It’s urging the city to reject a proposed increase in the Land Transfer Tax and made its opinion clear Tuesday at a meeting of the city’s budget committee.
“Toronto City Council has an opportunity to take action to support more affordable home ownership in our city,” said Tim Hudak, OREA CEO. “Today, home prices are at record highs and new listings are at record lows. It’s become so much harder for first-time home buyers and young families to break into the market. A proposed tax increase could not come at a worse time.”
Hudak added that the city should roll back the tax or at least not increase it; and he wants the city to follow the provincial government’s example of doubling the LTT rebate for first time buyers.
“Toronto is a great place to live, work and raise a family; for generations, it’s where thousands of young people got their start in life,” said OREA president Ray Ferris. “Research has demonstrated the LTT has discouraged economic activity and reduced listings since all home sellers know they have to pay the tax on their next purchase. Reducing the LTT will help alleviate the housing supply shortage by bringing much needed housing stock on the market.”
More market update:
An increase in the Land Transfer Tax in the City of Toronto would exacerbate affordability issues for the city’s young families, the Ontario Real Estate Association says.