Important LTT news – Land Transfer tax changes have been approved by the city of Toronto and will come into effect March 1, 2017. Some new home buyers will incur additional costs if their closing date is on or after March 1st of this year, while others may pay none.
The new rules for the Land transfer tax is supposed to assist first time home buyers while conversely adding additional taxes to those who have the funds to bridge that gap.
· There will be no LTT applied to the first $368,000 of any home purchased by a first time home buyer.
· There will be an additional %0.5 added to residential properties above 2,000,000.
· There will be an additional %0.5 added to non residential properties over $400,000.
· The maximum rebate for first time home buyers which used to be 2,000 will double to 4,000.
· In addition the stipulations for the home buyers rebate have been restricted to Canadian citizens or permanent residents only.