Land Transfer Tax (LTT) Additional Information Collection

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On April 24, 2017, the Province began collecting additional information from persons who purchase or acquire at least one and not more than six single family residences, or agricultural land, through the Prescribed Information for the Purposes of Section 5.0.1 Form (Form). To assist taxpayers, the Ministry of Finance provided a transition period from April 24 to May 5, 2017, where any deficiencies relating to the Form would not incur penalties. Effective May 6, 2017 the completion of the Form became mandatory.

This report is based on the additional information data (referenced above) for properties registered in the Province and is an addition to previously released information by the Province. The tables below are based on registered properties reported to the Ministry between November 18, 2017 and February 16, 2018 and include a breakdown based on transactions in the GGH, outside of the GGH, and Ontario as a whole.

Note: This analysis cannot be used to derive the amount of Non-Resident Speculation Tax (NRST) collected or transactions subject to the NRST, as some foreign transactions may have been grandparented or exempt from the NRST.

Contents

Purchases by Foreign Entities – GGH and Non-GGH Regions

November 18, 2017 – February 16, 2018

The proportion of foreign transactions in the GGH has steadily decreased since the first data release in July 2017. Approximately 1.6 per cent of the 45,220 transactions in the GGH involved at least one foreign entity. Previously, the proportion of foreign transactions in the GGH was 4.7 per cent, 3.2 per cent and 1.9 per cent for the periods April 24, 2017 to May 26, 2017, May 27, 2017 to August 18, 2017 and August 19, 2017 to November 17, 2017, respectively.

Out of the 21,087 transactions outside of the GGH, approximately 1.7 per cent involved at least one foreign entity. Overall, out of the 66,307 transactions in Ontario, approximately 1.7 per cent involved at least one foreign entity.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Total Transactions
(A)
Foreign Transactions
(B)
Foreign Transactions (%)
(C = B / A)
Distribution of Foreign Transactions (%)
GGH Total 45,220 738 1.6 67.2
Durham 3,260 22 0.7 2.0
Halton 3,519 46 1.3 4.2
Niagara South & North 2,679 39 1.5 3.5
Peel 6,530 113 1.7 10.3
Simcoe 3,392 19 0.6 1.7
Toronto 10,782 267 2.5 24.3
Waterloo 2,688 26 1.0 2.4
Wellington 1,315 9 0.7 0.8
Wentworth 2,541 18 0.7 1.6
York 5,170 163 3.2 14.8
Other GGH Regions3 3,344 16 0.5 1.5
Non-GGH Total 21,087 361 1.7 32.8
Bruce 570 5 0.9 0.5
Grey 575 4 0.7 0.4
Huron 337 4 1.2 0.4
Muskoka 487 6 1.2 0.5
Ottawa 3,952 100 2.5 9.1
Oxford 665 2 0.3 0.2
Other Non-GGH Regions2 14,501 240 1.7 21.8
Ontario Total 66,307 1,099 1.7 100.0
Numbers may not add due to rounding.

Property Purchased with the Intention to Lease (Rent) (%)

November 18, 2017 – February 16, 2018

In the GGH, of the transactions involving at least one foreign entity, approximately 16 per cent included a purchaser that stated that their intention was to lease the property, compared to approximately 18 per cent from the previous data release. However, the proportion with the same criteria has slightly increased for Canadian transactions, from approximately 16 per cent to 17 per cent.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions Foreign Transactions
GGH Total 17.3 16.0
Durham 12.0 20.0
Halton 20.4 19.6
Niagara South & North 20.8 18.4
Peel 17.0 27.4
Simcoe 16.0 5.9
Toronto 18.8 11.6
Waterloo 20.5 8.0
Wellington 19.6 11.1
Wentworth 18.8 16.7
York 13.8 13.0
Other GGH Regions3 14.5 50.0
Non-GGH Total 16.4 17.1
Bruce 16.0 0.0
Grey 17.7 25.0
Huron 17.4 0.0
Muskoka 10.6 16.7
Ottawa 16.3 20.0
Oxford 14.2 100.0
Other Non-GGH Regions2 16.7 15.8
Ontario Total 17.0 16.3
Numbers may not add due to rounding.

