Closing real estate deals goes quicker when you use Axess Law Ontario’s experienced real estate lawyers. We take the worry out of calculating land transfer taxes (LTTs) because we do it all for you.
Land transfer taxes pay for municipal services, but unlike property taxes they only come due once. LTTs are legislated by government — there are no appeals if you think your taxes are too high.
How to Calculate Land Transfer Taxes
Ontario land transfer taxes are based on a percentage of your new home’s purchase price, from 0.5% to 2.5%. You pay extra land taxes in Toronto (municipal land transfer tax or MLTT), on a sliding scale. Taxes apply even if you don’t register the transfer at an Ontario land registry office.
For instance, if your Peterborough condo costs $749,900, you pay Ontario land transfer taxes of $10,223:
- $275 for the first $55,000 (0.5%)
- $1,950 for the next $195,000 (balances from $55,000.01 to 250,000.00 are taxed at 1.0%)
- $6,000 for the next $400,000 (balances from $250,000.01 to $400,000 are taxed at 1.5%)
- $1,980 for the remaining $99,900 (balances over $400,000 up to $2 million are taxed at 2.0%)
- $275 + $1,950 + $6,000 + $1,998 = $10,223
Properties priced at over $2 million pay an additional 2.5% for Ontario LTT.
Get a Tarion warranty when you buy a new construction home.
Toronto residents pay add-on MLTT for single family homes or duplexes of:
- 0.5% of the first $55,000
- 1% for balances up to $250,000
- 1.5% of any balance up to $400,000
- 2% for balances over $400,000 and up to $2 million
- 2.5% for remaining balances.
Rates for multi-family homes are the same except that any balance over $400,000 is taxed at 2%.
Axess Law arranges your land transfer taxes and share of the seller’s annual property taxes. Your in person or video conference call visit with our professional legal advisors takes just minutes of your time.
Paying Land Transfer Taxes
LTTs are owed in a single payment when you complete your real estate purchase and cannot be added to the mortgage or made in installments. Your LTT is based on the purchase price and assumable mortgages or debts alone, not the appraised value of your home.
Discharge existing mortgages when you buy anew.
Exceptions to Ontario Land Transfer Taxes
Certain land transfers are exempt:
- where no consideration (money or other benefits) occurs
- transfers between affiliated corporations
- easements for oil or gas pipelines
- land for municipal water or sewage
- land granted to employers by employees
- property exchanged by spouses for “love and affection”
- family farms or property held by family business corporations
- some life leases
- and more.
Your Axess Law real estate attorney can advise if your transfer qualifies.
Check out financing for life leases.
Why You Need a Lawyer
Land transfer taxes due when buying a home in Ontario can get complicated. Axess Law’s real estate attorneys are skilled at assessing Ontario home buyer taxes to ensure you don’t pay a dime more than you owe.
You could calculate your own taxes, but why bother when you need a licensed real estate lawyer to close Ontario real estate deals anyways.
Our lawyers search property titles for legal ownership.
We do Ontario property title transfers from seller to buyer.
We explain rules and regulations under Ontario real estate law.
We help you meet your real estate contract obligations.
Our lawyers answer all your questions about buyer deposits, property appraisals, home inspections and closing property sales.
You receive an adjustment showing all fees and adjustments paid to purchase your home, from the deposit to the mortgage discharge and land transfer taxes.
Help for First-time Home Buyers
Axess Law saves Toronto buyers up to $8,475 by filing forms for the land transfer tax refund for first-time home buyers.
Help for first-time home buyers.
Canadian citizens and permanent residents get rebates of up to $4,475 for the Municipal Land Transfer Tax when you buy in Toronto, plus $4,000 for provincial land transfer taxes for a first home anywhere in Ontario.
You qualify if you are 18 or over, move into the home within nine months of buying and you or your spouse have never owned property in Canada or elsewhere.
We have lawyers nearby in Greater Toronto Area who can file instant rebate forms when we close real estate purchases.
Who Owes Non-resident Speculation Tax
Are you a foreign buyer of Ontario residential real estate?
Foreign nationals or corporations, taxable entities or non-Canadians who receive transfers of beneficial interests pay a 15% non-resident speculation tax (NRST). NRST applies to Toronto-area Greater Golden Horseshoe properties, up to and including Niagara-on-the-Lake.
You only pay NRST if your property has one to six living units — multiple unit buildings (MURBs) and agricultural, commercial or industrial land are exempt. Our realty attorneys calculate NRST fees and file legally required Return on the Acquisition of a Beneficial Interest in Land forms for you.
Legal Fees to Buy Real Estate in Ontario
Axess Law provides only the legal services you really need. How much does it cost to transfer property title? Compare our costs for a property title transfer in Ontario at traditional law firms and you’ll see Axess Law’s all-inclusive fees are a bargain. Now that’s smart planning.
Our flat rate fees start from just $649 for property title transfers if you already own the property. We close real estate transactions for $999.99 and up for Ontario real estate buyers or $799.99 and up for home sellers.
What You Get for Flat Rate Legal Fees
Our qualified real estate professionals ensure land transfer tax affidavits are accurate and complete when filed.
We advise you if contractor liens or creditor debts are preventing your real estate purchase from closing. We refer you to title insurance companies or insurance brokers to discuss extra steps you can take to prevent property title fraud.
We can also correct land surveys or public record errors that affect your property rights and values.
Finding Real Estate Lawyers in Ontario
Axess Law does remote video calls or can meet you at any of our Axess Law locations in Greater Toronto Area or Ottawa. Our title transfer lawyers are available 7 days a week, day or evening. Book online, pop into our offices or call our 1-647-479-0118 lawyer line to make an appointment (toll free to 1-877-402-4277).