The Real Property Transfer Tax Act requires purchasers of property to pay a one-time tax upon purchase of a property in New Brunswick. On April 1, 2016, the real property transfer tax increased from 0.5 per cent to one percent of the assessed value of a property or the actual purchase price, whichever is higher. This can result in significant increases in closing costs for purchasing a home. For example, transfer taxes on a home purchased for $150,00o would have been $750.00 prior to April 1, 2016. After this date, the transfer taxes would be double at $1,500. In addition to other closing costs (registration fees, title searches, etc), disbursements related to property purchases can feel unpredictable and overwhelming if you are purchasing a property for the first time.
TIP: Budget early for costs related to property purchases and take the time prior to committing to a purchase to speak with your lawyer about possible costs! This can help you avoid unnecessary stress leading up to what is likely the single most expensive investment most people will make–your home!