Real Estate

Land transfer tax on a house exchange?

  • Last Updated:
  • May 2nd, 2021 1:38 pm
Deal Addict
Feb 17, 2012
1921 posts

Land transfer tax on a house exchange?

Currently I own a 2005 townhome. Purchased used in March 2020. My mom purchased a new build in July 2020, closing September 2021. When my mom gets the house, she will pay land transfer tax. If I transfer my home to my moms name and her new home to my name, will we both need to pay land transfer tax again? Both the houses still have mortgages. But no actual sale will be happening. Just me taking the new home and my mom taking my old home to rent it out.

This is in ottawa.
3 replies
Sr. Member
Sep 29, 2013
930 posts
was told by my lawyer that if there is a mtg, you have to pay the tax.
Deal Fanatic
Jan 15, 2017
5228 posts
Your Mom needs to reach out to her lawyer regarding your plan. My understanding is that this will most certainly be considered a sale of the two properties. You cannot transfer title on the homes and leave the original mortgages intact. The mortgages will have to be discharged and you will have to apply for new mortgages for the new properties. No mortgage lender will allow a mortgage in your name on a property that you no longer own.


Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)