Property Purchased with the Intention to Occupy as a Principal Residence (%)

November 18, 2017 – February 16, 2018

Of the total transactions in the GGH involving at least one foreign national, approximately 82 per cent included a purchaser that stated that their intention was to occupy the property as a principal residence for themselves or a family member, compared to approximately 83 per cent of Canadian transactions with similar criteria.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions Foreign Transactions
GGH Total 82.9 82.2
Durham 89.4 85.0
Halton 80.3 89.1
Niagara South & North 77.5 44.7
Peel 85.2 70.8
Simcoe 81.2 76.5
Toronto 82.2 89.5
Waterloo 80.0 92.0
Wellington 81.8 77.8
Wentworth 81.8 72.2
York 87.0 88.2
Other GGH Regions3 80.1 41.7
Non-GGH Total 78.1 58.7
Bruce 67.1 25.0
Grey 70.1 50.0
Huron 71.3 0.0
Muskoka 58.8 16.7
Ottawa 84.4 82.0
Oxford 87.4 0.0
Other Non-GGH Regions2 77.4 51.3
Ontario Total 81.4 74.6
Numbers may not add due to rounding.

Type of Dwelling (%)

November 18, 2017 – February 16, 2018

Of the total transactions in the GGH involving at least one foreign entity, approximately 36 per cent were detached houses, 14 per cent were semi-detached houses and townhouses, and 46 per cent were condominiums. Outside of the GGH, foreign transactions involved approximately 25 per cent of ‘Other’ types of dwelling, which can include cottages and mobile homes. Compared to the previous data release, the proportion of foreign transactions involving condominiums has increased from approximately 44 per cent to 46 per cent in the GGH.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions
Detached
Canadian Transactions
Semi-Detached & Townhouses
Canadian Transactions
Condominiums
Canadian Transactions
Other
GGH Total 54.1 17.8 25.3 2.8
Durham 71.4 19.5 7.2 1.9
Halton 43.9 24.7 30.1 1.3
Niagara South & North 73.6 13.4 8.5 4.5
Peel 45.4 25.9 28.1 0.6
Simcoe 71.6 13.8 9.1 5.5
Toronto 31.5 14.5 51.8 2.1
Waterloo 62.4 18.1 16.4 3.1
Wellington 59.0 14.5 23.2 3.2
Wentworth 70.1 18.6 8.5 2.8
York 58.8 18.9 20.2 2.1
Other GGH Regions3 76.6 9.7 5.1 8.7
Non-GGH Total 71.4 10.1 8.7 9.8
Bruce 71.3 5.5 7.0 16.2
Grey 72.5 4.4 11.8 11.3
Huron 80.2 3.9 1.2 14.7
Muskoka 59.0 3.2 4.4 33.4
Ottawa 50.8 26.1 19.7 3.5
Oxford 83.2 8.4 4.9 3.6
Other Non-GGH Regions2 76.8 6.4 6.1 10.7
Ontario Total 59.5 15.4 20.1 5.0

Numbers may not add due to rounding

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Foreign Transactions
Detached
Foreign Transactions
Semi-Detached & Townhouses
Foreign Transactions
Condominiums
Foreign Transactions
Other
GGH Total 36.0 13.5 45.6 5.0
Durham 75.0 20.0 0.0 5.0
Halton 65.2 15.2 17.4 2.2
Niagara South & North 36.8 13.2 2.6 47.4
Peel 19.5 12.4 64.6 3.5
Simcoe 70.6 17.6 0.0 11.8
Toronto 14.6 7.1 77.2 1.1
Waterloo 72.0 4.0 24.0 0.0
Wellington 55.6 11.1 22.2 11.1
Wentworth 55.6 33.3 11.1 0.0
York 54.7 23.0 19.9 2.5
Other GGH Regions3 66.7 8.3 8.3 16.7
Non-GGH Total 49.7 14.2 10.7 25.4
Bruce 25.0 0.0 0.0 75.0
Grey 50.0 0.0 25.0 25.0
Huron 66.7 0.0 0.0 33.3
Muskoka 33.3 0.0 33.3 33.3
Ottawa 39.0 33.0 23.0 5.0
Oxford 100.0 0.0 0.0 0.0
Other Non-GGH Regions2 54.8 7.0 4.8 33.3
Ontario Total 40.4 13.7 34.3 11.6
Numbers may not add due to rounding

