New MLTT Harmonization in Toronto

Last night the City of Toronto passed their 2017 budget, including the MLTT harmonization. 

While we're still awaiting final word, we believe the final changes to harmonize the Metro Land Transfer Tax to the Ontario LTT, will be very close those proposed in December 2016.

In addition to the MLTT rate changes, Toronto proposed to amend the first-time homebuyer rebate program eligibility rules to make them consistent with the current Ontario Land Transfer Tax (LTT) rules by restricting rebate eligibility to Canadian citizens or permanent residents of Canada.

Two important differences between the Toronto's  proposals and the new Provincial rules:

• The proposed changes did not include grandparenting provisions to exempt transactions that will have been initiated prior to March 1, 2017

• Toronto will consider implementing an eligibility cap for the first time home buyer rebate based on a maximum eligible transaction price (amount yet to be determined).

We are in touch with the City of Toronto to get the final details and are working on the revised rates in RealtiWeb Ontario.  We'll keep you posted on our progress.