Land Transfer Taxes in Newfoundland & Labrador
Land Transfer Taxes (LTT) are provincial taxes levied on the exchange of real estate, and are the responsibility of the purchaser. Usually the LTT is a percentage of the property value. All provinces have a land transfer tax except Alberta and Saskatchewan (who instead levy a much smaller fee). Note that Ontario, Toronto, B.C. and PEI there are LTT rebates for first time homeowners. Also, keep in mind that Toronto is an exception as it charges an additional municipal tax (see Toronto section for additional information).
Newfoundland and Labrador
In Newfoundland and Labrador the land transfer tax is levied on the property value and mortgage amount as follows:
- For properties and mortgages under $500, a flat fee of $100 is charged
- For properties over $500, $100 plus 0.4% of the mortgage amount is charged
Assuming a property is purchased for $300,000 with a $200,000 mortgage, the land transfer tax would be equal to $100 + $800 ($200,000 X 0.004) = $900
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