Toronto REALTORS(R) Tell City that 100% Land Transfer Tax Increase is Unfair



    TORONTO, June 27 /CNW/ - The Toronto Real Estate Board has told the City
of Toronto that its proposal to charge a second land transfer tax treats home
buyers unfairly. TREB's comments were made in a formal presentation to the
City's Executive Committee earlier this week.
    If the City moves forward with the proposal, the average Toronto home
buyer will pay another $4,200 in land transfer tax. That is a 100 per cent
increase, and would give Toronto the highest land transfer taxes in Canada and
the second highest in North America.
    "A second land transfer tax discriminates against home buyers. The City
doesn't provide any land transfer related services, so this tax is just a way
of forcing home buyers to pay for services for everyone. That, simply, is
unfair," said Dorothy Mason, President of the Toronto Real Estate Board.
    TREB also pointed out that the proposed second land transfer tax is most
unfair to those who can least afford it - people who have small down payments
and, therefore, can only qualify for a mortgage by also paying for mortgage
insurance.
    "Many home buyers will have no choice but to take money from their down
payment to pay this tax, which would mean extra mortgage interest and higher
mortgage insurance premiums. For the most vulnerable, this means that the
second land transfer tax will actually cost over $15,000. The City will
literally be forcing people to take out a mortgage to pay a tax. That is
unfair," Mason said.
    TREB also noted that Toronto residents and businesses can't even expect
that the new money the City collects from this tax will result in any improved
services.
    "The Mayor and City staff have admitted that the money the City takes
from home buyers will be used to fill the holes in the City's current budget,
not to expand or improve services. It's not fair that home buyers will be
paying more for the same service", Mason said.
    TREB plans to continue opposing the implementation of a second land
transfer tax in Toronto.
    "A second land transfer tax will make the dream of home ownership more
difficult to achieve. Toronto's REALTORS(R) are protecting the interests of
home buyers by strongly opposing the City's proposal. Just in the last week,
hundreds of REALTORS(R) and the public have sent emails to the Mayor and all
City Councillors telling them that his tax is a bad idea. We plan to keep up
the fight," said Mason.




For further information:

For further information: Wendy Craven, Director, Public Relations,
Toronto Real Estate Board, Office (416) 443-8159, 24 Hour Cell (416) 277-7390,
email: wcraven@trebnet.com

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