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For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

New Information Regarding the Toronto Land Transfer Tax Rebates Provided By City of Toronto

New Information Regarding the Toronto Land Transfer Tax Rebates Provided By City of Toronto

The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the "spring of 2008", but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect.

Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.

Details

According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

• Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and
• First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet's collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

More Information

Complete details of the Toronto land transfer tax are available here or by calling the City of Toronto at 416-338-0338.

Read More recent and past articles about Toronto Land Transfer Tax or at my site

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

City of Toronto's increase to the Land Transfer Tax

City of Toronto's increase to the Land Transfer Tax:

Solutions for Mortgages will take you to a lender who will now cover the cost of the tax for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years, subject to the following:

1. Maximum payout amount is $15,000 or 1.5% of the mortgage amount, whichever is less

2. Applications must be submitted between November 22 2007 and March 11 2008, and must fund by March 21, 2008

3. Offer is applicable only to Toronto properties which were affected by the new City of Toronto Land Transfer Tax

4. Purchase transactions only

Eligible rates and terms as follows:

1. 5 year Fixed Rate Mortgage with a rate discount of 1.01% off the posted rate

2. 7 year Fixed Rate Mortgage with a rate discount of 1.22% off the posted rate

3. Not available in conjunction with any other offers

4. Funds are paid directly to the customer

5. Clients must be approved by this lender and close only with Solutions for Mortgages Inc.

6. Real Estate agents get $200.00 referral fee.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns

RECO announces first-time buyers of Ontario resale homes willo benefit from new tax measure

First-time buyers of resale homes to benefit from new tax measure

News Release Government of Ontario Ministry of Finance

ONTARIO EXPANDS LAND TRANSFER TAX REFUND PROGRAM

First-time buyers of resale homes to benefit from new tax measure

The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.

"Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.

Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.

The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario's economic advantage and help manufacturers and other sectors challenged by current economic conditions.

For more information please visit: http://www.gov.on.ca/

First Time Buyers Information

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Just announced, 1st time Buyers in Ontario will be eligable for Land Transfer Tax Refund!

Just in time for the holidays - First time homebuyers, in Ontario, will be eligible for a land transfer tax refund (up to $2000).

This was announced in yesterday's mini budget. Unfortunately, full details are not yet available on the government's website but I'm sure they will be soon: browse here.

Despite the drop in Bank Prime lending rates, fixed rate mortgages have remained unchanged.

The rate on variable rate mortgages fluctuates with prime, best I have seen is 5.40%.

I hope you find time to enjoy the lead up to the holidays,

Mark

Current mortage interest rates with some mortgage brokers I know

December 14, 2007

Prime Rate 6.00%
Variable Rate Prime less .60%
1 year closed 5.55%
3 year closed 5.70%
5 year closed 5.85%*
7 year closed 5.88%*
10 year closed 5.95%*
25 year closed 6.90%

* for mortgage of $500,000 or greater; slightly higher rates for lower mortgage amounts
Information subject to change without prior notice. APR.E.&O.E.

Read more about Land Transfer Tax in Ontario

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns

TD/Canada Trust Rolls out new plan to help cover Toronto Land Transfer tax on mortgages until March 21, 2008

This is in response to the Toronto Land Transfer Tax

Toronto's comfortable mortgage now at TD Canada Trust: bank will cover the Toronto land transfer tax on mortgages until March 21, 2008

Homebuyers have until March 21, 2008 - No requirement to have a current account with TD Canada Trust - Choice of two mortgages available

TD Canada Trust announced today that it will cover the new City of Toronto land transfer tax on behalf of its customers when they arrange a mortgage between November 22, 2007 and March 21, 2008.

In response to the City of Toronto's increase to the land transfer tax, TD Canada Trust will provide up to 1.50% of the mortgage amount in cash to cover this expense for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years.

Homebuyers do not have to have a current account with TD Canada Trust in order to be eligible for this offer.

Who's eligible?:

• Those who arrange and fund a 5 year Special Fixed Rate Mortgage or a 7 Year Special Fixed Rate Mortgage between November 22, 2007 and March 21, 2008.
• Those purchasing Toronto properties which were affected by the new City of Toronto Land Transfer Tax

"We're very pleased to be able to provide this limited time offer to those who are buying a home in Toronto between now and March 21, 2008," said Joan Dal Bianco, Vice President, Real Estate Secured Lending, TD Canada Trust. "We know that our offer means one less thing to worry about and will help take the pressure off of purchasing for homebuyers impacted by the land transfer tax increase."

