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Will Realtors and mortgage brokers ever agree?

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Guest | 03 Jul 2013, 08:50 AM Agree 0

”I don’t think it would have any effect in terms of getting people to buy,” Darin Bauer, with Mortgage Intelligence in Toronto. “Cutting the land transfer tax by 10 per cent isn’t going to make someone jump and buy a $500K home. I think they should just leave the tax where it is.”
The comment echoes those of brokers across the city as Toronto Mayor Rob Ford prepares to bring his motion before the city’ executive committee this week in an effort to reduce – but not eliminate – the city’s land transfer tax.
He’s hoping to win a 10 per cent chop – something Realtors across the city are standing in support of. As a group, they have spent the last two years lobbying for an outright ban on the tax. It’s something Ford is now dismissing as an impossible dream.
But where Realtors see any reduction in the tax as likely to bolster home sales – well down from last year – brokers are more skeptical.
“It’s really a question for Realtors,” said Eddie Pita, a broker with Mortgage Alliance, “but I don’t think reducing the tax will make for a huge dent in the market in terms of speeding up sales.”
It would have a significant impact on the city’s coffers, argue Ford critics.
The tax was, in fact, responsible for injecting $344.5 million into the city last year, with even a 10 per cent cut likely to hit some service provision, according to the City Hall report.
  • Dale Rumming | 03 Jul 2013, 11:37 PM Agree 0
    I am a realtor on Vancouver Island where the market has gotten more "seasonally adjusted" than the big cities. That being said, most of my clients are retired or retiring, and the cost of upgrading or downsizing, with the tax up front, makes it very hard for people on a limited budget to come up with the 3000 or 4000 more on a basic home. They consider what they would like to do, look at their up front costs after years of trying to save when everything else except wages and pensions are going up, and they put it off for yet another year. The big cities wouldn't see much of an impact from getting rid of this tax because they are dealing with a larger number of buyers, but from where I work, I can see more people jumping off the fence and landing in their own yard!
  • Erminia | 04 Jul 2013, 10:52 PM Agree 0
    It is just another money grab for the city to squander on legal bills and other insignificant occurrences. The city faired just as well or not as well when there wasn't any municipal land transfer tax.
    Considering what has been going on lately with the three levels of government, people are very reluctant to give away any more money than they have to.
  • Tony Hozjan | 05 Jul 2013, 09:10 PM Agree 0
    Toronto and other municipalities should reduce the size of government by at least 10%. Double land transfer tax is crazy to say the least. People debating whether 10% cut is OK or not fall into the what's wrong with you category. Push to eliminate the double land transfer tax in Toronto before it spreads to the rest of Ontario. Reduce the size of these bloated governments should be every tax payers concern. The average new $400,000.00 house has approximately $100K in tax. And the list goes on.
  • Z. Janes | 23 Jul 2013, 02:25 AM Agree 0
    This article is about nothing...taxation is high and middle class and low income families can barely keep up with the inflation...governments are wasting billions and looking in taxpayers pockets to pay for their blunders...most politicians try to solve everything with increased taxes.
    How about giving up the politicians' tax free allowances for starters? Some working poor people don't maker wages that amount to the politicians' perks, benefits and tax free allowances.
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