Propertywire.ca recently published a good article about land transfer taxes across Canada – homebuyers in Toronto pay twice! For instance, on a $300,000 condo, the Ontario Land Transfer tax would be $2975 and the Toronto LTT would be $2725.
However, first time homebuyers can get a partial rebate of the provincial amount – up to $2,000. Click here for more information.
The article is below:
Ben Franklin was not known for being a property market pundit, but he might have been able to add that to his credentials when he said. “In this world nothing is certain but death and taxes.”
This truism is not just applicable to the lives we live- it is also very much a part of where we live our lives. And there is something about the suggestion of taxation that stirs the rancour in citizens everywhere. Land Transfer Tax, or Property Transfer Tax, required in many provinces across this country, is one of the most significant upfront costs that a home purchaser is presented with. In some regions, this cost is becoming prohibitive to the point that it is becoming fodder for political platform and policy initiative.
Ontario, British Colombia, Manitoba, Nova Scotia and Quebec all have taxes based on the purchase price, or fair market value of a property. Given the surge of prices in various centres in these provinces, (TREB reported the average price for the first two weeks of July was $464,277), this tax represents a major expense.
The impact of these significant costs are far reaching. The benefits of home ownership-both economically (because of spin off spending from home sales) and socially (because of strong social foundation and civic pride associated with home ownership), extend to the community and the local economy. Homeownership is not, therefore, just about the homeowner.
Click here for the full article