The new City Land Transfer Tax will double the taxes a buyer pays at closing. On a $400,000 purchase, the new tax plus the existing Ontario Land Transfer Tax means you will pay $8,200 versus $4475 before. It applies to all Agreements of Purchase and Sale entered into after December 31 of this year. It comes into effect February 1st of 2008. That means you can also enter into a deal after December 31, as long as it closes by January 31 of '08. And of course people who bought condos over the last couple of years that have not completed, are exempt too.
So will this create a sales stampede before December 31? What happens after February 1? Will buyers disappear?