For those looking to enter Ontario's housing market, the prospect can be intimidating. High home prices coupled with added expenses make it an even greater challenge for both first-time buyers and seasoned ones.
One of the most significant expenses to consider is the land transfer tax (LTT), which can add thousands of dollars to the total cost of a home purchase, all of which has to be paid upfront.
To determine where buyers can expect to pay the least in LTT, Zoocasa conducted a study of 35 markets across Ontario.
Prospective buyers in Toronto face the highest LTT costs, having to pay both provincial and municipal taxes.
The total amount owed depends on the price of the home being purchased.
For example, a first-time buyer in Toronto purchasing a home at the average price of $1,120,362 could pay as much as $29,289 in LTT, the study found.
Repeat buyers in Toronto face even higher costs, with an additional municipal tax adding $37,764 to their LTT bill on a home at the current average price.
While first-time buyers may be eligible for a rebate of up to $4,000 on their LTT, repeat buyers will not qualify for any rebates.
Thankfully, there are a few cities where first-time buyers can expect to pay no LTT at all.
Sault Ste. Marie and Thunder Bay offer LTT savings that exceed the rebate amount, meaning first-time buyers won't have to pay anything.
Sudbury is also a great option, with an average home price of $423,400 incurring an LTT of only $963.
In cities where home prices are lower than the national average, buyers can expect to pay around $6,000 or less in LTT. London, for example, has an average home price of $662,892 and an LTT of $5,733.
Even in cities where the average home price exceeds $1M, such as Ajax, buyers can still find some LTT savings.
For example, a home at the average price of $1,002,020 in Ajax would only incur an LTT of $12,125.
For buyers looking to maximize their LTT savings, here are the top eight Ontario cities with the most affordable LTT:
- Sault Ste Marie: $0
- Thunder Bay: $0
- Sudbury: $943
- North Bay: $1,005
- Kingston: $2,977
- Windsor: $4,008
- St. Catherines: $4,483
- Peterborough: $5,151
However, if you're looking to buy in some of the most expensive cities in Ontario, like Toronto, Oakville, Caledon, Markham, and Richmond Hill, be prepared to face high LTT costs.
8 Ontario Cities Where The Land Transfer Tax Is Much, Much Cheaper Than Toronto
Source: News Article Viral
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