In response to published reports that the City’s Budget Committee is considering eliminating the Land Transfer Tax on the first $200,000 of a property but also the rebate for Toronto first-time buyers on the first $400,000 of a property, the Toronto Real Estate Board has issued a press release raising concerns over having first-time buyers paying more tax under the Land Transfer Tax than they would now.
“Realtors are encouraged that the City’s Budget Chief and Budget Committee are actively considering options to provide relief, to home buyers, from the Home Buying Tax; however, we believe strongly that all Toronto home buyers deserve relief from this hurtful tax, including first-time home buyers,” said the president of the Toronto Real Estate Board, Dianne Usher.
She continued, “We have pointed out many times that the Home Buying Tax hurts people when they can least afford it. First-time home buyers are a perfect example of this. Many first-time home buyers struggle to save for a down payment for that first home they are dreaming of. Every penny counts to them, and the Home Buying Tax makes that dream more difficult to achieve.”
Von Palmer, the Toronto Real Estate Board’s Chief Government and Public Affairs Officer, said that, “Even first-time home buyers purchasing below average-priced properties are being forced to pay thousands of dollars in Toronto Home Buying tax. Any proposal to eliminate the first-time buyer rebate would make the situation worse. First time home buyers deserve more relief, not less.”