The Toronto Real Estate Board has slated the proposal that was brought forward for the Land Transfer Tax in Toronto to be changed. The proposed amendment was criticized by the Board as first-time buyers will have to face the aftermath.
The proposals compromised of ; increments of an additional LTT rate on the percentage of a property worth $250,000 to $400,000.Increase the LTT rate from 2 per cent to 2.5 per cent on homes valued more than $2 million, have the refund for Land Transfer Tax consistent for those buying homes for the first time, with the rebate threshold of $4,000 for the Provincial Land Transfer Tax, and get rid of first-time buyer’s reimbursement for those buying homes above the standard price set by the City Council.
The proposal will be put forward and addressed by the Executive Committee in Toronto this week, however, the president of TREB, Larry Cerqua said they will be in disagreement with the recent recap of the housing issue the city is facing.
Cerqua cautioned that; “The proposed changes to the City of Toronto’s Land Transfer Tax are a cash grab, and would make all Toronto home buyers pay more Toronto Land Transfer Tax, which means that the City is proposing to make home ownership in Toronto even more expensive.”
The figures that were displayed by TREB showed that buyers of averagely priced home in Toronto pay an amount of $11,000 in LTT at the moment, with the changes in effect, an addition 7 per cent will be added to the cost, allowing first-time buyers to pay an extra 4 per cent after the suggested increase to first time buyer’s rebate.
City Hall should be concentrated on making sure home ownership in the city is much more affordable, rather than more expensive, and also fewer people should be relying on tax. The Chief Communications and Government Affairs Office for TREB, Von Palmer said; “TREB will be participating in the City’s upcoming budget consultations and will be raising concerns about these proposals if they move forward.”