Real Estate

Pre-Con Property Taxes

  • Last Updated:
  • May 11th, 2021 4:05 pm
[OP]
Jr. Member
Feb 10, 2021
188 posts
124 upvotes
GTA

Pre-Con Property Taxes

As the title states, looking to gain an understanding on what the property taxes will be on our new home. Is it the purchase price x Municipal Residential Property Tax Rate? Or is it the MPAC appraisal of the home x Municipal Residential Property Tax rate? I understand that the MPAC appraisal almost always comes in lower than the purchase price on the resale side... but is this also the case for a pre construction home?

Thanks!
2 replies
Deal Addict
Nov 13, 2013
2891 posts
1601 upvotes
Ottawa
It should be somewhere around the purchase price when they do the adjustment. With rapid price increases I am not sure how they will do the 2022 assessement as people paid wildly different prices on the same street. If you close next week and in 2022 they do the next assessment they should value your whole street in a similar way at this next year's prices but it's not a perfect science and from my experience when you buy earlier at a lower price but close at the same time you get an advantage (and vice versa).
[OP]
Jr. Member
Feb 10, 2021
188 posts
124 upvotes
GTA
fogetmylogin wrote: It should be somewhere around the purchase price when they do the adjustment. With rapid price increases I am not sure how they will do the 2022 assessement as people paid wildly different prices on the same street. If you close next week and in 2022 they do the next assessment they should value your whole street in a similar way at this next year's prices but it's not a perfect science and from my experience when you buy earlier at a lower price but close at the same time you get an advantage (and vice versa).
Thanks! I was hoping that it wouldn’t be the purchase price LOL.

Reason being is when I look at resale homes currently on the market that are similarly sized with similar lots, theyre taxes are substantially lower than the amount I calculate for using the purchase price X municipal tax rate. Surprisingly (maybe not so much), the resale homes that are similar sized are selling for quite a bit more than I paid for my pre con.

Is there any correlation between these property tax assessment snd the assessment the bank will do? Are they one in the same?

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