Owning a home is a dream for 91% of Ontarians, but that dream may have to wait for a while longer as our province plans to give municipalities the ability to impose a municipal land transfer tax. This is certainly not good news. Do you know that the government is already charging every home buyer 2% of the home’s value for tax purposes in Ontario? Yes, that’s a lot and it’s bound to get a lot more if the MLTT pushes through. With 3 out of 4 Ontarian home buyers possibly having to put off purchasing a home if the MLTT comes to fruition, this is an issue that we simply cannot ignore.
What can we do? Let your voice be heard against raising the land transfer tax. It only takes 30 seconds to let your local MPP know that you supporting a bill against the Municipal Transfer Tax. Fill out this form and say NO to another home owner tax!
OREA Takes Action!
A few weeks ago, the Ontario Real Estate Association learned from very refutable sources inside the government that our province is on its way to allow municipalities to charge a municipal land transfer tax or MLTT. This may not sound like a huge deal at first, but if this pushes through, an Ontarian buying an average priced home will have to shell out a total of $10,000 in land transfer taxes alone. That’s quite a sum, since the average home is priced is at around $450,000.
In response to this, OREA (Ontario Real Estate Association) launched a campaign to help prevent the spread of MLTT. Although the launch of the Don’t Tax My Dream campaign is a success and have garnered quite a bit of media coverage, there is still a lot to be done to ensure that Ontarians don’t end up paying almost double the land transfer taxes.
At current time, Toronto home buyers are already paying the additional tax that is about to be implemented for the whole province. Although the city generates about $300 million yearly from MLTT, it can spell disaster in the long run. Think about this, OREA President Patricia Verge estimates that the implementation of the MLTT has led to up to 38,000 fewer real estate transactions in Toronto. That’s about 38,000 families that were not able to buy a home in Toronto or looked elsewhere.
Some may argue that the implementation of the land transfer tax will raise $1.7 billion for our province just for this year alone, but Verge counters that from her estimates, the lost real estate transactions resulting from this could mean a loss of 15,000 jobs and a loss of $2.3 billion in economic activity. Think about it, would the additional tax then be worth it?
You Should Take Action!
Leeds-Grenville MPP Steve Clark presented a motion earlier this week calling on the government of Ontario to oppose the spread of the MLTT. Come December 3 (just a month from now!), this motion will be debated. What you can do is make your voice be heard by letting your MPPs know what your stand is regarding the MLTT. Join theDon’t Tax My Dream campaign and take action now.
At Goodalemiller, we believe in the Canadian dream of owning a home. We strive with other Ontario Realtors to protect affordable home ownership in our province not just for now but for future generations as well. Contact us and we’ll see what we can do to make your home ownership dream a reality.