Stomp Realty Inc. (www.StompRealty.com), a full-service boutique-style realty brokerage, is weighing in on the proposal to allow cities outside of Toronto to impose their own land transfer tax. —
A recent Toronto Sun report indicated that there may be provincial legislation allowing for cities outside of Toronto to impose their own land transfer tax. This move would serve as a revenue gainer for the province, but would double the amount of homeowners having to pay in tax when purchasing a home. (Source: Dunick, L., “Real Estate board urges city not to add municipal land transfer tax,” October 28,2015;
“It’s one of those circumstances where you know the province is looking for ways to earn revenue,” says Erica Smith, Broker at Stomp Realty Inc. “But the question should always be at what cost? Especially when considering smaller towns far outside of Toronto, an additional tax can be the difference to whether or not a buyer can actually afford the home.”
The Ontario Real Estate Association (OREA) is in opposition of this proposal and sees it as something that would negatively impact home buyers. They argue that if the government follows through with this plan, it could mean home buyers will be forced to pay $10,000 in total land transfer taxes on the average priced home in Ontario. This fee could be implemented as early as next year.
The current land transfer tax law, as it stands, does have some exemptions for first-time home buyers in which they are given a large sum of the land transfer back. But there are certain conditions that have to be met and that exemption is not uniform for all first-time buyers.
“Stomp Realty Inc operates out of Toronto where the municipal land transfer tax is already in existence,” concludes Smith. “Future homeowners should work with real estate agents to figure out which options are available to them before purchasing a home.”
For more information on how Stomp Realty Inc helps Toronto residents buy and sell homes, as well as handle rental agreements, visit their web site at www.StompRealty.com.
Name: Joy Paterson
Email: Send Email
Organization: Stomp Realty Inc., Brokerage
Address: 163 Sterling Road, Unit #10 Toronto, ON M6K 2B2
Release ID: 96101