RED ALERT: Toronto's Budget Committee wants to raise taxes on First Time Home BuyersThe Toronto Real Estate Board (TREB) is trying to stop the proposed legislation that would have first time buyers in Toronto pay a higher Land Transfer Tax on top of the already insane amount of taxes all buyers in the city must pay when purchasing a home. Currently, buyers in Toronto must pay the municipal land transfer tax, as well as the provincial portion. Toronto Budget Committee is looking to apply a higher portion of the municipal land transfer tax to first time buyers - as if affording a home wasn't hard enough. After saving for a down-payment and paying the existing closing costs currently associated with purchasing a home, its ridiculous to tack on an additional cost to purchasing a home, especially against first time buyers who are usually the ones who need the greatest cost breaks to get them started. We must encourage first time buyers and make the process easier for them once they've been adequately approved for financing. Currently, first time buyers are having trouble entering the low-rise market which includes detached, semi-detached and town homes due to the high demand and low supple in the city.
Although is encouraging to see the city trying to find ways to provide relief to over-taxed citizens, doing it at the cost of first-time buyers who are usually in their 20's or 30's is not the way to go about it. "All Toronto home buyers deserve relief from this hurtful tax, including first-time home buyers," said Dianne Usher, TREB President.
It is my hope that this proposal gets stopped in its tracks and that the Budget Committee focus on other ways to alleviate fund for the city budget that doesn't continue to hurt over-burdened home buyers.