Type of Purchaser (%)

November 18, 2017 – February 16, 2018

Approximately 90 per cent of the transactions in the GGH that involved at least one foreign entity were made by individuals and 10 per cent were made by corporations. The proportion of purchasers that were corporations was higher for transactions that involved at least one foreign entity, than Canadian transactions. This was true for transactions in the GGH, outside of the GGH, as well as Ontario as a whole.  

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Canadian Transactions
Corporations
Canadian Transactions
Individuals
Canadian Transactions
Corporations & Individuals
Canadian Transactions
Total
GGH Total 3.8 96.1 0.1 98.4
Durham 2.7 97.1 0.1 99.3
Halton 3.9 96.1 0.0 98.7
Niagara South & North 6.0 93.6 0.4 98.5
Peel 2.1 97.8 0.0 98.3
Simcoe 3.1 96.8 0.1 99.4
Toronto 4.6 95.4 0.1 97.5
Waterloo 4.2 95.8 0.0 99.0
Wellington 6.3 93.3 0.4 99.3
Wentworth 4.4 95.5 0.1 99.3
York 2.7 97.2 0.1 96.8
Other GGH Regions3 4.2 95.5 0.2 99.5
Non-GGH Total 5.7 93.9 0.4 98.3
Bruce 5.7 93.8 0.5 99.1
Grey 5.8 93.9 0.4 99.3
Huron 9.6 88.9 1.5 98.8
Muskoka 4.8 94.6 0.6 98.8
Ottawa 4.0 95.9 0.2 97.5
Oxford 5.3 94.1 0.6 99.7
Other Non-GGH Regions2 6.1 93.5 0.4 98.3
Ontario Total 4.4 95.4 0.2 98.3
Numbers may not add due to rounding.
Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
Foreign Transactions
Corporations
Foreign Transactions
Individuals
Foreign Transactions
Corporations & Individuals
Foreign Transactions
Total
GGH Total 10.0 89.8 0.1 1.6
Durham 22.7 77.3 0.0 0.7
Halton 6.5 93.5 0.0 1.3
Niagara South & North 15.4 84.6 0.0 1.5
Peel 12.4 87.6 0.0 1.7
Simcoe 42.1 57.9 0.0 0.6
Toronto 5.2 94.4 0.4 2.5
Waterloo 7.7 92.3 0.0 1.0
Wellington 11.1 88.9 0.0 0.7
Wentworth 16.7 83.3 0.0 0.7
York 6.1 93.9 0.0 3.2
Other GGH Regions3 50.0 50.0 0.0 0.5
Non-GGH Total 13.0 86.1 0.8 1.7
Bruce 20.0 80.0 0.0 0.9
Grey 0.0 100.0 0.0 0.7
Huron 25.0 75.0 0.0 1.2
Muskoka 16.7 83.3 0.0 1.2
Ottawa 4.0 96.0 0.0 2.5
Oxford 50.0 0.0 50.0 0.3
Other Non-GGH Regions2 16.3 82.9 0.8 1.7
Ontario Total 11.0 88.6 0.4 1.7
Numbers may not add due to rounding.

Endnotes

[1] Because some LRO boundaries do not coincide with municipal boundaries, the data may not fully represent what is covered in the GGH and may include areas outside of the GGH. Any discrepancy is expected to be insignificant.

