Unveiling the Secrets of Using a Land Transfer Tax Calculator

You might be excited to get your home under the best mortgage rates in Canada! With mortgage rates so low in Canada, it seems easy to get a new home. But is it that easy? People will have a mixed reaction to this. But it’s always in your interest that you consider all the upsides and downsides before getting into the home buying process. In the process of buying a new home in Canada, you cannot miss Land Transfer Tax. Introduced in Canada, it is a provincial tax that is levied on the purchase of real property, exclusive of chattels. The amount paid depends on the actual value of the property but almost always forms the largest portion of your closing costs.  You can use a land transfer tax calculator to estimate how much you can expect to pay and why.

Which documents are necessary to get land transfer tax approved?

In paying this land transfer tax, your lawyer will complete a land transfer tax affidavit on your behalf, stating the following:

• The names of the transferor.
• The names of the transferee.
• The legal description of the property.
• The consideration for the transaction, including any assumed mortgages, mortgage-back, property transferred in exchange, etc.
• The number of single-family residences.

After providing all the core information relating to land transfer tax, you can seek the help of mortgage lenders, which can help you get all the details on how to use a land transfer tax calculator for getting through the mortgage estimation process.

Provisions in Paying Land Transfer Tax

The purchaser of the property will pay Canada Land Transfer Tax on the closing date of the property. A seller is never subject to Canada Land Transfer Tax.

On a resale property, the closing date is shortly after the offer has been accepted. This can be a few days or a few weeks.

On a pre-construction property, the closing date is typically three to four years later when the building is complete. Purchasers will be notified a minimum of 21 days ahead of the closing date to prepare their closing expenses and other finances.

Wrapping Up

Hence, if you are planning to get a new home in Canada, then it’s necessary to get approved for the land transfer tax. In many critical land transfer handlings, you might require a land transfer tax calculator. To get all the information on how to use this calculator hassle-free, feel free to visit RateShop.ca!