Buying property in the Northwest Territories involves understanding closing costs, particularly Land Titles Fees, also known as the land transfer tax in other Canadian provinces. This guide covers what you need to know about the Northwest Territories Land Transfer Tax, how to calculate it, and other costs to consider when purchasing property in this unique area.
What is the Land Transfer Tax in the Northwest Territories?
The Northwest Territories (NWT) do not have a traditional land transfer tax (LTT). Instead, homebuyers pay Land Title Fees when transferring property ownership.
Land Title Fees in the Northwest Territories are regulated by the territorial government and outlined in the Land Titles Act and the Land Titles Tariff of Fees Regulations. These fees generate revenue for the territory while covering administrative costs associated with property transfers and record-keeping.
How Much Are Northwest Territories Land Titles Fees?
Land title fees in the Northwest Territories are calculated based on two primary factors: the property value and the mortgage amount placed on the property. According to the official 2022 Land Titles Office Schedule of Fees (which remains current for 2025), the fee structure is as follows:
| Fee Type | Value | Fee Amount |
|---|---|---|
| Property Value Fee | Up to $1,000,000 | $2.00 per $1,000 of value (minimum $100) |
| Property Value Fee | Greater than $1,000,000 | $2,000 plus $1.50 per $1,000 of value exceeding $1,000,000 |
| Mortgage Fee | All values | $1.50 per $1,000 of the mortgage amount (minimum $80) |
The Northwest Territories government has maintained this fee structure for several years, providing stability and predictability for property buyers planning their purchases.
How do you calculate NWT Land Titles Fees?
- Calculate the fee on the property value
- Calculate the fee on the mortgage amount
- Add both fees to get the total Land Titles Fee
Example 1: Property Under $1,000,000 in NWT
For a property valued at $700,000 with a mortgage of $500,000:
Step 1: Calculate the property value fee ($)
- 700,000 ÷ 1,000 = 700
- 700 × 2 =1,400
Step 2: Calculate the mortgage amount fee ($)
- 500,000 ÷ 1,000 = 500
- 500 × 1.50 = 750
Step 3: Calculate the total Land Titles Fee
For this example, the total Land Titles Fee would be 1400 + 750 = $2,150.
Example 2: Property Over $1,000,000 in NWT
For a property valued at $1,200,000 with a mortgage of $960,000:
Step 1: Calculate the property value fee
- For the first $1,000,000: (1,000,000 ÷ 1,000) x 2 = $2,000
- For the remaining $200,000: (200,000 ÷ 1,000) × $1.50 = $300
- Total property value fee: $2,000 + $300 = $2,300
Step 2: Calculate the mortgage amount fee
- $960,000 ÷ $1,000 = 960
- 960 × $1.50 = $1,440
Step 3: Calculate the total Land Titles Fee
For this example, the total land title fee would be $2,300 + $1,440 = $3,740.
Rebate and Exemptions to Land Titles Fees in NWT
NWT does not offer land transfer tax rebates for first-time home buyers.
According to the official Land Titles Office Schedule of Fees, the following transactions are exempt from Land Titles Fees:
- Crown grants for land for which no title has ever been issued
- Applications to issue a title to Her Majesty or the Commissioner under section 57 of the Land Titles Act
- Plans prepared and filed in whole under the Canada Lands Surveys Act or any other Act of Canada.
- Notice of change of address
Most typical property transactions between individuals or businesses will require payment of the standard Land Titles Fees. These exemptions primarily apply to government-related property transfers rather than regular residential or commercial transactions.
Source: Land Titles Office Schedule of Fees 2022
How Do Land Titles Fees in NWT Compare to Other Provinces?
Land title fees in the Northwest Territories are generally lower than traditional land transfer taxes in other Canadian provinces. This makes NWT potentially more affordable from a closing cost perspective than provinces with higher land transfer tax rates.
For example, in Ontario, land transfer tax on a $500,000 property would typically be around $6,475, while in the Northwest Territories, the Land Titles Fee for the same property value (assuming a $400,000 mortgage) would be approximately $1,600 – a significant difference of $4,875.
This lower fee structure can represent substantial savings for homebuyers in the Northwest Territories, particularly for higher-value properties where the difference becomes even more pronounced.
Read on to know how different regions in Canada charge their Land Transfer Tax:
- BC Property Transfer Tax
- Ontario Land Transfer Tax
- Alberta Land Transfer Tax
- Saskatchewan Land Transfer Tax
- Nova Scotia Land Transfer Tax
- Quebec Welcome Tax
FAQs about Northwest Territories Land Transfer Tax
When Do I Pay Land Titles Fees in Northwest Territories?
Land Titles Fees in the Northwest Territories are paid at the time of closing as part of your overall closing costs. These fees are typically collected by your lawyer or notary who handles the property transfer process. Your legal representative will calculate the exact fee amount based on your property's purchase price and mortgage amount, then include this cost in the total funds required to complete your transaction. The fees are then remitted to the Land Titles Office on your behalf when the transfer documents are registered.
How can I minimize my closing costs in Northwest Territories?
To minimize closing costs in Northwest Territories, consider negotiating with the seller to cover some fees, explore first-time homebuyer assistance programs, and compare legal service providers. The Home Purchase Program offered by the Northwest Territories Housing Corporation can provide down payment assistance of up to 5% of the purchase price for eligible applicants, significantly reducing your upfront costs.
What documentation do I need when paying land titles fees in NWT?
When paying land title fees in Northwest Territories, you need the transfer document, mortgage documentation, government-issued ID, and proof of property value. Your lawyer or notary will prepare these documents and calculate the exact fees payable based on your specific transaction details. The Land Titles Office requires proper documentation to process the property transfer and register the new ownership.
While Land Titles Fees in the Northwest Territories are generally lower than traditional land transfer taxes in other provinces, they still represent a significant closing cost that must be factored into your budget.
Working with experienced professionals, including a mortgage broker, real estate lawyer, and real estate agent familiar with the Northwest Territories market, can help ensure you navigate the property purchase process successfully.
