New study shows Toronto has the lowest property tax rate among the 25 major cities in Ontario – Beating Markham, Milton & Richmond Hill at roughly 0.615 per cent.
To put this in perspective, a home priced at $500k in Toronto would require owners to pay $3074 in taxes but a home at the same price in Windsor would require $8,947! Although this may seem too good to be true if you are thinking of purchasing a home in Toronto, you must remember that by keeping taxes down, Toronto faces a number of serious challenges such as housing affordability, public transit, road repairs, etc… All which come with a cost.
A main reason the property tax rates are higher in other cities is because the housing prices are much lower. An average cost of a home in Toronto is around $915,481 while Windsor homes sit at around $337,923.
Another thing to think about are the separate charges the City of Toronto bills homeowners (i.e water consumption, garbage pickup) while some cities in Ontario include all of this on a property tax bill.
Rates in the mortgage market have fallen to the lowest level since September 2017, meaning now may be a good time to think about a 5-year fixed rate. Typically during the busy spring homebuying season, lenders will offer their most competitive rates, and the timing is spot on with the surging of sales in Toronto.
With a 5-year fixed rate by 0.6% in four months shows why buyers should continue to shop around to make sure they are getting the best rate before they lock in a mortgage. With purchases closing in June, the timing is excellent for consumers to take advantage of these new rates!
The best rates can be found (currently) at the following:
Equitable (Fixed: 2.89%, Variable: 2.90%), MCAP (Fixed: 3.09%, Variable: 3.10%), DUCA (Fixed: 2.89%, Variable: 2.95%) and Scotiabank (Fixed: 3.24%, Variable: 3.35%). Also worth noting that fixed rates are the cheaper option above all.
Unless the Bank of Canada cuts it’s benchmark rate, don’t expect variable mortgage rates to go down. However, fixed rates may fall even further – so keep yourself updated!
Do you need the help of an experienced realtor to help you through the homebuying process?
Call Sutton today – we have agents standing by waiting to hear from you!
Sutton Group Realty Systems Inc., Brokerage
416-896-3333 / 905-896-3333