The offer is not available in conjunction with any other offers and the maximum cash amount is $15,000.

Mark's comments: I am guessing that you would not be eligable for any mortgage interest rate discounts if you take advantage of the above deal. I will check into this and re-post if there is a change.

Read more about Toronto Land Transfer Tax and use an online calculator

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Toronto new Land Transfer Tax - It's coming soon, how will this impact you?

Toronto imposes new Land Transfer Tax - What does this means to home buyers?

Toronto, Ontario - After much debate for months and months, here is the new Toronto Land Transfer Tax that was just passed by Council on 22 October 2007 and takes effect on 1 February 2008. Transactions entered into prior to the end of the year will be fully exempt whenever they close. For the first two months of the year, the deals must close before February 1st 2008. After that, the full tax applies. The new tax is an addition to the existing land transfer tax. The extra tax is payable on residential and commercial property purchases, including vacant land. So how will this affect the real estate market in Toronto an surrounding areas?

EXISTING Ontario Land Transfer Tax:

Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser. Current tax rates (effective from June 1, 1989)

• 0.5% of the value of consideration for the transfer up to and including $55,000,
• 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
• 1.5% of the value of the consideration which exceeds $250,000, and
• 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

ADDITIONAL NEW Land Transfer Tax :

New tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008).

• 0.5% on first $55,000,
• 1% on next $345,000, and
• 2% on portion over $400,000

Examples of new Land Transfer Tax ($)
Home Price	Ontario LTT	Toronto LTT	Total LTT
250,000	2,225	2,225	4,450
350,000	3,725	3,225	6,950
450,000	5,475	4,725	10,200
500,000	6,475	5,725	12,200

For first time purchasers: A rebate of up to $3,725 will apply to first-time purchasers of both new and existing homes. This means a full rebate for first-time buyers of homes valued at $400,000 or less. For example, a first-time purchaser of a home valued at $600,000 would pay land transfer tax according to the scale shown above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 would get a full rebate on the land transfer tax.

Why Toronto imposed new land transfer tax?

City of Toronto's projected revenue shortfall for 2008 budget is approximately $415 million. The city will be able to raise additional $155 million by Land Transfer tax and another $20 million by the new Toronto Vehicle ownership tax. That means a revenue shortfall of perhaps $239 million for next year's budget. This may translate into new taxes on property, alcohol, road tolls, entertainment, parking, billboards, etc.

Toronto is the ONLY jurisdiction with two home buying taxes, highest land transfer taxes in Canada and the second highest in North America.

What may happen now?

A second land transfer tax (LTT) on top of current provincial LTT, is almost 100% increase which might slow down real estate activity for short period of time only.

Home buyers will have less money for down payment, furniture, appliances or renovations. This could ultimately cost over $15,000 for an average buyer when coupled with other real estate closing costs and goods that follow home's purchase. First-time buyers will not get affected as they will NOT pay the City's new land transfer tax on first $400,000 of their property's price.

Since there is no new local home buying tax in 905 region, more buyers and investors will move out of Toronto. Real estate markets outside Toronto will grow more as many investors and buyers will move into Mississauga, Oakville, Milton, Brampton, Markham, Richmond Hill, Ajax and Pickering.

Read more about the Toronto Land Transfer Tax Link to the new Toronto Land Transfer Tax Calculator

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino P. Eng. Broker Specializing in Residential & Investment Real Estate Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS RE/MAX Realty Specialists Inc. Providing Full-Time Professional Real Estate Services since 1987 ( BUS 905-828-3434 2 FAX 905-828-2829 ÈCELL 416-520-1577 › E-MAIL : mark@mississauga4sale.com 8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Toronto Land Transfer Tax - Slight adjustment in calculation

The Toronto Land Transfer Tax rate was adjusted down, slightly. See the new calcuation at this page of my site.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

TREB REALTORS® Disappointed that Public Opinion on Land Transfer Tax Ignored

REALTORS® Disappointed that Public Opinion on Land Transfer Tax Ignored

TORONTO, ONTARIO--(Marketwire - Oct. 24, 2007) - Toronto's REALTORS® are concerned about the potential impact of the City of Toronto's recently approved second land transfer tax and disappointed that the public's opinion of this tax was ignored.

