As current home owners already know and first time buyers will soon find out is that any transfer in land or home ownership in Ontario is subject to a Land Transfer Tax, with very few exceptions.
The Land Transfer Tax is based on the amount paid and is calculated in the following way:
- 0.5 percent of the value upto and including 55,000
- 1.0 percent of the value which exceeds 55,000 upto and including 250,000
- 1.5 percent of the value which exceeds 250,000 upto and including 400,000
- 2.0 percent of the value which exceeds 400,000
In Toronto, home owners have also been facing a Municipal Land Transfer Tax in the transfer of home ownership. This is over and above the Provincial Land Transfer Tax. The same guidelines apply for the calculation of Municipal Land Transfer Tax.
First time home buyers are eligible for a tax rebate of most or all of both Land Transfer Taxes.
Mayor Rob Ford had promised the removal of the Municipal Land Transfer tax if he was appointed office. Some Councillors seem to be getting cold feet now due to the budget issues that face our city.
In a recent email I sent to Mayor, Rob Ford, reiterating the importance of eliminating this tax to provide more affordability for home owners and continue to drive the Real Estate market, he replied:
“I remain committed to eliminating this tax and currently planning do so in 2012.”
This is a commitment that all home owners hope will live through. Do your part and email Mayor, Rob Ford and address your concern.
We work hard for our money, so let’s try to put more of it back into our pocket.
If you have any question, please feel free to get in touch with me and have your best interests protected at all times. Call me today and let’s talk.
Sam Kolahi Azar