BMO Bank of Montreal to Pay City of Toronto Land Transfer Tax for its Mortgage Customers
New offer eliminates pressure on homebuyers to purchase before new tax takes effect
BMO Bank of Montreal announced today that it will pay the new City of Toronto land transfer tax on behalf of its customers when they arrange a mortgage by February 29, 2008.
Starting today, when a customer who has their everyday banking business with BMO takes out a new fixed, closed mortgage with a minimum five year term, the Bank will cover the new land transfer tax up to 1.5% of the mortgage amount. For example, as of January 1, 2008 a customer who makes an offer on a $400,000 property and closes the sale after February 1, 2008 can now expect to pay the City of Toronto $3,725 in land transfer taxes. With a $300,000 mortgage BMO would cover the new tax on behalf of its customer. Plus, customers can take advantage of BMO’s current five and seven year fixed-rate promotional offer.
“Purchasing a home is the largest investment most of us will ever make,” said Cid Palacio, Vice President BMO Bank of Montreal. “It’s important that Toronto homeowners don’t feel pressured into making a purchase decision based on this new tax.”
According to the Toronto Real Estate Board there has been a marked increase in year-over-year sales activity. Many real estate experts are linking the flurry of activity to buyers rushing to close deals before the deadline so they don’t have to worry about the cost of the new tax.
“We know the impact of this new tax can be significant for potential buyers, particularly when you add up other associated costs of home ownership,” said Alex Dousmanis-Curtis, Senior Vice President, Greater Toronto Division. “Our advice is to speak with a mortgage expert and explore the variety of options available to you before rushing into a decision.”
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