The Toronto Sun’s Christina Blizzard reveals HERE that insiders are hinting at changes coming to the land transfer tax in a municipality near you (or the very one you live in)!
Sources say the Ontario Liberal Government will give municipalities the right to DOUBLE the amount of the land transfer tax that homebuyers are forced to pay when purchasing a property, by allowing them to charge MLTT in addition to the provincial land transfer tax (PLTT)
The City of Toronto is the only jurisdiction in Ontario that is allowed to set their own transfer tax rate in addition to the PLTT.
In Toronto, the $10-15,000 tax on a home (well, condo) priced at $450,000 is split between the city and Ontario. This agreement will raise $1.7 billion for Ontario this year.
The Ontario Real Estate Association isn’t happy about this possibility. They argue that the land transfer tax results in $2.3 billion of lost economic activity and a loss of 15,000 jobs, not to mention a reduction of 38,000 real estate transactions in Toronto.
Would increased land transfer taxes in municipalities surrounding Toronto make your reconsider your next home purchase?