Understanding Land Transfer Tax in Ontario When you buy a home or any real estate in Ontario, you must pay a Land Transfer Tax (LTT) to the provincial government. This tax is calculated based on the purchase price of the property and is due at closing—the day your lawyer transfers the title into your name. For buyers in the City of Toronto, there’s an additional municipal land transfer tax, meaning Toronto homebuyers pay two sets of taxes—provincial and municipal. How Is Land Transfer Tax Calculated? Ontario uses a tiered tax rate system. The higher your purchase price, the higher the percentage you pay on each bracket: Purchase Price Range Tax Rate Up to $55,000 0.5% $55,000 to $250,000 1.0% $250,000 to $400,000 1.5% $400,000 to $2,000,000 2.0% Over $2,000,000 (for one or two single-family residences) 2.5% Example: If you buy a home for $600,000, your Ontario land transfer tax is roughly $8,475. If the same home is in Toronto, you’d also pay a municipal LTT calculated using the ...
Falling behind on mortgage payments is a stressful experience for any homeowner. In Ontario, when a borrower defaults on their mortgage, lenders have legal remedies to recover the money they are owed. The most common of these is the "power of sale," a legal process that allows a lender to force the sale of a property. While it may sound similar, a power of sale is fundamentally different from a foreclosure. Understanding this distinction, along with the detailed steps and timelines involved, is crucial for both borrowers and potential buyers navigating Ontario's real estate market. Power of sale vs. foreclosure: What's the difference? The primary difference between a power of sale and a foreclosure in Ontario lies in the property's ownership. Power of Sale: The borrower retains ownership of the property throughout the sale process. The lender acts as a vendor to sell the property and collect the outstanding debt. Once the sale is finalized, any surplus funds—after...