NB Land Transfer Tax
Well all good things must come to an end, back in 2015 I was boasting about the NB land transfer tax being one of the lowest in the country at 0.50%. Well as of April 1, 2016 this doubled and is now 1.00%. Depending on the price or tax assessed value of the home you are buying this could have a significant impact on your closing costs. Your lawyer will collect this amount from you and submit it to the Province of NB on your behalf. Wait for it, I know you are going to ask the question, lol. Unfortunately this amount can not be added into the mortgage. Sorry.
Land Transfer Tax
Did You Know - When you buy a new home there is a land transfer tax? In New Brunswick that tax is 0.50% of the purchase price or tax assessed value which ever is greater. Your lawyer will collect this tax on behalf of the province. Now before you get overly excited about another tax, here in NB the percentage that we pay, 0.50% is one of the lowest in the country. Some provinces pay upwards of 2.0%. This along with the property tax adjustment will make up a big part of your closing costs.