![]() ![]() The total land transfer tax payable would be $6,475. This tax is paid at a marginal tax rate depending on the purchase price, with the following rates being set in 2017 for the province: Purchase Price of Homeįor example, if you purchase a property at $500,000, the land transfer tax would be a total of. Land transfer taxes usually account for the largest chunk of your closing costs. When you purchase a home in Ontario, including the land that it's built on, you will have to pay Ontario’s land transfer tax. This can mean up to an extra $2960 in costs for home buyers, depending on their mortgage amount and down payment. This tax is paid out at closing, unlike over the term of your mortgage with insurance premiums. Since this tax is only on the provincial portion of HST in Ontario, it is 8% of your total mortgage insurance premium. This means homebuyers that require mortgage insurance with less than a 20% down payment will need to pay this. Ontario is also one of the four Canadian provinces that charge provincial sales tax (PST) on CMHC premiums. You may be able to get multiple quotes from different service providers to help gain an understanding of the fees you would be required to pay. A lot of the above fees vary depending on your location, size of the property and type of the property. The above estimates are based on average properties in Ontario. $1500 - $6000 (more for large plots and complex surveys) Other common fees you can expect to pay on closing include the following. However, depending on if you qualify for a land transfer tax rebate for Ontario and in Toronto, this estimate may be higher than your total closing cost. Generally, budgeting 3%-4% is a good estimate for your home closing cost, with the land transfer tax forming the major component of the cost. ![]()
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