The hidden cost of home ownership
One of the hidden costs of home ownership that many seems to be hotly debated topic every election period, yet few people actually know how much it is costing them.
So what’s the deal with the land transfer tax? How much is it and who pays?
The land transfer tax that you often hear about in Toronto is the municipal land transfer tax that property buyers pay when they purchase (or “transfer to”) a new or resale home in the city. But long before the municipal land transfer tax came into play in 2007, Ontarians were already paying the provincial portion of this tax. Just like our income tax system, the land transfer tax system is tiered. The good news is that sellers never pay it, and first time home buyers of both new and resale get a significant rebate! (See below).
Or, broken down by purchase price, the land transfer tax payable is:
Land transfer taxes are payable on your closing date and are arranged through your lawyer who handles your legal and financial documents. They will calculate the portion that you owe, and e
There you have it! If you are planning on buying a condo in Toronto, don’t forget to budget for the land transfer taxes as a part of your closing costs!