[2] Includes Algoma, Cochrane, Dundas, Elgin, Essex County, Frontenac, Glengarry, Grenville, Haliburton, Hastings, Kenora, Kent County, Lambton, Lanark, Leeds, Lennox, Manitoulin, Middlesex County, Nipissing, Norfolk, Parry Sound, Perth, Prescott, Prince Edward, Rainy River, Renfrew, Russell, Stormont, Sudbury, Thunder Bay, and Timiskaming.

[3] Brant, Dufferin, Haldimand, Northumberland, Peterborough and Victoria are combined due to low transaction counts.

Glossary

Term Definition
Additional Information Collection
(Prescribed Information for the Purposes of Section 5.0.1)
On April 24, 2017 the Province began collecting additional information to better understand trends in the housing market through the land transfer tax (LTT) system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence-based policy development with respect to Ontario's real estate market.

All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

For more information, refer to the Prescribed Information for the Purposes of Section 5.0.1.

Agricultural land Refers to farm lands used for farm purposes by the owner or used for farm purposes by a tenant of the owner and buildings thereon used for farm purposes, including the residence of the owner or tenant and of the owner’s or tenant’s employees and their families on the farm land.
Canadian Transaction A transaction involving exclusively a Canadian citizen, permanent resident of Canada, or a Canadian corporation (or any combination of these three entities).
Controlled In relation to the control of a corporation, means controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada).

Dual citizenship

Every country decides whom it considers to be a citizen. If more than one country recognizes an individual as a citizen, then that individual is considered to be a dual citizen by the Government of Canada.
Family member With respect to an individual, means:
  1. the individual’s spouse,
  2. a child or step-child of the individual or the individual’s spouse,
  3. a parent or step-parent of the individual or the individual’s spouse,
  4. a grandparent or step-grandparent of the individual or the individual’s spouse,
  5. a sibling or step-sibling of the individual or the individual’s spouse, or any spouse of any such sibling,
  6. the spouse of a child of the individual, or
  7. a grandchild, step-grandchild or great-grandchild of the individual or the individual’s spouse, or the spouse of any such grandchild or great-grandchild.
Foreign corporation Means a corporation that is one of the following:
  1. A corporation that is not incorporated in Canada.
  2. A corporation that is incorporated in Canada and is controlled by one or more of the following:
    1. A foreign national.
    2. A corporation that is not incorporated in Canada.
    3. A corporation that would, if each share of the corporation’s capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled by the particular person;

Note: For the purposes of the additional information, a corporation that is incorporated in Canada will not be considered a “foreign corporation” if its shares are listed on a stock exchange in Canada.

Foreign entity Means a foreign corporation or a foreign national.
Foreign national As defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada and includes a stateless person.
Foreign Transaction Refers to a transaction which involved at least one foreign entity.
Greater Golden Horseshoe Region (GGH) Refers to the area of land comprised of the geographic areas of the following municipalities:

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.

Land Registration Office (LRO) LROs are managed by the Ministry of Government and Consumer Services (MGCS) which allows persons to register and search official private property records using Ontario’s land registration system.
Land Transfer Tax (LTT) The LTT is a broad-based tax imposed on persons acquiring land, or a beneficial interest in land, in Ontario with few exceptions.  LTT is payable to the Province when the transfer is registered under the Land Titles Act or the Registry Act, as applicable.

If the acquisition in an interest in land is not registered, LTT is payable directly to the Province in respect of the unregistered disposition of a beneficial interest in land, within 30 days after the transaction closing date.

Mixed property types Refers to land that includes any combination of a single family residence, agricultural land, and any other type of land (e.g. commercial).
Non-GGH regions Refers to the area of land in Ontario that is not within the GGH (see the GGH definition above).
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 GGH by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario, and is effective as of April 21, 2017.

For more information, refer to the Non-Resident Speculation Tax.

