As some of you may be aware, the City of Toronto has approved changes to the Toronto Land Transfer tax to be effective as of March 1st. You may be wondering how this affects you as a buyer. We’re here to help!
First-time buyers will not see a change. Under the original proposal, first-time buyers would have been forced to pay an additional $475 in Toronto LTT. However, TREB pushed for an increase in the rebate from $3,725 to $4,475, meaning first-time buyers will not face an increase.
For current buyers who have already purchased a property and are closing on March 1st or later, the following changes were approved:
- Added an additional LTT of 0.5% of the value of a residential or non-residential property from $250,000 to $400,000 (an additional $750)
- Added an additional LTT of 0.5% of the value of a residential property above $2 million
- Added an additional LTT of 0.5% of the value above $400,000 of a non-residential property
- Increasing the maximum allowed First-Time Home Buyer Rebate to $4,475, up from $3,725
- Amended the first-time home buyer rebate program eligibility rules to restrict rebate eligibility to Canadian citizens or permanent residents of Canada
Please don’t hesitate to contact us if you have any questions!