Can the PTT be financed?

If you’ve found a home you plan to buy, your REALTOR® will go over closing costs, including the Property Transfer Tax (PTT).

The PTT is a provincial tax of 1% on the first $200,000 and 2% on the remainder of your home price. For example, the PTT on a $600,000 home is $10,000.

When you register your property title you must pay the PTT, unless you qualify for the First Time Home Buyers’ Exemption.

Financing the PTT

A buyer with a conventional mortgage (more than 20% down payment) may be able to take the PTT out of their equity. If you have less than a 20% down payment you will likely be unable to do this due to lender requirements.

The PTT is a closing cost and closing costs can’t be financed as part of a mortgage. Mortgage insurance providers such as CMHC stipulate that applicants must be able to cover closing costs.

Lenders, however, look at each situation on a case-by-case basis. If a buyer has good credit and the ability to pay monthly costs, a lender may provide a line of credit or a loan to finance the PTT.


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