On the off chance there are policy makers here, I’m surprised there’s not a bigger focus on land transfer taxes and their impact on home prices. When you purch

On the off chance there are policy makers here, I’m surprised there’s not a bigger focus on land transfer taxes and their impact on home prices. When you purchase a home in Ontario, as a buyer, you are expected to pay an additional 2-5% of the purchase price in taxes. You need to have this money when you close, in addition to your down payment, and it is remitted immediately to the government. This can be the equivalent of 5-10 years in property taxes, depending on the purchase price and how your home was assessed. And you pay it every time you move (and buy a new home)! This pushes the tax burden disproportionately onto new homeowners, and incentivizes folks to stay in their homes for longer (don’t forget the additional 5% paid to agents). It reminds me of Prop 13 in California, which similarly disproportionately taxes new homeowners and incentivizes people to hold onto property forever. (Note: my numbers here are fuzzy, and I’m not a real estate expert, so someone here is welcome to correct me if I’ve incorrectly interpreted all this.) https://www.ratehub.ca/land-transfer-tax https://www.ratehub.ca/land-transfer-tax