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Toronto Land Transfer Tax Impact - What it Costs Buyers and the Economy

Toronto Land Transfer Tax Costs City’s Economy $170 Million

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City of Toronto Housing MarketA recent study on the affects the Toronto Land Transfer Tax, conducted by the C.D. Howe Institute and two University of Toronto Economics Professors shows  the Toronto Land Transfer Tax has had a negative economic impact, which TREB estimates to be $170 million in 2008.  

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Questions are being raised on the need to roll back the tax and fast.

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The study found that the Toronto Land Transfer Tax, which costs the average Toronto Homebuyers approximately $4,000 extra in closing costs has reduced sales of re-sale single family homes (condos were not included in the study) by 16%.   This estimate could be much higher if we took into account the condominium market as well.

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Housing Sale activity has vital economic spins-offs:

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A separate study by Altus Clayton for the Canadian Real Estate Association determined that every re-sale housing transaction in Ontario generates about $33,425 in economic spin-off on items like renovations, furniture and appliances.   Even Harpers new budget addresses the economic need to allow families the ability to make necessary renovations on their homes and is finding ways to inject incentives.

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When people buy a home, they usually spend thousands of dollars in renovations, furniture, decor, landscaping and appliances and thousands of Toronto jobs depend on that spending.  

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Any City policy that impacts housing sales has a direct impact on the City’s economy and jobs.

If you agree please voice your opinion to City Council as they are preparing their operating budget for 2009.

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The full report on the Land Transfer Tax impact is available at the C.D. Howe’s web site  published in December 2008.

 

Land Transfer Tax CalculatorQuick Reference Tool for looking up information about the Ontario and Toronto Land Transfer Tax:

View "both" calculations side by side to compare.

Land Transfer Tax Forms can also be found on our site http://www.suttonrealty.com/Land_Transfer_Tax/page_1951102.html

If you are buying outside of the City of Toronto the Toronto Land Transfer Tax is not applicable.

If you have any questions feel free to call us at 416-896-3333 or visit www.SuttonRealty.com

 

In the interim Sutton Realty Systems is doing their best to help find other resources to assist Home Buyers with the purchase of a home, through programs like the Sutton Member Ultra Low Mortgage Program - one of the Lowest 5 Year Closed Mortgage Rates in Canada as of December 19th.

 

If you have questions about the Toronto Land Transfer Tax call our Branch Manager at 416-896-3333 - we will review First Time Buyer Government Incentives that might help you save on closing costs when every dollar in savings counts!

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Posted: Friday, December 19, 2008 1:36 AM by Sutton Realty
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