Are you thinking of buying real estate and trying to calculate the additional costs involved with your purchase? Land transfer tax is something you cannot avoid. Calculating the exact amount is based on the purchase price, which can fluctuate hourly (based on how good of a negotiator you are). Being cognizant of the different types of Land Transfer Tax (provincial and municipal) and whether your purchase is subject to one or both of these types of taxes, can impact how much cash you need to have in the bank leading up to the closing date.
One of the most important points that first-time home buyers should note is that the eligibility towards the $5725 in instant rebates that are available are only available to purchasers who have never owned real estate anywhere else in the world and intend on occupying the property purchased as their principal residence (as opposed to an investment property that will be rented out).
Our friend David Feld from Feld Kalia gives us expert answers on what Land Transfer Tax and has a convenient and useful land transfer tax calculator on his website at www.WeAreLaw.ca. You’ll note that he’s even included the cost of his team’s legal fee and title insurance in the calculator.