Government Of Ontario May Double Land Transfer Taxes Across Province

By: Thomas Cook

Government Of Ontario May Double Land Transfer Taxes Across Province

The Ontario Real Estate Association has launched a campaign to highlight the negative aspects and impact of the Municipal Land Transfer Tax, something that Toronto has had in place since 2008. This tax can add thousands of dollars to the cost of buying a home in the city.
 
Research by the Ontario Real Estate Association has found that a considerable number of people who plan on buying a home in the next two years are considering buying a home outside of the city of Toronto – such as other parts of the GTA that do not have the Land Transfer Tax – specifically to avoid the tax, resulting in the possibility of fewer homes sold in the city.
 
Now, the Ontario government has indicated that they are considering allowing those cities that do not have a Municipal Land Transfer Tax in place to enact one. According to the Ontario Real Estate Association, it’s estimated that over give years almost 40,000 home sales did not happen in Toronto due to the tax.
 
“Ontario home buyers are already charged a provincial land transfer tax, so by adding a municipal tax, they’re essentially doubling the tax burden on Ontario families,” said the president of the Ontario Real Estate Association, Patricia Verge, in a press release. “If the Ontario Liberals follow through with this plan, home buyers will be forced to pay $10,000 in total land transfer taxes on the average priced home in Ontario, starting as early as next year.”