Provincial Sales Tax on Mortgage Insurance
If your mortgage is insured, you will be required to pay the applicable taxes on the insurance premium on closing. While the insurance premium can be added to the mortgage amount, the tax must be paid at closing.
HST is payable on the purchase of a newly constructed homes only. If you are purchasing a new home make sure you know who pays this, you or the builder. On the offer the purchase price will say “Plus HST” or “HST Included” and who gets any HST rebates. Many builders have included this cost into the purchase price so the buyer does not have to come up with it at closing.
Land Transfer Tax
In Ontario. a land transfer tax payable by the purchaser. The amount varies depending on the province. Land transfer tax is based on the purchase price. First time home buyers purchasing a new or re-sale home may be entitled to a refund up to $2,000.00. Land transfer tax varies from province to province. In Ontario the Land transfer tax are calculated as show:
|Land Transfer Tax Rate||Example: Sale Price of $450,000|
|Value||Tax Rate||Calculation||Tax Payable|
|$ 0 – 55,ooo||.005 (0.5$)||$ 55,000 x .005||$ 275|
|$ 55,000 – 250,000||.01 (1.0%)||$ 195,000 x .010||$ +1,950|
|$ 250,000 – 400,000||.015 (1.5%)||$ 150,000 x .015||$ +2,250|
|$ 400,000 +||.015 + .005||$ 50,000 x .020||$ +1,000|