Calculate your expenses ahead of time:
The Ontario Government charges a Land Transfer Tax each time the ownership of land passes. The tax is based on the purchase price and is payable by the Purchaser on closing. The Tax is 0.5% for the first $55,000, then 1% up to $250,000 , 1.5% up to $400,000, and 2% above that.
The Tax can be calculated as follows:
- $0.00 to $55,000.00: Purchase Price X 0.50%
- $55,000.01 to $250,000.00: Purchase Price X 1.0% less $275.00
- $250,000.01 to $400,000: Purchase Price X 1.5% less $1,525.00
- $400,000.01 and UP: Purchase Price X 2.0% less $3,525.00
For Example:
Purchase Price of $150,000
X 1.0% = $1,500, less $275.00, LTT = $1,225.00
Purchase Price of $200,000
X 1.0% = $2,000, less $275.00, LTT = $1,725.00
There is a program to rebate up to $2,000 of the Transfer Tax for first time home-buyers purchasing new homes, which has been extended on a year to year basis.