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Finally, a tax break on Land transfer tax.

ontario-govt

Did you get a larger Land Transfer Tax rebate?

If you bought a home this year, and you’re a first time home buyer, then you’ll pay less tax..   The Ontario provincial govt has doubled the rebate from $2,000 to $4,000.   The rebate is for qualified first time home buyers only.

They also eliminated Land Transfer tax on the first $368,000 of the purchase price for first time home buyers.    Hey, this is good news.  And I applaud the govt for giving for giving first time buyers a break.

They also increased the Land Transfer Tax for homes over $2million.  Here’s the old and new tax tables.

“Old” Ontario Land Transfer Tax Rates
Home Purchase Price             Tax Rate
Up to $55,000                                 0.5%
$55,000 to $250,000                    1.0%
$250,000 to $400,000                 1.5%
Above $400,000                             2.0%

And here’s the new formula…

“New” Ontario Land Transfer Tax Rates
Home Purchase Price             Tax Rate
Up to $55,000                                 0.5%
$55,000 to $250,000                    1.0%
$250,000 to $400,000                 1.5%
$400,000 to $2-million                2.0%
$2-million and over                       2.5%

Enjoy the savings..

Kinda strange..  Remember when the Kathleen Wynne govt was considering allowing other municipalities, other than Toronto, to introduce a new land transfer tax?   NO?  Well, I do.. and you shouldn’t forget it either.. click here to remember..  Keep this in the back of your mind .. Let’s hope this isn’t some sort of strategy to catch us with our guard down..

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Mortgage brief.. CMHC ‘red warning’.. what’s it mean?

red-warningMuch has been made about CMHC’s Economists ‘Red Warning’ that was put out for the 4th quarter of 2016.  Let’s take a look at what the report actually says.

CMHC’s economists have 3 categories of measurement that are of concern.  Overheating, Price acceleration and Overvaluation.

VANCOUVER AND TORONTO

The Vancouver market had already been identified by CMHC as having moderate Overheating and Price Acceleration and Strong Overvaluation.    Toronto now has the same issues with the same Overall Assessment of Strong evidence of problematic conditions.

Put another way, CMHC believes the Toronto and Vancouver housing markets are vulnerable.   While this is cause for concern, there was also some other info in the report that we should be probably not overlook… Continue reading “Mortgage brief.. CMHC ‘red warning’.. what’s it mean?”

Mortgage Brief…BC’s 15% Foreign property tax coming to Toronto?

BC waterfrontAnd it begins in Vancouver… the long-awaited, little debated foreign property tax is about to begin.

Foreigners wanting to buy in Vancouver will need to add 15% to the purchase price..  Put another way, this adds $150,000 to the purchase price of a $1,000,000 property.

The new tax begins August 2nd.   The provincial BC govt says they want to ensure that home ownership remains within the reach of the middle class.  And if it doesn’t then, they say, it has created a new revenue stream.

MY THOUGHTS… Continue reading “Mortgage Brief…BC’s 15% Foreign property tax coming to Toronto?”

Today is your last chance to stop DOUBLING of Land Transfer Tax.

kathleen wynneAs this is such an important issue, I’m gonna repeat my last article.  Today is the last day to voice your opinion to our Provincial govt and tell them how you feel about the possibility of DOUBLING your Land Transfer Tax.     The govt is accepting all opinions until today.

The Minister of Municipal Affairs and Housing is Ted McMeekin… You can email his office through Mark Cripps at  Mark.Cripps@ontario.ca and by phone at 416 585 6842.

In case you don’t know what Land Transfer Tax is… the province charges a tax to the purchaser, every time a home is sold.  Yup, another cash grab.  It’s kinda like when you buy a new car… when you buy it, you are charged sales tax (today, that’s 13%… remember when it was 7% and 8%?  seeing a pattern here anyone?).   And when you sell that car, the sales tax is levied once again to the new purchaser…when they sell it, the new purchaser must pay this sales tax again… and so on, and so on.    But why?  Why should a sales tax be charged over and over again?   Can anyone explain this?

If you buy a house, and sell in 2 or 3 or 10 yrs, the govt charges this Land Transfer Tax.  It’s ridiculous and it’s not a fair system of levying a charge..   Yet, it’s something that has been accepted as the norm.

In Toronto, the mayor couldn’t balance the budget so he seeked special powers from the Province to introduce a Toronto Land Transfer Tax in 2008.  Yup, they just created a new tax out of thin air and slammed all property buyers with a double tax..   Nice, eh?

Look, if you are as upset with this as I am, then take 2 mins and send an email to the govt.   It’s one thing to bring into a major city like Toronto, but to bring into all communities across the province would be disastrous.   Not all of Ontario is experiencing prosperity.  This is shameful.  I don’t like making strong statements like that.  But I can’t help myself.

Stand up Ontarians!  Have your say.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

New Land Transfer Tax for ALL of Ontario??!! Ms. Wynne, stop the madness!

kathleen wynneDid you know that in 2008, the city of Toronto was given special powers by the Provincial govt to bring their own municipal land transfer tax?   Since then, homebuyers in Toronto have had to pay 2 land transfer taxes.  The Provincial one and the municipal one.

On a $500,000 home, Land Transfer tax in Toronto is $12,200.  In the rest of Ontario, it’s $6475.  On a $750,000 home, LTT in Toronto is $22,200. The rest of Ontario, it’s $11,475.  It’s a sliding scale with the % going up the more your home is worth.

Yesterday, October 27th (remember this date), we saw news reports that the Ontario provincial  is considering extending those same special powers to the rest of Ontario.    I’ll repeat that… the Provincial govt, led by Ms. Kathleen Wynne, is considering extending special powers to allow the rest of Ontario to add their own municipal land transfer tax.  Continue reading “New Land Transfer Tax for ALL of Ontario??!! Ms. Wynne, stop the madness!”

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