I just received the following message from Tony Spagnuolo, Barrister & Solicitor regarding Property Transfer Tax Changes:
Good morning everyone. By now you should have heard about the changes in the latest budget regarding the PTT. Here is what we know.
1. There are no changes to the first time home buyer exemption limits;
2. All buyers (whether first time buyers or not) no longer pay PTT on purchases of NEW homes up to $750,000 in value; note the buyer must be a Canadian citizen or a permanent resident; there is a partial exemption for homes between $750,000.00 and $800,000.00;
3. PTT has changed so that there is now a 3% tax on amounts over $2,000,000.00. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.
These are effective for purchases closing today and going forward. We had one client close on a new home yesterday, and we believe they are out of luck. We also had one client that was to close today on a $4,000,000.00 purchase, but we moved the completion to yesterday to save the client $20,000.00 in PTT.
We will soon update the calculators on our website, but for now they are out of date.
Tony Spagnuolo, Barrister & Solicitor
Spagnuolo & Company Lawyers