The City of Toronto is not increasing the Land Transfer Tax for first-time buyers which could have added as much as $4,475 to the cost of buying a home.
“The City’s Budget Committee has done the right thing by taking proposals to hike the land transfer tax on first-time buyers off the table. We believe that Mayor Tory understands the importance of keeping Toronto affordable for everyone, especially first-time buyers, and we applaud his leadership in this regard,” said Larry Cerqua, President of the Toronto Real Estate Board.
However, the council is still planning to add to the costs for other buyers with a $750 hike to the LTT, a move opposed by TREB.
“City Hall’s take from this tax has increased by 200 per cent since 2008, from $3,725 to over $11,000 on an average priced property. Hasn’t City Hall already taken enough from home buyers?” said Von Palmer, TREB’s Chief Communications and Government Affairs Officer.
Although the scrapping of the increase for first-time buyers has been welcomed, TREB is urging city councilors to consider raising the threshold for the rebate which eligible first-time buyers can receive.
The current $400,000 threshold is based on the average home price in the city in 2008, far short of the $700,000 than an average home costs today.
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