65% of Torontonians say Toronto’s proposed land transfer tax is unacceptable according to a Decima poll cited by Inside Toronto.

If Toronto’s new land transfer tax passes, the costs of home ownership in the city will get even uglier.

Home buyers in Toronto can look forward to paying:

• Land Transfer Tax
• Cost:  Up to 4% total
• Includes Ontario’s current tax and Toronto’s proposed tax
• A first-time home buyers refund may apply
• Mortgage Default Insurance
• Cost:  Up to 3.7%
• Applies when your down payment is less than 20%
• Depends on amortization and down payment
• GST
• Cost:  6%
• Applies to newly constructed homes
• A GST New Housing Rebate may apply
• Lender Fees
• Cost:  Varies.  Roughly similar to mortgage default insurance
• For high risk or self-insured mortgages
• Typically replaces mortgage default insurance
• Realtor Fees
• Cost:  Roughly 4-5%
• Plus GST
• Appraisal Fees
• Cost:  Roughly $200-$250
• Sometimes paid by the lender
• Title Insurance
• Cost:  Roughly $250-$275
• Home Inspection
• Cost:  Roughly $250-$500
• Survey Costs
• Cost:  Roughly $500-$650
• Often provided by the vendor
• Legal Fees
• Cost:  Roughly $600-$1000
• Plus disbursements
• Utility Service Charges
• Cost:  Roughly $150-$250
• For the connection of electricity, gas, cable/satellite and telephone service
• Moving Costs
• Cost:  Varies

Don’t forget your down payment either–assuming you have one. 

Adding salt to the wound is that many of these costs cannot be rolled into a mortgage.  That means we may very well see cash-back mortgages become quite popular in a year or two.

Last modified: April 25, 2014