Land Transfer Tax (LTT):

Land Transfer Tax (LTT): This is a significant tax that applies to all real estate transactions in Ontario. It is based on the purchase price of the property. For residential properties, the rates are as follows:

• 0.5% on the first $55,000.

• 1% on the amount over $55,000 up to $250,000.

• 1.5% on the amount over $250,000 up to $400,000.

• 2% on the amount over $400,000.

• For properties containing at least one and not more than two single family residences, an additional 2.5% on the amount over $2,000,000.

Toronto Land Transfer Tax

Toronto Land Transfer Tax: If the property is in Toronto, an additional municipal land transfer tax applies, mirroring the provincial rates. A similar rebate is available for first-time homebuyers in Toronto.

Harmonized Sales Tax (HST)

Harmonized Sales Tax (HST): This tax applies to new homes and substantially renovated homes but not to resale homes. HST is 13% in Ontario. However, buyers of new homes may be eligible for a rebate of a portion of the HST, subject to certain conditions and price caps.

Capital Gains Tax

Capital Gains Tax: When selling a property that is not your primary residence, you may be subject to capital gains tax. This means you will have to pay tax on 50% of the profit (capital gain) you make from the sale.

Non-Resident Speculation Tax (NRST)

Non-Resident Speculation Tax (NRST): This 15% tax applies to foreign entities or taxable trustees buying residential properties in the Greater Golden Horseshoe Region.

Property Taxes

Property Taxes: These are ongoing taxes paid yearly, based on the assessed value of the property. Rates vary by municipality.

Rental Income Tax

Rental Income Tax: If you earn rental income from a property, this income must be reported on your tax return and is subject to income tax.

It’s essential to consult with a tax professional or a real estate attorney to understand these implications fully, as they can vary based on specific circumstances and are subject to changes in tax laws.

Mike Yoon 416-333-3263

1. Increased Negotiation Leverage In a market where housing supply exceeds demand, buyers often find themselves with increased leverage. This environment allows for more comprehensive negotiations not only on the final purchase price but also on essential contract terms, such as home inspections, repair requests, and flexible closing dates. This represents a significant shift from the high-pressure, unconditional offers seen in previous years.
2. Expanded Choice and Reduced Competition The current inventory levels provide a diverse range of property types, giving buyers the opportunity to select a home that precisely aligns with their long-term needs and financial boundaries. Reduced competition also grants buyers the luxury of time, enabling thorough due diligence and a more considered decision-making process without the pressure of immediate multiple-offer scenarios.
3. Perspective on Long-Term Asset Stability Real estate is inherently a long-term asset class. Historically, the GTA market has demonstrated resilience driven by consistent population growth and structural supply challenges. Entering the market during a corrective phase can position a buyer to benefit from long-term stability and potential value recovery as the market moves through its natural cycles.
4. A Balanced View of Interest Rates While current mortgage rates are higher than the historical lows of the past few years, they should be viewed within the context of long-term financial planning. Buyers may consider shorter-term fixed rates or variable options that allow for future refinancing opportunities should market interest rates trend downward in the coming years.
5. Understanding Market Cyclicity Through Data The real estate market is cyclical by nature. By examining historical data, we can understand that periods of adjustment are often followed by stabilization. Utilizing objective market data as a foundation for your purchase ensures that your decision is based on economic reality rather than emotional reaction.

Conclusion

Purchasing a home in a buyer’s market is about more than just the immediate price point. It is about the opportunity to mitigate risk through thorough inspection, negotiate favorable terms, and secure a property that fits your lifestyle. We recommend a careful review of your personal financial situation and long-term goals in consultation with a professional before proceeding.

Mike Yoon Real Estate Broker 416-333-3263 teamyoon.ca@gmail.com

1. Average Sold Prices: The average home sold price in the Greater Toronto Area (GTA) for October 2023 was $1,125,928, a 3.4% increase year-over-year. This reflects a steady growth trend, with prices increasing by 1% from the previous month and by 4% since August 2023​​.
2. Property Type Price Trends: The price trends varied by property type:
   • Detached homes saw an average price increase of 5.7% year-over-year to $1.45M.
   • Semi-detached homes experienced a 2.2% year-over-year increase to an average price of $1.10M.
   • Freehold townhouses showed a 1.8% year-over-year increase to $1.04M.
   • Condo apartments, however, witnessed a decrease in average price by 1.1% year-over-year to $709k​​.
3. Buyer’s Market Conditions: Despite the price increases, the GTA has been in a buyer’s market for the past two months, with a sales-to-new-listings ratio (SNLR) of 32%. This indicates more properties are available than buyers, giving buyers more leverage in negotiations. The benchmark home price for October 2023 was $1,103,600, up 1% year-over-year but slightly down 2% from the previous month​​.
4. Home Sales and Listings: There were 4,646 home sales in the GTA in October 2023, down 6% from the same period last year and relatively unchanged from the previous month. New listings in the GTA are up 39% year-over-year to 14,397, with active listings increasing by 50% to 19,540 in October 2023​​.
5. Regional Variations:
   • The City of Toronto’s average home sold price was $1,127,635 in October 2023, nearly identical to the GTA’s average, with sales numbers showing a 5% monthly increase and a 3% year-over-year decrease.
   • York Region (including Markham, Vaughan, and Richmond Hill) saw a 3% month-over-month decrease in home prices to $1,293,179.
   • Halton Region (including Burlington, Oakville, and Milton) experienced a 4% month-over-month increase to $1,199,254.
   • Durham Region saw a significant 6% month-over-month increase to $804,047.
   • Brampton’s housing market observed a 4% monthly decrease to $999,458, while Mississauga experienced an 8% monthly increase to $1,106,263, up 12% year-over-year​​.

