, not just on you

The double land transfer tax

The City of Toronto levies its own municipal land transfer tax on top of the provincial one. Nowhere else in the GTA does this. A property in Etobicoke and one across the border in Mississauga, at the same price, do not cost the same to close.

It is not a small difference and it is not financeable. Your lawyer needs it in cash, on the day.

The rebates, and the trap in them

Genuine first-time buyers can claim up to $4,000 against the Ontario tax — which means no provincial land transfer tax at all on the first $368,000 of value — and up to a further $4,475 against the Toronto municipal tax.

The part nobody tells you. “First-time buyer” is stricter than it sounds. You cannot have owned a home, or any interest in one, anywhere in the world, at any time. Not recently — ever.

And if you are married, your spouse cannot have owned one during the marriage either. That single clause disqualifies a lot of couples who assumed only the applicant mattered — particularly where one partner owned property before arriving in Canada.

The property also has to become your principal residence within nine months, and the claim has an eighteen-month deadline. Ask your lawyer to confirm eligibility before you budget around the rebate.

The full closing-cost picture →

The Vacant Home Tax

Toronto charges a Vacant Home Tax of 3% of a property’s current value assessment where a residential property is vacant for six months or more in a year. It applies from the 2024 taxation year onward.

The declaration is the part that catches people. Every residential owner must declare each year whether the property is occupied, vacant, or vacant with an exemption. A property whose owner does not declare is deemed vacant — and taxed accordingly.

This matters most on second properties, inherited homes, properties held during a renovation, and units bought as investments and not yet tenanted. If you are financing any of those in Toronto, the annual declaration belongs on your calendar.

Rates, exemptions and declaration deadlines are set by the City of Toronto and change. Confirm the current year’s requirement with the city or your lawyer.

Condo financing turns on the building

More of Toronto’s market is condominium than anywhere else in Ontario, and a condo mortgage is underwritten on two things: you, and the building.

Fifty per cent of the monthly fee is counted in your debt service ratios, so a high-fee unit approves for a smaller mortgage than an identical low-fee one
The status certificate matters to the lender, not just to your lawyer — a weak reserve fund, litigation or a special assessment can affect financing
Very small units narrow the lender list, sometimes sharply
Buildings with a high proportion of rentals, or run on a hotel or short-term-rental model, are harder again

All of that is knowable before you offer. Discovering it during a condition period, in a market where conditions are often short, is how deals fall apart.

Above the insured cap

Toronto prices push more files past the point where mortgage insurance is available.

At $1.5 million and over there is no insured option. The minimum down payment is 20%, the mortgage is conventional, and the qualification path is different. Below that, the tiers are 5% on the first $500,000 and 10% on the portion above it.

Crossing that line changes the deal, and it is worth knowing which side of it you are shopping on before you start.

Buying from outside Canada

Toronto adds a municipal non-resident speculation tax on top of Ontario’s provincial one. Non-resident buyers face a materially different cost base here than in the surrounding regions, and the federal prohibition has its own timeline.

The non-residents centre covers all of it → — including what changes on 1 January 2027, and the CRA holdback that catches non-resident sellers.

Across the city

What comes up, by district

The financing characteristic that tends to matter in each — not a neighbourhood guide.

Downtown & Waterfront

Condo territory, and the building decides as much as you do. Small units, high fees, rental-heavy towers and short-term-rental buildings each narrow the lender list before your income is even discussed.

Why the calculator overstates →

North York

Wide price spread and a lot of custom rebuilds. Appraisals vary more than people expect on streets where an original bungalow sits next to a new build — and a low appraisal is a cash problem, not a mortgage one.

Appraisals, and who pays →

Scarborough

More entry-level stock, and a lot of multi-generational and secondary-suite purchases. Whether rental or basement income counts — and how much of it — depends on the lender and on whether the suite is legal.

Does rent help me qualify? →

Etobicoke

The border matters here. Cross into Mississauga and the municipal land transfer tax disappears. Same price, meaningfully different cash at closing — and it is worth knowing which side of the line a listing sits on.

