Could you use an extra $7000 on your next move?
The average Toronto home buyer pays $7000 in land transfer tax upfront and it can’t be included in their mortgage. This discourages some people from moving, among many other negative effects.
With the upcoming election, the topic of phasing out the Toronto land transfer tax is popular. I know I’m hearing about it a lot between the Toronto Real Estate Board and the news. TREB is promoting the “Let’s Get This Right Toronto” campaign in support of phasing out the additional land transfer tax. The Toronto Star recently wrote an article about how the land transfer tax should be an election issue.
There are a number of benefits to phasing out the additional Toronto land transfer Tax:
- Home buyers won’t have to pay the additional tax up front and can put the money towards their down payment, retirement, renovations, furniture, appliances, etc.
- Since 2008, City hall has collected $300 million MORE than was budgeted for. It’s a cash grab for which we get no additional services
- By phasing out the Toronto land transfer tax, it won’t spread to other areas of the GTA and across the province.- If the Toronto LTT remains, there is a definite risk that it will increase.
- With an already competitive market, the government shouldn’t discourage buyers.
It is currently being debated by city hall whether to phase out the Toronto land transfer tax, which is why now is a great time to take action.
Check out this TREB video for more information on Why You Should Care About the LTT.