Land transfer hike impact

by Justin da Rosa17 Feb 2017

An increase to Toronto’s land transfer tax not expected to materially impact housing affordability, according to one real estate veteran.

"The reality is, the demands placed on the city from a growing population means that transit and infrastructure needs must be addressed. The modest property tax increase is understandable as city dwellers enjoy some of the lowest property taxes in the province, which have been kept under the rate of inflation for the last decade,” Lauren Haw, Zoocasa CEO said in an email statement to REP.

“While higher property taxes won’t make or break affordability for the average home buyer, it may impact those who have been living long term in homes that have seen significant value increases – the owners' incomes haven’t necessarily kept pace.”

The City of Toronto announced an increase to the land transfer tax that is expected to amount to about 3.29%, once other fees, including the City Building Fund, not controlled by the city are factored in.

The hike is expected to cost homeowners around $100 extra per year on their property tax bills.

It was supported by Mayor John Tory; city council voted 35-8 in favour of the plan during the two-day debate on the 2017 budget.

"We should not have the responsibility for housing — at least not the financial responsibility," Tory said per the CBC.

COMMENTS

  • by Bill 2/17/2017 10:38:29 AM

    I'm confused. Why is an increase in Land Transfer Tax showing up on the Property Tax bill? Or is it the Property Tax that is increasing 3.29%. Toronto is fortunate that the Commercial/Industrial base is carrying the majority of the tax revenue. The residential base in many cities outside Toronto is carrying the load.

  • by Cyril Aylward 2/20/2017 9:44:53 AM

    I think the writer meant Property Tax, not Land Transfer Tax. If so, it will be one heck of an increase. Good Real Estate Market!!!!!!.

  • by John 2/24/2017 2:42:19 PM

    Yeah, I was confused about that too. PTT is a one time cost on the purchase of a property. And on the overall topic of RE in Canada, as a realtor in YVR who's witnessed what has happened here over the last decade, and now the out-of-control price run-up in YYZ, it leads me to believe that if the ON gov't doesn't do something similar to what the BC gov't did (albeit ham-handedly) it is not going to end well. If the country's biggest city has an RE meltdown the tsunami will wash right over the country. That market has to be forcibly cooled, and fast...only my opinion..

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