Permanent resident of Canada Means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).
Single Family Residence Means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependents or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,
  1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
  2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

For example: a detached and semi-detached house, duplex, freehold townhouse, condominium townhouse, condominium apartment, and cottage.

Teranet Inc. A private corporation that is the exclusive provider of Ontario’s online property search and electronic land registration service.
Teranet Express Teranet Express is a self-serve channel that allows customers to access the Ministry of Government and Consumer Services (MGCS) Land Registration Database and the Ministry of the Attorney General (MAG) Writs Database.

This platform must be used to electronically access and complete the additional information collection form.

Type of Dwelling

Refers to a specific dwelling unit if the “type of property” acquired is a single family residence or mixed property types (which includes a portion of a single family residence). The following are available options for selection:

  • detached,
  • semi-detached,
  • duplex,
  • residential dwelling containing more than two units (e.g. triplex, fourplex),
  • condominium,
  • townhouse (freehold),
  • townhouse (condominium),
  • mobile home,
  • cottage, and
  • other (if selected, the purchaser must input a type of dwelling that is not found above).
Type of Property  Refers to land that is a single family residence, agricultural land or mixed property types.

Value of the Consideration

This term can generally be considered as the purchase price of the land (found on the agreement of purchase and sale). The “value of the consideration” is declared in the land transfer tax statements for electronic land registrations, or in the land transfer tax Affidavit which is required to be filed with the Land Registrar.

However, the definition of the “value of the consideration” under the Land Transfer Tax Act is broad, and is not always limited to the purchase price stated in an agreement of purchase and sale.  For example, the assumption of any liabilities (e.g. a mortgage), or outstanding encumbrances on the land (e.g. lien on the property) may also be included in the “value of the consideration”.

Further Information

http://www.fin.gov.on.ca/en/tax/ltt/prescribedinfo.html

Contact Information

Name: Scott Blodgett

Email: Scott.Blodgett@ontario.ca

Organization: Ministry of Finance

Sub-Organization: Communications Services Branch

Appendix A: Ontario – Land Registry Offices

Land Gegistry Offices

Appendix B: NRST and Additional Information Collection – Comparison

  NRST Additional Information Collection
Effective date April 21, 2017 April 24, 2017
Grandparenting NRST does not apply to binding agreements of purchase and sale signed on or before April 20, 2017 and not assigned to another person after April 20, 2017. N/A 
Geographic Area Greater Golden Horseshoe Region (GGH) Ontario
Type of Property Land that contains:
  • at least one and not more than six single family residences.
Land that contains:
  • at least one and not more than six single family residences, or
  • agricultural land.
Applicable Transferees (e.g. Purchasers) The data will only show those who were subject to the tax (foreign entities, and taxable trustees);
  • Foreign entities:
    • Foreign nationals, or
    • Foreign corporations
  • Taxable trustees, means a trustee of:
    • a trust with at least one trustee that is a foreign entity, or
    • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity
All persons who purchase or acquire the applicable land (see above) in Ontario.

This includes the following:

  • Canadian citizens and permanent residents of Canada;
  • Canadian corporations;
  • Foreign nationals
    • Persons nominated under the Ontario Immigrant Nominee Program;
    • Protected persons (refugees);
    • Spouses of Canadian citizens, permanent residents of Canada, nominees or protected persons;
  • Foreign corporations; and
  • Trustees, nominees, agents, or similar arrangements.

Transferees Excluded or Exempt1

  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust
  • Nominee:
    • A foreign national who is nominated under the Ontario Immigrant Nominee Program
  • Protected persons (refugee):
  • Spouses:
    • A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person
  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust

[1] In order to be eligible for an exemption from the NRST, the purchaser must meet all requirements (e.g. certification to occupy the land as a principal residence), and the land must be held exclusively by the transferee and their spouse (and potentially other eligible persons).

Note: For exclusions relating to trustees of mutual fund trusts, REITs, and SIFT trusts, the trustee must exclusively hold title (or must hold title with similar trustees or other eligible persons).

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