Thread: Mortgage Rates
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Old 2013-02-12, 06:15 PM
NewPurchaser NewPurchaser is offline
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Quote:
Originally Posted by gerapau View Post
No it doesn't. That tool is meant to give you a rough estimate of your taxes. Your actual taxes, in Ontario, will be based on your MPAC assessment. Your MPAC assessment will not be based on the sale price of your home but rather on what they estimate your home is worth. For the most part most options will not impact your MPAC assessment.

Rather, things like your home's square footage (with first floor square footage worth more than second floor square footage worth more than basement square footage), the number of bathrooms, your lot size, etc... Are used to determine your assessment. It is not uncommon to find two similar homes in the same neighborhood that have the same assessment even though one was sold with $75,000 in options while the other had no options.

That said, when MPAC is doing their assessment they will ask you for your sale price and if it is ALOT more than other similar homes then they may assess your home a bit higher.

For more info on MPAC go to their website at www.MPAC.ca.

Gerapau,

Conversely, if they assess higher property taxes for your new home, when other similar homes in the area have comparable current market value (even though their purchase price say 7 years ago was $250K less), can you appeal to MPAC?

Say newly built home with builder is $750,000. Similar home (lot size, square feet and features) across the street for which sale transaction took place 7 years ago was $500,000 at the time, however it's market value is $700,000 now ($50,000 lower value is entirely due to age of homes) (but no transaction has taken place on paper for the older house in the past 7 years). Do you believe these 2 homes would have similar property taxes?
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