There are a lot of fees and costs that come with buying a home. In Hamilton, Ontario, one of the extra fees that you pay when buying a home is the Ontario land transfer tax. This is a tax that isn't unique to Ontario. You fill find some semblance of it in other provinces, minus Saskatchewan, Alberta and rural Nova Scotia. So, if you are buying a condo for sale in Windsor ON or Hamilton, you will be paying it. You might be wondering what the land transfer tax is. It's not something you hear that often. Unless you're a Hamilton or Markham real estate agent.
In Ontario, you have to pay a land transfer tax when buying a piece of land or an interest in land. The word land applies to any type of building, building that's going to be constructed or fixtures such as cabinetry or built-in appliances. So, as a potential Hamilton home owner, the land transfer tax is something you will have to pay if you buy a home or land that will be home to a newly built home. It's also applied to condo real estate in Toronto or Hamilton that you might buy.
The amount of land transfer tax that you have to pay is based on the purchase price of the land. If there is any remaining mortgage or debt that comes with the property, that is also added into the equation. You also have to pay GST on the land transfer tax on your Hamilton or Yorkville Toronto real estate property. Unless you are buying a newly built home. In that case, the land transfer tax fee will be less.
The tax rates for the Ontario land transfer tax are 0.5% for homes valued up to $55,000, 1% for homes valued between $55,000 and $250,000, 1.5% for homes above $250,000 and 2% for homes over $400,000.
There are some exceptions to the land transfer tax in Ontario that you might qualify for when buying Hamilton homes or a King West dentist office. The most common and main exemptions include transfers from one person to their family business corporation, certain land transfers between spouses, some transfers of farm land from one family member to another and certain transfers of a life lease to a charity organization from a non-profit organization. So, for the most part, if you're buying a home or condo or some sort of land in Ontario, you will be paying the Ontario land transfer tax. We hope you now know what it is.