Just one of the many ways real estate organizations are helping consumers. The following was clipped from the OREA members newsletter.
"Municipalities in Ontario are gearing up to force the province to grant them the authority to charge a municipal land transfer tax (LTT) on home buyers.
Currently allowed only in Toronto, this tax may potentially spread to other regions of Ontario. It threatens to increase the cost of home ownership province-wide. According to a recent study by the C.D. Howe Institute, this tax has resulted in a 16 percent drop in the volume of residential home sales in Toronto. It has meant that home buyers pay an average $15,000 up front every time they move, due to the municipal tax over and above the provincial land transfer tax.
The spread of this tax to other regions of Ontario will increase the cost of home ownership across the province. As a REALTOR®, this will affect your business. Extending the power to levy the municipal LTT to other municipalities in the province would lower home values by adding thousands of dollars to the cost of residential transactions.
In addition, the municipal LTT would price many low- and middle-income Ontarians out of the real estate market entirely. The Ontario Real Estate Association (OREA) believes the municipal LTT is unfair because it forces a small segment of taxpayers -- home buyers -- to fund municipal services designed to benefit all citizens.
OREA is urging the Ontario government to exclude LTT from any legislation that expands municipal taxing authority and to revoke this tax in the city of Toronto."
Ontario Land transfer Tax (subject to change without notice):
Ontario Land Transfer Tax
Up to $55,000 X 0.5% of total property value
From $55,000 to $250,000 X 1% of total property value
From $250,000 to $400,000 X 1.5% of total property value
From $400,000 up X 2% of total property value