Short answer
Toronto’s eligible first-time-purchase rebate is up to $4,475 for qualifying new or resale residential property. It is separate from Ontario’s maximum $4,000 refund.
The closing problem buyers face
A buyer either misses a Toronto rebate or assumes the combined provincial and municipal relief erases every closing tax regardless of price.
What the official rule says
Toronto states that eligible first-time purchasers may receive an MLTT rebate of up to $4,475 for qualifying new-construction or resale residential property.
What this does not guarantee
The rebate does not apply to commercial, industrial or multi-residential property, and first-time-purchaser, occupancy, citizenship or permanent-residence and application requirements apply.
A practical Ontario example
Illustration only: An eligible Toronto buyer may potentially receive both the Ontario and Toronto relief, but tax exceeding those maximums remains payable at closing.
What to do before the offer becomes firm
Ask the lawyer to confirm both programs and the exact net amount. Keep a buffer for title insurance, legal fees, adjustments and moving costs rather than using every dollar for down payment.
- Which municipality and property type are involved?
- Who will be on title, and what are their citizenship, residency and ownership histories?
- Is the property resale, new, substantially renovated, rental, mixed-use or held by a business?
- Which taxes, rebates and adjustments has the lawyer confirmed in writing?
- How much verified cash remains after the deposit and every closing cost?
Rajiv’s broker perspective
A lender decides the mortgage amount under its credit, income, property and loan-to-value policies. The province, municipality, CRA and lawyer determine the applicable taxes and legal closing funds. Those are different decisions. I would calculate the full cash-to-close first, preserve a contingency and only then compare A-lender, alternative/B, MIC or private options if the complete borrower and property facts require another financing path. Borrowing a tax shortfall at the last minute can change debt ratios and approval.
Related: First-Time Buyer Rule Hub · Real Estate Centre · Updates & Rules Centre
Could closing costs change the mortgage plan?
Send Rajiv the price, municipality, property type, deposit, title holders and available closing cash. He can pressure-test the funds-to-close and identify the tax or legal questions that should be confirmed before you commit.