Quote:
Originally Posted by Wormius
I know 5% is not insignificant, but… is it really a huge deal? It doesn’t seem like it really pushes the affordability factor much.
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It's significant in markets like Greater Vancouver; especially when coupled with exemptions on Property Transfer Tax that only apply to new properties.
Say a first time buyer in Vancouver is purchasing at $700,000.
That's $35,000 saved on GST and $12,000 saved on the Property Transfer Tax.
The PTT also can't be incorporated in your mortgage, so that's $12,000 cash saved which can go towards their down payment and $35,000 saved on the Net price which gets mortgaged.