Manitoba is one of the eight provinces in Canada that charges land transfer taxes on land being sold. When you purchase a property, not only do you need to compare Manitoba mortgages rates, you also need to keep in mind closing costs. Land transfer tax falls under the category of closing costs, and can add up to a significant amount.
So, Manitoba land transfer tax is determined by the market value of the property, on the date of registration of a title transfer. It can be calculated according to the following table:
Source:Government of Manitoba, “Land Transfer Tax”
Let’s say that you purchase a home valued at $300,000. Using the table above, a rough calculation may look as follows:
0.5% x ($30,000) = $150
1.0% x ($60,000) = $600
1.5% x ($50,000) = $ 750
2.0% x ($100,000) = $2,000
The total land transfer tax is approximately $3500. You can use our Manitoba land transfer tax calculator to estimate your tax. It’s quick and easy. Our calculator more accurately lists the land transfer tax at $3,650.
Get in touch with a Manitoba mortgage broker who can connect you to a good mortgage rate in your province.