Land Transfer Tax in Mississauga – The Bigger Picture
Land Transfer Tax in Mississauga – Something we can do without
This may well be one of the worst nightmares for realtors and real estate consumers alike – land transfer tax spreading across Ontario. According to the Ontario Real Estate Association (OREA), the governing Liberal party will allow municipalities to implement their own land transfer tax. However, Ontario government officials deny anything has been decided as yet.
When a buyer purchases a $600,000 home in Toronto, they have to pay $16,200 tax to transfer the property, $7,725 of which goes to the City of Toronto. The high land transfer tax in Toronto has indirectly lead to a boom in Toronto’s suburban real estate, including Mississauga, and other parts of the GTA. Many people choose to buy much more expensive homes in Mississauga (Toronto’s closest suburb), due to this very reason.
Land Transfer Tax in Mississauga – Could Scare Buyers Away
With the introduction of the land transfer tax, there will definitely be some decline in the charm of buying larger properties outside of Toronto. But the flip side of the coin is that, it will also create a surge in buying before the tax is implemented.
I myself among my fellow realtors have no doubt that once the province approves the tax, municipalities will take advantage of it. “It’ just a matter of time before they levy the tax,” says Matthew Thornton, director of government relations with OREA.
Once this tax rolls out, Ontario home buyers will end up paying the highest land transfer tax in North America. The ripple effect is that it will potentially reduce real estate sales across Ontario. After Toronto was slammed with the tax, over 38,000 Toronto housing transactions were not complete over five years, because of the tax. While supply and demand has kept Toronto real estate market thriving and healthy despite the hefty land transfer tax, the same is not true for the rest of Ontario.
Land Transfer Tax Mississauga – How will it impact home buying?
Surely land transfer tax is not the only factor that scares away home buyers, but for people who are uncertain about becoming a home owner in the first place, or simply have less cash to work with, will think twice before buying a property in Mississauga, or elsewhere in the GTA, once the tax is put into effect.
People, who have to buy, will still go ahead and buy regardless of the tax, but they will definitely not be happy about the tax! Some prudent investors will grab the bull by the horns and buy a home or a condo right now, while the tax is yet to come into force. You can use land transfer tax calculators to figure out the current tax value of a property.