EDMONTON - Today, Rachel Notley announced that the NDP will help homebuyers and cancel Jim Prentice's staggering 600 percent increase to the Mortgage Tax.
"Families are worried about their jobs and paying for their mortgage," said Notley. "But Jim Prentice is barging ahead with his plan to hike the Mortgage Tax by 600 percent, putting a new hurdle in the path to homeownership. Jim Prentice's Mortgage Tax hike is the worst kind of housewarming gift for homebuyers."
The PC budget increases the variable Mortgage Tax and Land Transfer fees from $1 to $6 for every $5,000 of property value, as of July 1, 2015. It also increases the fixed fees for mortgages, land transfers, and land title registry searches.
Today, Notley announced that the NDP will cancel the PCs' tax hikes on mortgages and land titles, allowing new homebuyers to keep hundreds of dollars in their own pockets.
"Jim Prentice is protecting corporate tax giveaways for the PCs' wealthy friends while making it more expensive for families to buy a home. Clearly, the PCs have the wrong priorities," said Notley. "The NDP will stop Jim Prentice's tax hike on mortgages and land titles. Unlike the PCs, the NDP plan will make life more affordable for families and focus on protecting what matters most to Albertans."
Rachel Notley’s NDP will make homes more affordable for families by cancelling the PC plan to increase Mortgage and Land Title taxes.
- The NDP will cancel Jim Prentice’s plan to increase Alberta’s variable taxes for mortgages and land titles by 600 percent, and reverse increases to fixed fees.
- At a time when families are worried about their jobs and paying their mortgage, the government should not be forcing families to pay more to buy a new home.
- Fees for mortgages and land titles are based on a combined flat and variable fee. These fees are paid when acquiring a new property and new mortgage.
- Under the PC budget, the flat fee for mortgages and land titles will increase by $25. The variable fee for mortgages and land titles will increase from $1 to $6 for every $5,000 of property value.
- The following fees will be effective July 1, 2015:
- Mortgages – Flat fee: Increasing from $50 to $75
- Mortgages – Variable fee: Increasing from $1 per $5,000 property value increments to $6 per increment. This is a 600 percent increase.
- Land Title Transfer / Title creation – Flat Fee: Increasing from $50 to $75
- Land Title Transfer / Title creation – Variable fee: Increasing from $1 per $5,000 property value increments to $6 per increment. This is a 600 percent increase.
- Increases to these fees will only hurt Albertans who are purchasing property and make life less affordable for homebuyers. The impact will be as follows:
- On a house value of $450,000, total land transfer and mortgage fees will increase from $262 to $1,122.
- On a house value of $650,000, total land transfer and mortgage fees will increase from $334 to $1,554.
- The PCs are also increasing the cost of searching the land titles registry from $10 to $15.
- The NDP will cancel the PCs’ increases to variable and fixed mortgage and land transfer taxes. The NDP will retain the 2014/15 rates.
- We will also cancel the increase to the fee for searching the land titles registry.
- The total cost of reversing these tax increases will be $160 million this year.