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.