Are you trying to figure out how Ontario’s land transfer tax fits into your Crosby home purchase? You are not alone. It is one of the most misunderstood closing costs, and it shows up right at the finish line. In this guide, you will learn what the tax is, how it is calculated in Ontario, how the first-time buyer rebate works, and what you should budget at common Crosby and Richmond Hill price points. Let’s dive in.
What land transfer tax covers
Land transfer tax (LTT) is a one-time provincial tax you pay when your ownership is registered. It is separate from ongoing property tax, home insurance, mortgage payments, or HST. Your real estate lawyer typically calculates, collects, and remits the tax on your behalf at closing.
In Ontario, every buyer pays the provincial LTT. The City of Toronto also charges a separate municipal land transfer tax, but it only applies to properties inside Toronto’s city limits. If you are buying in Crosby or anywhere in Richmond Hill, you pay the provincial LTT only.
Ontario LTT rates and how to calculate
Ontario uses tiered rates. You apply each rate to the portion of the price that falls within that bracket, then add the results:
- 0.5% on the portion up to and including $55,000
- 1.0% on the portion over $55,000 up to and including $250,000
- 1.5% on the portion over $250,000 up to and including $400,000
- 2.0% on the portion over $400,000
To estimate your LTT, split your purchase price into these brackets, multiply by each rate, and sum the totals. Your lawyer will confirm the exact figure before closing.
First-time buyer rebate
Ontario offers a first-time buyer refund that can reduce your provincial LTT by up to $4,000. If your calculated LTT is $4,000 or less, the refund can eliminate it entirely. The refund fully offsets LTT on homes priced around $368,000 or lower. If your LTT is higher than $4,000, you pay the difference after applying the refund.
Eligibility is based on being a true first-time buyer and on occupancy requirements. Rules also consider whether your spouse or partner has owned property before. Your lawyer will handle the paperwork at closing or guide you through a post-closing claim if needed. Because rules and forms can change, confirm eligibility and timing with your lawyer and the Government of Ontario.
Crosby examples at common prices
These examples assume a purchase in Crosby or elsewhere in Richmond Hill. They show provincial LTT only and round to the nearest dollar.
Example: $600,000 purchase
- Provincial LTT total: $8,475
- $55,000 at 0.5% = $275
- $195,000 at 1.0% = $1,950
- $150,000 at 1.5% = $2,250
- $200,000 at 2.0% = $4,000
- If eligible first-time buyer: $8,475 − $4,000 = $4,475 payable
Example: $1,000,000 purchase
- Provincial LTT total: $16,475
- $55,000 at 0.5% = $275
- $195,000 at 1.0% = $1,950
- $150,000 at 1.5% = $2,250
- $600,000 at 2.0% = $12,000
- If eligible first-time buyer: $16,475 − $4,000 = $12,475 payable
Example: $1,500,000 purchase
- Provincial LTT total: $26,475
- $55,000 at 0.5% = $275
- $195,000 at 1.0% = $1,950
- $150,000 at 1.5% = $2,250
- $1,100,000 at 2.0% = $22,000
Example: $2,500,000 purchase
- Provincial LTT total: $46,475
- $55,000 at 0.5% = $275
- $195,000 at 1.0% = $1,950
- $150,000 at 1.5% = $2,250
- $2,100,000 at 2.0% = $42,000
Do you pay Toronto’s MLTT in Richmond Hill?
No. Only properties inside the City of Toronto pay the municipal land transfer tax. A helpful comparison: a $1,000,000 purchase in Toronto would trigger both the provincial LTT ($16,475) and the Toronto MLTT (another $16,475), for about $32,950 in total. In Crosby or anywhere in Richmond Hill, you pay the provincial LTT only.
Closing costs to budget
LTT is just one part of your cash-to-close. Plan for these typical items, which vary by situation:
- Provincial land transfer tax (see examples above)
- Lawyer and closing fees: $800 to $2,000+
- Title insurance: $150 to $500
- Home inspection: $300 to $600 (often paid before closing)
- Appraisal: $300 to $600 if your lender requires it
- Mortgage default insurance premium if your down payment is under 20% (usually added to the mortgage principal; ask your lender)
- Property tax and utility adjustments at closing (small credit or debit)
- HST on new builds or certain components (rules differ from resale homes)
- Moving, utility hookups, and immediate repairs or upgrades (variable)
Here are two sample budgets to frame your planning. These do not include your deposit or down payment and are estimates only. Get quotes from your lawyer and lender for precise numbers.
First-time buyer, $600,000 resale in Richmond Hill:
- LTT after $4,000 rebate: $4,475
- Lawyer, title insurance, inspection, appraisal: about $2,500
- Adjustments and misc.: about $500
- Estimated cash to close: about $7,500 to $9,000
Move-up buyer, $1,000,000 home in Richmond Hill:
- Provincial LTT: $16,475
- Lawyer, title insurance, other fees: about $2,500
- Estimated cash to close: about $19,000 to $22,000
Special cases to flag
- New construction: HST and builder rebates interact with your purchase differently than a resale. Confirm how HST and any rebates factor into your total with your builder and your lawyer.
- Non-residents and other surcharges: Additional provincial measures can apply depending on your residency or buyer status. If you are a non-resident or buying with a non-resident partner, ask your lawyer for the latest rules.
- Documentation and timing: First-time buyer refunds require proper forms and verification. Your lawyer usually handles this at closing, but you may need to claim afterward if it is not processed on closing day.
How Kevin Lin Realty helps
You deserve a clear, accurate plan for your closing costs, not last-minute surprises. Our team works closely with your lawyer and lender so you understand your LTT, your first-time buyer refund if you qualify, and every item in your cash-to-close. We pair local Richmond Hill expertise with high-touch transaction management to keep your move smooth from offer to keys.
If you are planning a Crosby purchase and want a precise cost breakdown for your price range, reach out to Kevin Lin Realty. We will walk you through real numbers for your situation and a step-by-step plan to close with confidence.
FAQs
How much Ontario LTT will I pay on a Crosby home?
- It depends on your purchase price. As examples, a $600,000 home is about $8,475 in provincial LTT, $1,000,000 is about $16,475, and $1,500,000 is about $26,475. First-time buyers can reduce LTT by up to $4,000.
When is Ontario LTT paid on a Richmond Hill purchase?
- LTT is paid at closing when your ownership is registered. Your lawyer calculates the tax, collects funds as part of your closing costs, and remits it on your behalf.
Do first-time buyers in Crosby qualify for a rebate?
- If you meet Ontario’s first-time buyer criteria and occupy the home as your principal residence, you can get up to $4,000 off your provincial LTT. Your lawyer will confirm eligibility and handle the paperwork.
Do I pay Toronto’s municipal LTT if I buy in Richmond Hill?
- No. The City of Toronto’s municipal LTT applies only to properties within Toronto’s city boundaries. Crosby and Richmond Hill buyers pay the provincial LTT only.
How should I budget my total closing costs beyond LTT?
- Plan for legal fees, title insurance, inspection, appraisal, potential mortgage default insurance, adjustments, and moving costs. For a $600,000 first-time purchase, a rough total cash-to-close estimate is about $7,500 to $9,000 after the rebate. At $1,000,000, plan for about $19,000 to $22,000.
What if I am buying a new build or I am a non-resident?
- HST and builder rebates can change your totals on new construction, and certain surcharges may apply to non-residents. Confirm the latest rules and your exact costs with your lawyer before you firm up your budget.