These trends indicate a market that is strong and resilient, yet currently favoring buyers, with varying dynamics across different regions and property types in the Greater Toronto Area.

Mandatory Declaration of Occupancy Status

All residential property owners in Toronto will be required to declare the occupancy status of their property(s) annually, even if they live there. Declarations must be made by the homeowner or someone acting on behalf of the owner. The declaration will determine whether the Vacant Home Tax applies and is payable.

Vacant Home Tax Calculation

A Vacant Home Tax of one per cent of the Current Value Assessment (CVA) will be imposed on all Toronto residences that are declared, deemed or determined vacant for more than six months during the previous year. For example, if the CVA of your property is $1,000,000, the tax amount billed would be $10,000 (1% x $1,000,000).

The tax is based on the property’s occupancy status for the previous year. For example, if the home is vacant in 2022 the tax will become payable in 2023.

How to Declare

To make a declaration you will need your 21-digit assessment roll number and customer number from your property tax bill or property tax account statement.

Declarations of occupancy status should be made through the City’s secure online declaration portal. If required, homeowners can complete a paper declaration form . The paper form must be completed in full and received by the City of Toronto before the deadline to avoid being issued a fine and having your property deemed vacant. Incomplete forms will not be accepted. The submission address is on the bottom of the declaration form. Please be aware of Canada Post delivery times. For the best user experience, use the free Adobe Acrobat Reader software to complete and save the fillable form.

For residential properties that are not occupied by the homeowner(s), an audit may be required. If the City conducts an audit, owners may be required to submit information or documentation about tenants and/or permitted occupants to confirm occupancy during the taxation period.

For residential properties declared as vacant for six months or more during the taxation year and without an eligible exemption, owners will be required to pay the Vacant Home Tax.

Owners of properties subject to the tax will be issued a Vacant Home Tax Notice in March/April and payment will be due in three instalments in May, June and July.

Residential properties will be deemed vacant if the owner fails to make the annual declaration by the deadline and/or provide supporting documentation.

If there is an error in the declaration you submitted, you can:

• submit a new declaration prior to the February 2 declaration deadline
• file a Notice of Complaint if it is after the declaration deadline

Failure to declare or making a false declaration may result in a fine of $250 to $10,000.

April 1st, 2021

Tenants must give proper notice when they want to move. This means that you must tell your landlord in writing that you are moving. The form you use to do this is called a Tenant’s Notice to Terminate the Tenancy (Form N9). You can get this form from the Landlord and Tenant Board. See Where to get help for contact information for the Board.

It is best to use the Form N9. But if you write a notice yourself, the notice must include:

• the address of the place you are moving out of,
• the date you are moving,
• your signature, and
• the date you signed the notice.

You do not need to give a reason why you are moving.

Important: If you do not move out when your notice says you will, your landlord can apply right away to the Landlord and Tenant Board for an eviction order. Your landlord can do this without telling you or giving you any papers.

For your notice to be legal, you must make sure that:

• you choose the right date to end your tenancy, which is called the termination date, and
• you give the notice to your landlord on time.

The right termination date and when to give notice both depend on what kind of tenancy you have. This is explained in the next section.

Definition: The term tenancy means your legal right to live in your place. Usually this right comes from an agreement between you and your landlord. This agreement might be called a tenancy agreement, a lease, or a rental agreement. The agreement does not have to be in writing to be legal. It can be a spoken agreement or even an unspoken understanding between you and your landlord.

Choosing the right termination date

The termination date is the day your notice says you will end your tenancy and move out. There are only certain days that you can choose as your termination date. To choose the right termination date, you need to know what kind of tenancy you have:

• If you have an agreement with the landlord to live in a place for a certain length of time, you have a fixed‑term tenancy. The agreement is often called a lease and is usually for a one-year term. It will probably be in writing but it does not have to be. To end this kind of tenancy, you must choose the last day of the term as the termination day on your notice.
• If you do not have an agreement for a fixed term or if your term has ended, your tenancy automatically renews at the end of each rental period. The most common rental period is a month, but for many rooming houses it is a week. This kind of tenancy is called a periodic tenancy. To end it, you must choose the last day of a rental period as the termination date on your notice. For most tenants, this is the day before the rent is due.

When to give notice

If you pay your rent by the month or the year, or if you have any kind of fixed-term tenancy, you must give the notice to your landlord at least 60 days before your termination date.

Exception for February: You can give a little less than 60 days’ notice if February is one of the months in your notice period. If you want to move out the last day of February, you have until January 1 to give the notice to your landlord. And if you want to move out on March 31, you have until February 1 to give the notice to your landlord.

If you have a periodic tenancy and pay your rent by the day or the week, you must give the notice to your landlord at least 28 days before your termination date.

You can end any kind of tenancy on any termination date by giving at least 10 days’ notice if your landlord has given you a notice to move out that says your landlord wants to:

• live in your place or have a close family member or caregiver live there,
• use your place for something other than living space,
• make major repairs, or
• renovate or tear down your place.

How to give the notice

You can mail or fax the notice, or give it to your landlord in person. You can also deliver the notice to your landlord’s agent. An agent can be someone who works for your landlord, for example, the superintendent or someone who works in the property manager’s office.

Make sure to keep a copy of the notice. If you give the notice to someone in person, you can ask them to sign and date your copy.

If you mail your notice, keep a record of when you mailed it. The best way to do this is to get a receipt from the post office.

It is very important that you give your landlord the notice on time. If your notice is even one day late, your tenancy will not end on the termination date you have chosen. That might mean that you will owe your landlord more money.

Important: To count the number of days correctly, start on the day after your landlord gets the notice and end on the termination date. If you mail your notice, start counting on the sixth day after you mail it.