REALTORS are no fans of land transfer taxes, which are paid by home buyers when they purchase a home. We strongly believe that home ownership is something that all levels of government should be encouraging, not discouraging with punitive taxes directly targeted at home buying. That’s why we are calling for governments to re-think where they stand on these taxes.Land Transfer Taxes are substantial. In Toronto, the average home buyer pays close to $12,000 in land transfer taxes, about half to the provincial government and about half to the City of Toronto, each of whom have their own land transfer tax. Home buyers in the rest of the province only pay the provincial land transfer tax. Click here to view the full article.
The Toronto Land Transfer Tax is an egregious tax grab that adds enormously to the closing costs for home buyers in Toronto. Rob Ford has promised to repeal this tax, but it’s unlikely that this will happen any time soon because of Toronto’s budget problems. At a minimum, there should be some additional relief for first time buyers, who drive the real estate market. The most logical step would be for the Province to increase the first time buyer rebate from the current $2,000 to more like $4,000. Let’s hope the new Provincial government is listening.