We don’t have to tell you that homes in Toronto are more expensive than homes in Burlington. We’ve covered this issue before and you already knew that Toronto’s cost-of-everything is higher. But, here’s something you probably didn’t know: Burlington’s land transfer tax is A LOT lower.
It can literally save you thousands of dollars before you’ve even booked a Uhaul. Yet this seems to be often overlooked by Buyers who are set on staying in the city.
Let’s take a closer look at how much money you can save by moving out…
Burlington’s Land Transfer Tax, as Compared to Toronto
Let’s say you find a $500,000 home in Toronto (Ha! -cough- Sorry). The land transfer tax in Toronto would be $12,200… whereas in Burlington it would be $6475. That’s a savings of $5,725. And the savings obviously go up as the value of the property increases.
Why is the Land Transfer Tax So Much in Toronto
Torontonians are unfortunate enough to get double-dipped when it comes to land transfer tax.
They pay the same provincial tax as everyone else, but, lucky them, they also get their own municipal land transfer tax, which pretty much doubles the costs across the board.
Here’s how it breaks down, according to Ratehub:
|Price||Toronto Tax||Burlington Tax||You Save|
To give you a bit more of a clear picture of exactly how this plays out in the real world, let’s use real numbers
|Land Transfer Tax||$31,985||$15,505|
You Save: $16,480
Condos (Yes, you pay land transfer tax on a condo)
|Land Transfer Tax||$13,532||$4,801|
You Save: $8,731
What Exactly is Land Transfer Tax and When Do I Pay it?
Buyers in Ontario have to pay the land transfer tax, on the purchase of a new house or condo. The seller doesn’t have to pay, until they buy another house.
It’s paid on the date the land (or condo) is transferred from one party to another, which is the closing date. So, in Burlington, you’ve saved $16,480 before the Rogers Guy has even hooked up your modem at the new house.
Get More. Live more. Live in Burlington
Of course, that’s not the only difference that Burlington residents get to enjoy. Come see how much further your money can go.
Erin Hayes (Sales Representative) and David Ferrari (Broker) are Your Burlington Neighbourhoods Team with RE/MAX Realty Enterprises Inc. and we offer no obligation neighbourhood tours to those who are new to the city and need more information before they decide to start shopping for a new home.
Burlington was recently named the 1# medium-size city in Canada by Moneysense Magazine for the incredible fourth straight year.