BMO To Pay All Or Part Of City's New Land Transfer Tax

[webworm]

Very Interesting for folks buying real estate in the City of Toronto. Wonder how BMO is going to do this? My guess is that they will give you less of a rate discount to pay for the Land Transfer Tax. As they say nothing is for free!

http://www.citynews.ca/news/news_16901.aspx

[pitz]

Yeah, its just like those cash-back gimmicks. They just roll it into the debt, and charge a higher interest rate.

Since banks have to pay taxes on interest (but not principal) payments, the bank would have to not only charge a rate high enough to recover their additional outlay, but they would also have to charge a rate high enough to cover the extra taxes they'll be paying on the interest payments you give them.

[Frankie3s]

Pitz is right. If it were so simple why didn't the mayor just ask the banks for the money instead? Someone has to pay it and that person is you!

[gerbil]

TD-Canada Trust responded by extending its own hours on Saturdays

lol

so i guess this land transfer tax only applies to bmo customers.
what about those that deals with the other banks and financial institutions??

[LarryLat]

lol

so i guess this land transfer tax only applies to bmo customers.
what about those that deals with the other banks and financial institutions??

consider voting for a different mayor next time around?