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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 also on newly built year-round cottages.

There are legal expenses in having an attorney, licensed in the province of Ontario, represent you in the purchase of 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 does go right to the high water mark along the shore. In other locations, there may be a 66 foot Shore Road Allowance or a 66 foot Crown Reserve. If so then you may not own that section of land and there may be municipal bylaw 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 and hold title in the same manner as Canadians. There are no differences in the taxes either. Non-residents selling property must pay the Capital Gain tax before the final completion of the transaction or some funds will be withheld, in escrow, pending tax clearance.

4. Where can I get financing?

Locally the Copperfin Credit Union 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 own lake cabin or the warm friendship of neighbors or guests who share the same values you do. With the 65,000 miles of shoreline and over ten thousand islands, Lake of the Woods has it all.

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