Home Buyers Suffer Because Of Toronto Land Transfer Tax
A lot of people think that the Toronto Land Transfer Tax isn’t fair, and I agree with them. The Toronto Land Transfer Tax makes home buyers pay much more than their fair share. It makes owning a home more difficult.
“It is unfair to seniors, it makes living in Toronto more expensive and it works against the city’s long-term economic interest.”
-Mayor Rob Ford , June 1, 2012 (speaking about LTT)
What is the Toronto Land Transfer Tax?
The Toronto Land Transfer Tax is a tax on the dream of home ownership. This tax applies every time someone purchases a home or condo in Toronto. With the current home prices in Toronto, the average home buyer faces about $15,000 in land transfer taxes. This tax has to be paid in full before moving into a home or condo.
If you end up purchasing a home or condo south of Steeles Avenue, why should you be penalized by paying a second land transfer tax? For example, let’s say you purchase at a price of $400,000 north of Steeles Ave, in Markham. At $400,000, the Ontario Provincial Land Transfer Tax will cost you $4,475, according to our Land Transfer Tax calculator. Lets take the same figures and apply it to a purchase of a condo anywhere in Toronto, just south of Steeles Ave. You would pay the same Ontario Provincial Land Transfer Tax of $4,475, plus the City of Toronto tax of $3,725. That’s a total of $8,200. $8,200!!
This is unfair. It’s hurting homeowners trying to sell, and potential home buyers looking at the dream of home ownership. This tax is making it unaffordable for some buyers and is deterring people from buying in Toronto. Some people are choosing to buy their real estate in Markham or Richmond Hill to try and avoid this tax.
“Two thirds of City of Toronto residents (66%) support a plan to repeal the land transfer tax.”
-Mike Colledge — President, Canadian Public Affairs, Ipsos Reid, June 1, 2012
The city of Toronto says that this tax is a big part of their revenue, and aids in the plan to have a budget surplus. But what happens in a slow real estate year? Has the city of Toronto made a mistake by depending on this land transfer tax too heavily? In a slow year, does the city go into a huge amount of unrecoverable debt, and then add “another” tax? It’s unfortunate and unfair that homeowners have to take the hit with another tax that pays for the government’s budget deficit. Why should they have to forgo homeownership in the city as a result? This doesn’t only hurt homeowners but it ultimately hurts the city as more people moving further outside the GTA means less economic investment within Toronto, and ultimately even less tax dollars and other forms of revenue in the long run.
Looking at the situation as outlined above, this Toronto Land Transfer Tax:
- makes Toronto less fair
- makes our city less reliable
- makes our city less competitive
- risks our economic vibrancy
- makes our city less affordable
- makes our government less reliable
- makes our city less green and less livable
In order to put an end to this Toronto Land Transfer Tax, visitwww.letsgetthisrighttoronto.ca and follow the steps. It only takes 2 minutes.
Feel free to share this page on your social networks and spread the word. By eliminating this tax, the Toronto real estate market will continue to be one of the strongest markets in the world. We will continue to attract investors and immigrants to this city and help make this city grow.
The Toronto Land Transfer Tax penalizes residents of Toronto. That’s no way to build a great city.