Property Taxes in Brampton: Is It In Your Budget?

Before buying Brampton homes, it’s vital to understand that the city has some of the highest property taxes in the Greater Toronto Area. Property taxes are different from many other taxes you have to pay. 

For example, income, sales, and corporate taxes rise with inflation, meaning there’s more revenue for federal and provincial governments. On the other hand, municipalities rely on property taxes, which are set year over year. 

 

How Does Brampton’s Property Tax Rate Compare?

While Toronto landlords and homeowners enjoy the most affordable property tax rates in Greater Toronto Area, Brampton has the highest property taxes. In 2022, the residential property tax rate in Brampton is 0.990771%. This means that for a property worth $500.000, the property tax value was more than $4,954. 

The taxes you paid to the City of Brampton cover items such as parks and recreation, fire services, municipal roads, Brampton Transit, bylaw enforcement, and municipal courts. Separately, taxes paid to the Region of Peel cover regional roads, waste collection, public health, water management and treatment, policing, and social services. 

But why are property tax rates much higher in Brampton than in other cities in GTA? For starters, housing prices are lower in the town than in Mississauga, Toronto, or Vaughan. Materials and labor do not change based on the municipality. This makes Brampton one of the most affordable places to purchase a home, but it needs higher property taxes to cover the cost of servicing every property.

Secondly, Brampton doesn’t have as much diverse land used as Vaughan or Mississauga. So, tax rates are usually higher for industrial and commercial lands than residential ones. Commercial properties pay twice the residential rate of the assessed value. 

For example, Toronto has the cheapest property taxes due to its diverse land uses, denser city form, and high property values. It’s cheaper to service neighborhoods with higher density because there are fewer water mains, fewer roads, and fire stations per resident. 

 

 Property Taxes in Brampton: Is It In Your Budget?

 

Can You Afford a Brampton House?

When purchasing a home in Brampton or any other Canadian city, carrying costs such as heating or property taxes are not usually factored into the calculation. Suppose you’re interested in buying a home worth $1 million. In Canada, you must pay a minimum 20% down payment for any property costing $1.000.000 or more. So, you’ll need a down payment of $200.000 or more. 

Depending on what type of rate mortgage you choose (variable or fixed), you may need to pay anything from 1.25% or more. It means a mortgage of a minimum of $2.665 per month. The property taxes can vary from $4.000 to $5.000, while the utilities can reach $200. 

If you want to purchase a property in Brampton, it’s in your best interest to determine your budget. Understanding how much home you can comfortably afford is vital if you wish to get a mortgage or pay the house in cash. Moreover, knowing the associated costs of buying a property can ensure a faster and smoother homebuying process.

Unquestionably, Brampton is a great place to invest in. Brampton is one of the fast-growing cities in the country, and the population is expected to increase to more than 750.000 in the next ten years. So, if you want to buy a house in Brampton, now would be the right time.

 

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