"REALTORS® have been working hard to provide the facts about this unfair idea and the public responded with action. An overwhelming majority of Torontonians believe that this tax is a bad idea," said Maureen O'Neill, President of the Toronto Real Estate Board (TREB). "The public made their voices heard loud and clear but, unfortunately, they were ignored."

A poll conducted by the Environics Research Group, commissioned in part by TREB, showed that 62 per cent of Torontonians think that a land transfer tax is an unfair solution to the City's financial challenge and that 61 per cent of Torontonians wanted their Councillor to vote against it.

"Torontonians deserve to be treated fairly. A second land transfer tax is an extremely unfair way to address the City's financial challenges. It forces a relatively small group, home buyers, to pay for services for everyone. That, simply, is unfair," added O'Neill.

TREB also raised concerns about the potential impact of a second land transfer tax.

"Home ownership is something that the City should be trying to encourage, not discourage. The second land transfer tax will make it more difficult for people to achieve that dream and it could hurt property values for some current home owners," said O'Neill. "It could also have far-reaching impacts on the City's whole economy by reducing the amount of money that home buyers have to spend on things like furniture, renovations, and energy-efficiency upgrades."

TREB is disappointed that the City is choosing new taxes instead of more prudent solutions. Specifically, TREB believes that the City should have waited for the Mayor's panel to report on alternative options. The Environics poll showed that 78 per cent of Torontonians think that City Council should have waited until the Mayor's panel finished its work before deciding on new taxes.

"This is a classic example of putting the cart before the horse: tax now, save later. That, simply, doesn't make sense," said O'Neill. "The Mayor appointed a panel to look for savings and other options and we applaud him for that. The panel is something that TREB, and the public, called for, but they should have been allowed to finish their work so that fair options could have been considered instead of a land transfer tax."

TREB has consistently supported fair options for dealing with the City's financial challenges, including a more fair deal with senior levels of government, and continues to support City efforts in this regard.

"Unfortunately, we disagree with the City on the land transfer tax, and we will continue to oppose it. We continue to believe that it is not fair," said O'Neill. "Let's not forget that this tax doesn't solve the City's financial challenge. We look forward to working with the City towards fair solutions. We will continue to push for a fair deal for Toronto from senior levels of government, as we always have."

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are available on http://www.torontorealestateboard.com/.

Read more about the New Toronto Land Transfer Tax

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



• On-Line Real Estate Newsletter sign up



• See seasonal housing patterns

Maybe it's time to move to Mississauga as New Toronto Land Transfer Tax takes effect

Maybe it's time to move to Mississauga as New Toronto Land Transfer Tax takes effect

Highlights:

• The new tax is 0.5 per cent of the first $55,000 of a home's value, 1 per cent on the next $345,000 and 2 per cent on any portion over $400,000. But first-time buyers pay nothing on the first $400,000.
• You have until Dec. 31, 2007 to buy, and Feb. 1, 2008 to close
• The tax affects only the purchase (not the seller) of real estate in Metro Toronto, not Mississauga
• Maybe it's time you thought about moving to Mississauga!

If the average price of a home is about $400,000 the new tax in Toronto will add about 4475 to the purchase price. This means if you purchase the same home in Mississauga you will save nearly $5000!

Some scramble to close deals in 'bit of panic' over new tax; others wonder if prices will fall

Oct 24, 2007 04:30 AM Joanna Smith Staff Reporter Toronto Star

Suren Mahadevan felt forced into a snap decision.

As confused as any first-time buyer, Mahadevan was thinking carefully about whether to buy one big house where his retired parents could live with him or two condos, one for them and one for him.

But when his real estate broker told him the city of Toronto's land transfer tax was probably on its way, he made his move.

"It just made me jump on it a little bit sooner," said the 33-year-old real-estate appraiser who spent $170,000 on one condo on Monday, even before he knew whether there would be rebates for first-time buyers. "... you just pull the trigger and get one as quickly as possible."

Under the new tax approved by Toronto city council Monday night, potential homeowners have until Dec. 31 to buy, and Feb. 1, 2008 to close on their new home, to avoid paying up to 2 per cent in taxes.

The new levy will add thousands of dollars to the price of most houses in the city. If enough buyers feel the pressure, then sellers will continue to rule the market until the end of the year. Some realtors predict the market will slow down once the tax comes into effect.

"I think there will be (an increase in sales) in the next couple of months but after that it will slow down more than it would have normally," said real estate broker Darshan Sivanandarajah, who advised Mahadevan, who is now looking for a second condo, to buy now.

