What is charged by the Ontario government, owed upon closing and generally considered the most reviled part of any real estate transaction? If you guessed the land transfer tax, you’d be correct; this levy, which is calculated based on the total home purchase price, can put buyers on the hook for an additional ten of thousands of dollars depending on where they’re purchasing their home.
LTT can present buyers with considerable sticker shock, especially those in Ontario’s most expensive housing markets. Those purchasing a home in a more moderately priced housing market can expect to pay roughly $5,000 to $7,000 in LTT, the calculations reveal. Check out the infographic below to see how the average amount of LTT differs by market in Ontario, for both first-time and repeat home buyers.
It may come as a surprise to some buyers that LTT can’t be rolled into their mortgage, or that they can’t use other home loans, such as bridge financing, to cover it. It must be paid in cash upon the closing of the transaction in order for them to have the keys in hand. Sellers do not pay LTT,
Top 5 cities where you’ll pay the most land transfer tax
1 – City of Toronto: $27,531
2 – Oakville: $17,750
3 – Richmond Hill: $16,571
4 – Vaughan: $16,369
5 – Markham: $14,424
Top 5 cities where you’ll pay the least land transfer tax
1 – Sault Ste. Marie: $1,374
2 – Thunder Bay: $2,090
3 – North Bay: $2,359
4 – Sudbury: $2,635
5 – Windsor – Essex: $2,949
Rankings apply to repeat home buyers.
Thanks for the research Penelope Graham