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Bruce & Jake


Short answers to frequently asked questions about purchasing and owning lake-shore property on Lake of the Woods.

1. What other costs are there when purchasing property?

Ontario Land Transfer Tax which is calculated as follows:
  • 0.5% of the value of the consideration for the transfer up to and including $55,000,
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single-family residences.
Use this online calculator to estimate the Ontario Land Transfer Tax.

Harmonized Sales Tax (H.S.T.) is not paid on the purchase price of previously owned cottages. There is H.S.T. of 13% on the purchase price of newly created lots and newly built year-round cottages.

There are legal expenses in having an attorney, licensed in the province of Ontario, represent you in purchasing the property.

Insurance on the cottage property and contents.

2. Do I own the land right to the water’s edge?

In some locations, the land patent goes right to the high water mark along the shore. There may be a 66-foot Shore Road Allowance or a 66-foot Crown Reserve in other locations. If so then you may not own that section of land and there may be municipal bylaws and zoning implications. Application to the local Township or the Ministry of Natural Resources can be made to purchase this section of land. In all cases make sure you understand the situation, as it is important.

3. Can Americans own property in Canada?

Yes. Non-residents of Canada can purchase property in the Sioux Narrows, Nestor Falls, and Morson areas and hold title in the same manner as Canadians. 

Currently, in the Province of Ontario, non-Canadian buyers must pay a 25% Non-Resident Speculation Tax on the purchase price.  This tax applies to all properties that have a cabin or home, it does not apply to vacant land. 

Non-residents selling property must pay the Capital Gain tax before the completion of the transaction or 25% of the sale proceeds will be withheld, in your lawyer's trust account, pending tax clearance.

4. Where can I get financing?

The Copperfin Credit Union in Kenora is active in financing, with approved credit, the purchase of recreational and residential property. There are several branches of major banks in Kenora and Fort Frances.

5. Lake of the Woods?

What an awesome lake! What do you like? Scenic beauty, quiet coves, great fishing, classic sunset scenes, great boating waters be it cruisers or kayaks, rocky points for that great Canadian shore supper, remote wilderness, quiet evening boat cruise to one of several Lodges offering fine dining, historical sites, beautiful beaches, a quiet evening at your lake cabin or the warm friendship of neighbors or guests who share the same values you do. With 65,000 miles of shoreline and over ten thousand islands, Lake of the Woods has it all.

Get In Touch

Northwoods Realty LTD. - Real Estate Brokerage

Phone: 807.226.1024


Office Info

5701 ON-71  Sioux Narrows,  ON  P0X 1N0 

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