"I told them, `If you're going to buy for sure, you might as well do it before the land transfer tax," said Sivanandarajah, who works for Re/Max Crossroads Realty Inc., noting one young couple decided to buy their first home several months ahead of their wedding.

Another realtor, Sandra Rinomato, said that there might be "a bit of a panic" among buyers rushing to close the deal before the deadline.

"I don't know how that will necessarily affect the market compared to what it would have been and that's something that nobody will know," said Rinomato, who is also the host of the reality-television show Property Virgins. "Unless sales skyrocket, we won't ever be able to measure it effectively."

Like many other realtors, Rinomato said she is more concerned with any effects the new tax will have on sellers. She said a homeowner wanting to sell for $415,000, for example, "will have a very hard time getting over $399,999, because that's the cap for the land-transfer tax rebate for first-time buyers."

The new tax is 0.5 per cent of the first $55,000 of a home's value, 1 per cent on the next $345,000 and 2 per cent on any portion over $400,000. But first-time buyers pay nothing on the first $400,000.

Real estate broker Rachel O'Hearn said the market might see "a little flurry effect" because buyers were waiting on the new tax.

"I think now that the decision has been made, it's going to throw people into action to get it done before the end of the year," said O'Hearn, who works for Leslie Benczik Team-Re/Max All-Stars Realty Inc. in the downtown area. "And then we'll see what kind of effect it has on the market after that."

Scott Kavanagh was planning to wait until spring to buy a home in Toronto. "I'll definitely start looking more aggressively now," said Kavanagh, a 28-year-old events producer who owns a house in Stouffville. "I think it's significant enough to push me to move before the end of the year."



Some realtors are concerned sellers on the outer edges of Toronto will be adversely affected, because buyers may opt to buy elsewhere in the GTA, where there's no new tax.

Kavanagh said it has crossed his mind that if the market does slow down he might actually get a better deal in 2008 – especially if there's a spike in sales now.

"I think that's a question that will be on everyone's shoulders," he said. "There are so many variables that come into play now."

Read more about the new Toronto Land Transfer Tax

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Is the Land Transfer Tax (LTT) Rebate Program for You?

Land Transfer Tax (LTT) Rebate Program In Canada

How the Program works

This program is for First-time home buyers who purchase a newly constructed home will receive a rebate of the Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum LTT rebate is $2,000.

Details of the program

The 1996 Ontario Budget announced a special one-year provision to the LTT that was renewed every year and is now a permanent program.

FIRST-TIME BUYERS who purchase a NEWLY CONSTRUCTED HOME will receive a rebate of the LTT. All other buyers will continue to pay the full applicable tax.

The maximum rebate is $2000. If an individual owns less than 100% interest in the newly built home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.

A rebate of $2,000 is equivalent to the LTT payable on a purchase price of $227,500 (net of GST).

Only individuals who are at least 18 years of age, have not (or spouse) previously owned an interest in a home anywhere qualify for the rebate.

Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the LTT do not qualify.

A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:

0.5% on amounts up to and including $55,000;

+1.0% on the amount exceeding $55,000 up to and including $250,000;

+1.5% on amounts above $250,000 up to and including $400,000 for residential / +1.5% on the amount in excess of $250,000 for business properties;

+2.0% of the amount in excess of $400,000. [residential only] For more information call the Ontario Finance Ministry at 1-800-263-7965 or access through

www.gov.on.ca/FIN/english/bke-ltt.htm

These four portions added up together total the LTT payable. As simple formula is as follows:

**Purchase Price Calculation of LTT

$0 to $55,000 .005 x purchase price

$55,001 to $250,000 (.01 x purchase price) minus 275

$250,001 to $400,000 residential (.015 x purchase price) minus 1525

$250,001 plus (business)

$400,001 plus (residential only) (.02 x purchase price) minus 3525

*If the purchase price falls within this range, then apply the appropriate formula to the purchase price. For example, on a $200,000 property, the LTT calculation would be [(.01 x $200,000) minus 275 = $1,725].

Or use my online land transfer tax calculator

Make the Right Move. Consult a Toronto Real Estate Board REALTOR.

www.TorontoRealEstateBoard.com

Read more about Land Transfer Tax here:

I have an online land transfer tax calculator at my site
For more information please contact A. Mark Argentino

A. Mark Argentino Associate Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS 905-828-3434
FAX 905-828-2829
E-MAIL mark@mississauga4sale.com
Website: Mississauga4Sale.com