Nunavut land transfer tax
Nunavut does not charge a land transfer tax but instead charges a land title registration fee. The fee is based on the value of the property and is calculated as follows:
- 15% tax on the value of the property, if the property is valued at $1,000,000 or less, with a minimum charge of $60
- If the value of the property is greater than $1,000,000, the tax is $1,500 plus 0.1% of the value of the property above $1,000,000
There's also a registration fee for the mortgage when a property is purchased in Nunavut. The fee is 0.1% of the mortgage amount, with a minimum charge of $40.
To demonstrate how the land title registration fee would work in practice, let's suppose you purchased a house in Nunavut for $650,000. You also take out a $500,000 mortgage to finance the purchase. In this case, the land title registration fee would come out to $1,475 ($650,000 x 0.15% + $500,000 x 0.1%).
As an example of a larger purchase, let's assume you purchased a property in Nunavut for $1,400,000 using a mortgage of $1,000,000. The land title registration fee you would owe, would come out to $3,900 ($1,400,000 x 0.1% + $1,500 + $1,000,000 x 0.1%).
Nunavut housing market
Because of its location in northern Canada, the cost of living in Nunavut is high. Despite having a GDP per capita of $89,000, which is well above the national average, many residents in Nunavut struggle to find affordable housing.
In Nunavut's capital city, Iqaluit, along with some of the other major settlements in the territory, average prices for a home can exceed $475,000. Strong population growth and increased economic activity, has led to high demand but little supply of housing in the territory.
Nunavut, with a population of 39,000, is the smallest of Canada's three territories, by population. As part of the Nunavut Act in 1999, the new territory was created from the eastern half of the Northwest Territories.
The territory is divided into three administrative regions. The regions starting from the south are Kivalliq region, Kitikmeot region, and Qikiqtaaluk region, where the capital, Iqaluit, is located.
Nunavut begins from the northern border of Manitoba and extends north, all the way to the most northerly point in Canada. The territory is home to the world's most northern permanent settlement named Alert. At any given time during the year, the population of Alert ranges from 50 to 100 inhabitants. Most of the activity that goes on in Alert is associated with weather monitoring and military intelligence.
The official languages of Nunavut include English, French, and one of the main Inuit languages, Inuktitut. In the 2016 Canadian census, 63% of respondents indicated that Inuktitut as their primary language. 32% of respondents reported English to be their primary language.
Economic output in Nunavut relies primarily on the mining industry, with major gold, iron ore, copper, and zinc mines operating in the region. Tourism, hunting, energy, and government research also play essential roles in Nunavut's economy.