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Transferring the Title on a Home Purchase is an Additional Cost and Differs Throughout Canada
No two Provinces charge their Transfer Tax using the same calculations. There are unique differences across Canada. Fortunately, there are on-line calculators in each province to help determine the additional cost to the buyer.
BRITISH COLUMBIA
When a property is registered at the Land Titles Office, the buyer must pay a Property Transfer Tax based on the purchase price of the home in B.C.
ALBERTA
Alberta is one Province that does not have a Transfer Tax. At closing it does have a Property Registration Fee, which is significantly lower than other Provinces.
SASKATCHEWAN
Saskatchewan does not charge a Transfer Tax on closing. They do charge other fees to register the title of the property.
MANITOBA
In Manitoba Land transfer tax is calculated based on the Fair Market Value of the property as a whole on the date of registration of a transfer of title. As there is no tax on a transfer under $30,000, properties are assessed with land and improvements combined.
ONTARIO
The Land Transfer Tax in Ontario is a Provincial fee based on the purchase price of the home and due on closing. As well, in the City of Toronto (with a postal code beginning with M) there is also a Municipal Transfer Tax. This does not apply anywhere else in the Province. This means in the City of Toronto only, a home will cost double in Transfer Taxes
QUEBEC
In Quebec La Taxe de Bienvenue or Welcome Tax is a duty levied to transfer properties. The amount is based on the higher of the property valuation or the purchase price. This is not due on closing. An invoice will be sent to the new homeowner 3-6 months after closing.
NOVA SCOTIA
When purchasing a home in Nova Scotia the province levies a Provincial Property Transfer Tax (PPTT) which is based the purchase price of the home.
Effective April 1, a transfer tax of 5% of the property’s value will be levied on non-residents of the province who purchase a home and do not move into it within six months of the closing date.
In addition, property taxes of $2 per $100 of assessed value of residential properties owned by non-residents will be levied.
The tax won’t apply to buildings with more than three units or those rented to Nova Scotians year round.
NEW BRUNSWICK
In New Brunswick the Province charges a Land Transfer Tax calculated based on the higher of the Assessed Value of the home or the actual Purchase Price.
NEWFOUNDLAND AND LABRADOR
The Province charges a Land Transfer Tax based on the Purchase Price of the home.
GETTING ADVICE
If the Corporation is covering the closing costs for a home purchase in Canada, contact TransferEASE to discuss options for your policy.