If Durham Region wasn't already one of the most attractive markets for Toronto area buyers, there is even more incentive now that Toronto's Land Transfer Tax is going up.
Toronto Council has approved (February 15, 2017 Council meeting) an increase to its Municipal Land Transfer Tax (LTT) that will affect properties sold in the city effective March 1, 2017 (closing on Mar 1 or later).
The changes were proposed last December, and increased the tax by 0.5% on residential properties for the portion valued between $250,000 and $400,000. This means $750 more on properties valued at $400,000 or more.
It also increased the LTT on residential properties by 0.5% on the portion valued above $2,000,000.
Changes were also made to the rebate available to first-time buyers. Now, they are eligible to receive up to $4,475 (up from $3,725). Further, this rebate will only be available to Canadian citizens or permanent residents.
Thanks to lobbying from the Toronto Real Estate Board, first-time buyers will not see any increase in LTT. The proposed changes to the LTT, made in December, called for limited eligibility of first-time buyers as well as a cap of only $3,725.
Of note, this LTT is only applicable to properties sold in the City of Toronto. That means that a buyer considering spending $800,000 on a home would have to pay $12,475.00 Provincial Land Transfer Tax in Durham Region, but would have to pay an additional $12,475.00 if they bought in the City of Toronto.