Bradford promises to scrap municipal land transfer tax for homes under $1.1M
Toronto mayoral candidate Brad Bradford has proposed eliminating the municipal land transfer tax for homes under $1.1 million to assist home buyers. Opponents, including rival Olivia Chow, argue that this policy would lead to significant municipal service cuts.
Why it matters
The proposal highlights the tension between housing affordability initiatives and the fiscal sustainability of municipal budgets in major cities.
Brad Bradford has announced that he will waive the municipal land transfer tax on the first $1.1 million of the value of homes purchased in Toronto if elected mayor but Olivia Chow is warning that doing so would inevitably result in service cuts.
The move could save home buyers approximately $18,000 when purchasing a $1.1 million home as a principal residence in the city, he said.
Buyers would still be on the hook for the provincial land transfer tax, which is taxed at roughly the same rate.
Bradford said he also wants to expand the first-time home buyers rebate in Toronto -- which can currently only be applied to the first $400,000 of the purchase price -- to the previous year’s average home sale price, which would then move with the market every year following.
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