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