F.A.Q | Canadian Real Investment Centre (HK)

Frequently Asked Questions

General Question

Yes, we are aware that there are other important issues that you have to consider when purchasing property in Canada. Besides assisting our clients with every stage of the purchasing process, we also can provide introductions to the relevant professional service providers as you may require. These services are offered by professionals including:

  • Mortgage Specialists
  • Legal, Accounting and Notary Professionals
  • Educations Consultants

British Columbia

The property transfer tax rate is:

  • 1% on the first $200,000,
  • 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
  • 3% on the portion of the fair market value greater than $2,000,000, and
  • If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).

If you’re purchasing your first home and will use it as your permanent residence, you may qualify to reduce or eliminate the amount of property transfer tax you pay.

The money raised from the property taxes you pay are critical to funding local programs and services, such as:

  • Police and fire protection
  • Emergency rescue services
  • Road construction and maintenance
  • Garbage services
  • Recreation and community centers
  • Parks
  • Libraries
  • Schools
  • Hospitals

Your property tax notice is a bill for some services that are available. The amount you pay depends on the:

  1. Property location
  2. Property classification
  3. Property assessed value
  4. Cost of services

Your taxes are calculated using tax rates that are set for each available service. Tax rates are adjusted every year to make sure the funds needed to provide services are raised. You can’t appeal your property taxes, but you may be able to appeal your property assessment.

Yes, there is a tax of 20% in the following jurisdictions:

  • Capital Regional District
  • Fraser Valley Regional District
  • Metro Vancouver Regional District
  • Regional District of Central Okanagan
  • Regional District of Nanaimo

Yes, there is both an empty homes tax in the City of Vancouver and a speculation tax in the Metro Vancouver Regional District.

City of Vancouver Empty Home Tax:

  • Properties deemed empty will be subject to a tax of 1%* of the property’s assessed taxable value.
  • Vancouver property owners must declare each year – even if you live in your home.
  • Only one property status declaration is required each year per property.
  • Failure to declare by the deadline will result in your property being deemed vacant and subject to a tax of 1% of its assessed taxable value and a $250 by-law ticket.

For declaration dates, please click here.

*As of February 3rd 2021, the new 3% Empty Homes Tax Increase will come into effect.

Greater Vancouver Regional District Speculation Tax:

The speculation and vacancy tax rate varies depending on the owner’s tax residency. In addition, the tax rate varies based on whether the owner is a Canadian citizen or permanent resident of Canada, or a satellite family.

For 2018, the tax rate is:

  • 0.5% of the property’s assessed value for all properties subject to the tax

For 2019 and subsequent years, the tax rate is:

  • 2% for foreign owners and satellite families
  • 0.5% for Canadian citizens or permanent residents of Canada who are not members of a satellite family

The speculation and vacancy tax applies based on ownership as of December 31 each year.

Every registered owner of residential property in a designated taxable region must complete a declaration each year to declare their residency status and how their property has been used.

You must declare each year because your circumstances may change during the year.

Your declaration is due on March 31 of each year.

IMPORTANT – If your property is located in the city of Vancouver, the property is subject to both the empty homes tax and the speculation tax.

  1. Legal fees – since a lawyer or notary public is an essential part of your home-buying team, the work you’ll need completed involves legal fees. Most legal fees include searching the title of a property, arranging a property survey if necessary and handling other disbursements as required.
  2. Mortgage insurance and application fee – for any high ratio mortgage, which is any mortgage in which 80% or more of the house’s purchase price is covered by the mortgage, the lender requires mortgage insurance.
  3. Property insurance – this insurance covers the replacement value of your home and its contents. Most mortgage lenders will require proof that you have this insurance before processing a mortgage.
  4. Home inspection – only for listed properties, not presale.
  5. Goods and Services Tax (GST) – GST is payable on the purchase price on all new homes (presales).

Ontario - Toronto

In Ontario, property transfer tax is also known as Municipal Land Transfer Tax (MLTT)

  • 0.5% on the first $55,000
  • 1.0% on the fair market value of $55,000.01 to $250,000.00
  • 1.5% on the fair market value of $250,000.01 to $400,000.00
  • 2.0% on the fair market value of $400,000.01 to $2,000,000.00
  • 2.5% on the fair market value of over $2,000,000.00

The first-time home purchase rebates applies to:

  • newly constructed
  • resale residential properties

For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, and a rebate of up to $4,475.00. The definition of a first-time purchaser includes all of the above, and:

  • the purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate

Your property tax bill is calculated by multiplying the current year phased-in property assessment value, as determined by the Municipal Property Assessment Corporation (MPAC), by Council approved City Tax Rate(s) with the City Building Fund Levy and the Education Tax Rate, as set by the Government of Ontario.

Example:

Estimated taxes on a residential property with an Assessed Value of $703,232

Estimated property tax = Assessed Value x Total Tax Rate

= $703,232 x 0.599704%

= $4,217.31 (includes municipal, city building fund levy and education taxes)

Yes, there is and it is called The Non Resident Speculation Tax (NRST). The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The GGH includes the following geographic areas:

  • City of Barrie
  • County of Brant
  • City of Brantford
  • County of Dufferin
  • Regional Municipality of Durham
  • City of Guelph
  • Haldimand County
  • Regional Municipality of Halton
  • City of Hamilton
  • City of Kawartha Lakes
  • Regional Municipality of Niagara
  • County of Northumberland
  • City of Orillia
  • Regional Municipality of Peel
  • City of Peterborough
  • County of Peterborough
  • County of Simcoe
  • City of Toronto
  • Regional Municipality of Waterloo
  • County of Wellington, and
  • Regional Municipality of York.

No, there is no vacancy tax!

  1. Legal fees – since a lawyer or notary public is an essential part of your home-buying team, the work you’ll need completed involves legal fees. Most legal fees include searching the title of a property, arranging a property survey if necessary and handling other disbursements as required.
  2. Mortgage insurance and application fee – for any high ratio mortgage, which is any mortgage in which 80% or more of the house’s purchase price is covered by the mortgage, the lender requires mortgage insurance.
  3. Property insurance – this insurance covers the replacement value of your home and its contents. Most mortgage lenders will require proof that you have this insurance before processing a mortgage.
  4. Home inspection – only for listed properties, not presale.
  5. Goods and Services Tax (GST) – GST is payable on the purchase price on all new homes (presales).

Quebec - Montreal

In Montreal, property transfer tax is called a welcome tax and is as follows:

  • 1.5% on the fair market value of $ 250,001 to $ 500,000
  • 2% on the fair market value of $ 500,001 to $ 1,000,000
  • 2.5% on the fair market value exceeding $ 1,000,001

Montréal’s City Council levies a variable rate tax on all properties situated within the city. Rates depend on property category. There are four such categories:

  • Residual (residential properties of five units or less and unserviced vacant lots)
  • Properties with six or more units
  • Non-residential properties
  • Serviced vacant lots

The tax rate is roughly 0.6%

No, there is no foreign buyers tax!

No, there is no vacancy tax!

  1. Legal fees – since a lawyer or notary public is an essential part of your home-buying team, the work you’ll need completed involves legal fees. Most legal fees include searching the title of a property, arranging a property survey if necessary and handling other disbursements as required.
  2. Mortgage insurance and application fee – for any high ratio mortgage, which is any mortgage in which 80% or more of the house’s purchase price is covered by the mortgage, the lender requires mortgage insurance.
  3. Property insurance – this insurance covers the replacement value of your home and its contents. Most mortgage lenders will require proof that you have this insurance before processing a mortgage.
  4. Home inspection – only for listed properties, not presale.