New tax set to impact Ontario home sales

The Ontario government is to extend the power of municipalities across the province to charge a land transfer tax, according to the Ontario Real Estate Association.

The additional cost of a home, already in place in Toronto, would add thousands of dollars to the cost of buying a home in the province; government officials deny that the measure has been decided on.

“Ontario homebuyers are already charged a provincial land transfer tax, so by adding a municipal tax, they’re essentially doubling the tax burden on Ontario families,” said Patricia Verge, president of OREA.

“If the Ontario Liberals follow through with this plan, homebuyers will be forced to pay $10,000 in total land transfer taxes on the average priced home in Ontario, starting as early as next year.”

The association calculates that more than 38,000 property transactions did not take place in Toronto because of the introduction of the municipal land transfer tax.

Benjamin Tal, deputy chief economist with CIBC warned against the extension; he told the Financial Post that “most of Ontario is not booming.”

A new Ipsos Reid poll shows that the overwhelming majority of Ontarians (89 per cent) outside of Toronto oppose a new MLTT charged on home purchases in their area.

Respondents agreed that if a new land transfer tax were put in place, it would limit their ability to afford a home (77 per cent) and they would likely have to delay a purchase (75 per cent).

The majority (77 per cent) of Ontarians agreed that the government should do all it can to help families own their own home.

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