Buying real property in New Brunswick will get more expensive as the province is raising the Real Property Transfer Tax.
The one-time payment on the purchase of a property when the transfer is registered, will increase from 0.5 per cent to 1 per cent effective April 1, 2016. The tax rate is based on the greater of the consideration for the transfer or the assessed value of the real property. The rate is the same Province wide, no matter the amount. The tax is collected by the Province of New Brunswick. (land transfer rates across Canada)
New Brunswick first time home buyers do not get a break, as is the case in some jurisdictions. And of course this will add to New Brunswick real estate Buyers’ closing day costs which typically include legal fees along with title insurance or surveyor fees. Next to the down payment, closing costs are a big hurdle for first time home buyers.
Buyers of new housing in New Brunswick will take an extra hit later this year as the HST rate rises two percentage points on July 1, 2016.
This is not an April Fools’ Day prank. If you want to beat the increase, act now.