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News 2 weeks ago

Case Study: The New MLTT Rates and Their Impact on High-Value Toronto Properties

In January 2024, Toronto will witness a significant change in its Municipal Land Transfer Tax (MLTT) rates. While the rates for properties valued up to $3,000,000 will remain the same, any portion of the purchase price in excess of $3,000,000 will be subject to higher tax rates. The changes are implemented on a sliding scale, meaning the tax rate increases progressively with the property value.

For those in the market for high-value properties, particularly in the luxury segment, these new rates will have a tangible impact on the overall cost of purchasing a new home. While this move by the city aims to generate additional revenue, it’s critical for buyers to understand what these adjustments mean for their budget and financial planning.

To offer a clear illustration of how these changes could affect different buyer profiles, we’ve prepared a detailed case study covering three scenarios—properties in the  $3M, $5M, and $10M range. This case study aims to not only inform but also guide you through this new financial landscape in Toronto’s residential real estate market.

Note: The figures below also include the Provincial Land Transfer Tax.
Starting January 2024, Toronto's Municipal Land Transfer Tax (MLTT) rates will undergo a pivotal shift
146 Leacrest Rd

Scenario 1: $3,495,000 Property in Leaside

The Buyers: Sarah and Mark Thompson

  • Profession: Surgeons
  • Looking For: A custom-built detached home with high-end finishes, a spacious chef’s kitchen, and an open-concept layout.

The Property
146 Leacrest Road in Leaside offers a luxurious living experience with its sophisticated contemporary design aesthetic, high ceilings, crown moulding, and top-of-the-line stainless steel appliances in the kitchen.

Current vs New MLTT Rates

  • Current Total LTT: $66,375
  • New Total LTT: $73,799.98
  • Difference: $7,424.98 increase

Real-world Impact

Sarah and Mark will need to account for an additional $7,424.98 for the Land Transfer Tax. Given their high standards for interior finishes and the kitchen, they might need to adjust their budget, potentially impacting some of the upgrades or customizations they had in mind.

Scenario 2: $5,595,000 Property in Trinity Bellwoods

The Buyers: Emily and Jake Williams

  • Profession: Tech Entrepreneurs
  • Looking For: A unique home with architectural brilliance, and smart home features, with the potential to provide an additional source of rental income.

The Property
44 Foxley Street is a visionary gem that embodies the future of urban living. It stands out with its captivating façade, sweeping curves, and elegant arches. Additionally, the property features a striking accessory laneway home with a dedicated workspace and an upper-level self-contained apartment.

Current vs New MLTT Rates

  • Current Total LTT: $108,375
  • New Total LTT: $163,249.98
  • Difference: $54,874.98 increase

Real-world Impact

Emily and Jake Williams will need to account for an additional $54,874.98 for the Land Transfer Tax. Given their interest in a property that showcases architectural brilliance and smart home features, this uptick in costs may require some adjustments.

Scenario 3: $10,895,000 Property in Lawrence Park South

The Buyers: Olivia and Alex Johnson

  • Profession: High-ranking Investment Bankers
  • Looking For: A home that combines innovative design, sustainability, and the epitome of modern luxury living.

The Property
108 Stratford Crescent, also known as the ‘Bézier Curve House’, is a Bortolotto-designed marvel in the heart of Lawrence Park South. With 5,300 square feet of space, the property features a dynamic, open floor plan, spectacular lounge area with 24-foot ceilings, and an ultra-modern chef’s kitchen. 

Current vs New MLTT Rates

  • Current Total LTT: $214,375
  • New Total LTT: $469,099.98
  • Difference: $254,724.98 increase

Real-world Impact 

Olivia and Alex Johnson will need to account for an additional $254,724.98 for the Land Transfer Tax. Given their household income and a desire for a property that melds innovative design with sustainability, this significant tax increase could lead them to re-evaluate their investment strategy or even aspects of the property’s interior design and sustainability features.

The sizable increase in Land Transfer Tax will likely necessitate some form of budget adjustment. However, considering their profession and household income, Olivia and Alex have the financial bandwidth to absorb these costs, albeit with some level of recalibration in their overall real estate investment plan.


This change in the MLTT rates will be an important factor for Olivia and Alex as they consider finalizing their investment in this high-value property.

Understanding the new MLTT rates is crucial for anyone considering high-value property investments in Toronto’s competitive luxury real estate market. Consult with the Heaps Estrin Team for personalized guidance and strategic advisory services tailored to your needs.

Ready to make an informed decision? Contact the Heaps Estrin Team today.

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