Changes were recently approved for the Toronto Land Transfer Tax (LTT) which will cause additional Toronto Land Transfer Tax costs for some home buyers with a closing date on or after March 1, 2017.
Here is a list of changes to the Toronto LTT that have officially been approved by Toronto City Council as of yesterday - Wednesday February 15, 2017. The changes are effective for any real estate transactions closing on or after March 1, 2017:
- Added an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750)
- Added an additional LTT of 0.5% of the value of a residential property above $2 million
- Added an additional LTT of 0.5% of the value above $400,000 of a non-residential property
- Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725
- Amended the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada
The Toronto Real Estate Board (TREB) mounted a comprehensive campaign to oppose the changes. Thanks to this opposition, the following concessions were made:
- TREB pushed for an increase in the rebate from $3,725 to $4,475, which means that first-time buyers will not face an increase.
- All first-time buyers will be eligible for a rebate.