First-time home buyers will pay more tax on an average priced Toronto home if City Council approves changes to the Toronto Land Transfer Tax (LTT). The City of Toronto’s Executive Committee will receive a staff report today that proposes a $100 million increase to the LTT that could take effect as early as February.
“These proposed changes are a tax grab, pure and simple,” said Tim Hudak, OREA’s CEO-designate. “Toronto home buyers don’t need a tax hike – they already pay two land transfer taxes. City Council needs to make housing more affordable for young people, not less.”
As part of the 2017 city budget process, staff are proposing to raise the Toronto LTT to match the current rate of the higher provincial Land Transfer Tax. On an average priced Toronto home, these changes will add about $750 to a buyer’s closing costs. The provincial and municipal land transfer taxes add $22,000 to the final cost of an average priced home in Toronto.
In November, the Government of Ontario announced it would be increasing the provincial land transfer tax (LTT) rebate for first-time home buyers from $2,000 to $4,000. The new provincial LTT rebate will help more young families achieve their dream of home ownership.
“Toronto should follow Ontario’s lead and increase the municipal LTT rebate for first-time home buyers,” said Hudak. “The last thing we need is for the City to take the money out of the hands of first-time buyers just when they finally got a break.”
Representing the 67,800 real estate brokers and salespeople members of Ontario’s 40 real estate boards, the Ontario Real Estate Association (OREA) serves its members through advocacy, educational programs and special services. www.orea.com.