The first time home buyer's land transfer tax rebate is applied as an instant credit to reduce the land transfer tax otherwise payable to the Ontario Minister of Finance by up to $2,000. It is applied at the time that you take title to the property (when you pay for the property and close the deal). If you are buying in the City of Toronto, there is also a credit available to first time buyers for the full amount of the otherwise-payable Toronto Land Transfer Tax.
In order to qualify as a first time home buyer, you must not have owned a home anywhere in the world and you must occupy the home as your primary residence within 9 months after taking title.
I hope this helps.
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