Proposed changes to the Land Transfer Tax in Toronto have been criticized by the Toronto Real Estate Board for their impact on first-time buyers.
The proposals include:
- adding a new additional LTT rate on the portion of a property valued from $250,000 - $400,000
- harmonizing the Land Transfer Tax rebate for first-time home buyers with the Provincial Land Transfer Tax rebate threshold of $4,000
- eliminating the first-time buyer rebate entirely for home buyers purchasing a home above a price to be determined by City Council
- increasing the LTT rate on the value of a home over $2 million from 2 per cent to 2.5 per cent.
The proposals will be put to the City of Toronto’s Executive Committee this week but TREB’s president, Larry Cerqua, says they would be in contrast to the recent narrative of the city’s housing problems.
“The proposed changes to the City of Toronto’s Land Transfer Tax are a cash grab, and would make all Toronto home buyers pay more Toronto Land Transfer Tax, which means that the City is proposing to make home ownership in Toronto even more expensive,” Cerqua warned.
TREB’s figures show that buyers of an average priced home in Toronto pay $11,000 in LTT currently, but the proposed changes would add 7 per cent ($750) to the cost with first-time buyers paying an extra 4 per cent ($425) after a proposed increase to the rebate for new buyers.
City Hall should be focused on making home ownership in this great City more affordable, not less; and should be relying less on this tax, not more,” said Von Palmer, Chief Communications and Government Affairs Officer at TREB. “TREB will be participating in the City’s upcoming budget consultations and will be raising concerns with these proposals if they move forward.”