Condos purchased in Toronto are subject to two Land Transfer Taxes, The Ontario land transfer tax and the Toronto land transfer tax.
If you are a first time home buyer, you are entitled to a rebate on the taxes. In the City of Toronto you are eligible for a rebate of up to $3725, which is the amount of tax on a purchase of $400,000. To see how to calculate or what the current rebate is go to the City of Toronto website.
The Province of Ontario has it’s own land transfer tax. They also have a rebate program for first time home buyers. The rebate is up to $2000 which is the amount $227,500. You can see up to date info on the Province’s website.
If you are not a first time buyer, you will have to pay both taxes at closing. These fee’s are not part of the mortgage, you actually have to pay them on closing.
Steven Campbell, Sales Representative
Forest Hill Real Estate Inc., Brokerage
Toronto, March 5, 2012 – Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively.
“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied,” said Toronto Real Estate Board President Richard Silver.
“It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February,” continued Silver.
The average selling price in the TREB market area was $502,508 in February – up 11 per cent compared to February 2011. The Composite MLS® Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared February 2011.
“If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA.”