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Mortgage Agent Licensing Practice Exam · Question

What is the primary function of Land Transfer Tax (LTT) in Ontario for residential property purchases?

Land Transfer Tax (LTT) is a provincial tax levied on the fair market value of the property being transferred, payable by the purchaser (buyer) at the time of c

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Question: What is the primary function of Land Transfer Tax (LTT) in Ontario for residential property purchases?

Answer options:

  • It funds public transportation projects.
  • It is an additional fee paid to the mortgage lender. ✅ It is a provincial tax payable by the purchaser upon closing of a property transaction.
  • It is an annual tax homeowners pay to the municipality.

Correct answer: It is a provincial tax payable by the purchaser upon closing of a property transaction.

Explanation: Land Transfer Tax (LTT) is a provincial tax levied on the fair market value of the property being transferred, payable by the purchaser (buyer) at the time of closing an equity property transaction in Ontario.

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