When you buy a house or other property, you have to pay a land transfer cost to the government. This is a tax that the government charges on property purchases. The amount of the land transfer cost varies depending on the province you live in and the price of the property.
How Much Does It Cost?
In Ontario, the land transfer cost is calculated based on the purchase price of the property. For properties worth less than $700,000, the land transfer cost is 1.5% of the purchase price. For properties worth more than $700,000, the land transfer cost is 2.5% of the purchase price.
- If you buy a property worth $600,000, your land transfer cost will be $9,000 (1.5% of $600,000).
- If you buy a property worth $1 million, your land transfer cost will be $25,000 (2.5% of $1 million).
Is There Any Way to Avoid It?
Yes! If you are a first-time homebuyer, you may be eligible for a land transfer tax rebate.
What Else Do I Need to Know?
The land transfer cost is just one of many costs involved in buying a property. You will also need to pay for things like legal fees, appraisal fees, and title insurance. It is important to factor in all of these costs when you are budgeting for your home purchase.
How Can I Learn More?
If you are buying a property, it is a good idea to get help from a real estate agent. A real estate agent can help you understand the land transfer cost and other costs involved in buying a property.
I'm Ready to Buy a Property!
If you are ready to buy a property, contact Balo Real Estate today. We can help you find the perfect property and make the homebuying process as smooth as possible.