What closing actually costs →

East York & the East End

Older housing stock, frequently renovated. Age, additions and past work show up in the appraisal and occasionally in the insurance requirement — knob-and-tube and older services are still found here.

How much equity you can reach →

Midtown & the central west

Frequently above the insured cap. At $1.5 million and over there is no mortgage insurance, the minimum is 20% down, and the qualification path changes entirely.

What existing debt really costs you →

Open the answer library

What I do for Toronto clients

First-time buyers and pre-approvals — including condo purchases
Refinancing, renewals and debt consolidation
Investment and rental property, including multi-unit
Self-employed, commission and variable income
New to Canada, non-resident purchases and credit rebuilding
Private and second mortgages, commercial and reverse mortgages

Checking I’m real

Entirely reasonable, and all of it is verifiable without my help:

Over 100 Google reviews, plus verified client ratings on Rate-My-Agent — all of them are here
Listed among the Top 3 Mortgage Brokers in Brampton by ThreeBestRated — a selection I didn’t pay for and can’t edit
FSRA — Mortgage Architects, Brokerage Licence #12728
A real office — 15 Gateway Blvd, Unit 201-4, Brampton, ON L6T 0G3. I work across Toronto in person, by phone and online

Local questions

Toronto mortgage FAQ

Do I really pay land transfer tax twice in Toronto?

Yes. Inside the City of Toronto you pay the provincial Ontario land transfer tax and the Toronto municipal land transfer tax. Buy the same-priced property in Mississauga, Brampton, Vaughan or Caledon and only the provincial tax applies. It is payable in cash on closing and cannot be added to the mortgage.

How much can a first-time buyer claim back?

Up to $4,000 against the provincial tax — meaning none is payable on the first $368,000 of value — and up to a further $4,475 against the Toronto municipal tax. The catch is the definition: you cannot have owned a home, or an interest in one, anywhere in the world, ever, and if married your spouse cannot have owned one during the marriage. Confirm eligibility with your lawyer before budgeting around it.

What is the Toronto Vacant Home Tax?

A tax of 3% of the property’s current value assessment on residential property left vacant for six months or more in a year, applying from the 2024 taxation year. Every residential owner must file an annual declaration — and a property whose owner does not declare is deemed vacant and taxed. It matters most on second properties, inherited homes, properties held through a renovation, and investment units not yet tenanted. Rates and deadlines are set by the city and change.

Can a condo purchase fail financing because of the building?

Yes. A weak reserve fund, ongoing litigation, a special assessment, a very small unit, or a building with a high proportion of rentals can each narrow or close the lender list regardless of how strong you are. In a market where condition periods are short, that is a question to answer before the offer.

Do condo fees affect how much I qualify for?

Yes — 50% of the monthly fee is included in your debt service ratios under CMHC’s standard. Two identical units at the same price with different fees will approve for different mortgage amounts.

What changes above $1.5 million?

Mortgage insurance is not available at all, so the minimum down payment is 20% and the mortgage is conventional rather than insured. Below that the tiers are 5% on the first $500,000 and 10% on the portion above. More of the Toronto market sits above that line than anywhere else in the GTA.

Do you cover the whole City of Toronto?

Yes — downtown and the waterfront, North York, Scarborough, Etobicoke, East York and everywhere between. My office is in Brampton and I work in person, by phone and online. English, Hindi, Punjabi and Urdu.

Is the first conversation free?

Yes, and there is no obligation in it. I’ll tell you what’s realistic — including if the honest answer is that you should wait.

Buying or refinancing in Toronto?

Before you act, talk to Rajiv first. Tell me the situation and I’ll tell you what’s realistic — free, and in your language.

Book a free consultation

Land transfer tax rates and rebate maximums are set by the Province of Ontario and the City of Toronto; the Vacant Home Tax rate, exemptions and declaration deadlines are set by the City of Toronto. All are subject to change — position stated as at August 2026. Your lawyer calculates the actual figures for your transaction.