Burlington is seeing a growing housing market to meet the needs of its increasing population. By 2051, the City of Burlington’s population is expected to reach 265,000, an increase of approximately 42 per cent according to Stats Canada 2021 census. To address this growth, the city has committed to adding 29,000 new housing units by 2031 and will accelerate the process by introducing two assistive AI pilot projects to streamline the permitting process and achieve its housing goals.
With the Bank of Canada’s commitment to reduce interest rates, and the anticipated drop in mortgage payments, opportunities are expanding for those looking to buy or sell in this desirable suburb of Toronto. Helping Burlington residents understand their property assessments can empower both current and future homeowners to make informed decisions when purchasing or selling a home.
Value matters
According to data released earlier this year by MPAC (Municipal Property Assessment Corporation), nearly 26 per cent of properties in Burlington were valued between $750,000 and $1,000,000 in 2023, and just over 37 per cent were valued between $1,000,000 and $1,500,000.
MPAC’s assessment data provides insights into homeowners’ properties and how they compare to others. AboutMyProperty™, a free online tool, is available to every property owner in Ontario, where homeowners can access detailed property information, learn about how their property was assessed and compare their property value to those in their neighbourhood. If homeowners disagree with their property’s assessed value, they can file a Request for Reconsideration before the deadline, which can be found in AboutMyProperty™.
Understanding value also helps homeowners and first-time homebuyers anticipate and budget for tax obligations. Property taxes are calculated based on assessed home values at a tax rate based on the funds municipalities determine are needed to build and run thriving communities.
Staying informed of the assessed value of one’s home is important for making informed decisions about buying and selling.
How residential property value is assessed
There are more than 200 factors considered when assessing the value of a property, but the five key elements homeowners and prospective buyers should know include:
- Location - the neighbourhood where a home is situated significantly influences its market value. The desirability of the area often plays a crucial role in determining how much a buyer is willing to pay.
- Lot size - the area of a property’s lot is calculated by multiplying the frontage by the depth.
- Total square footage of living area - the exterior of the home is measured to determine the total area of the building. This measurement excludes areas like basements, decks, porches or garages.
- Building age - property value is adjusted to reflect renovations or additions, considering the actual condition of the house rather than its original construction year.
- Construction quality - the type of building materials used and the quality of finishes also play a role in determining a property’s assessed value.
Property assessments versus property taxes
Property assessments are available to both homeowners and local government. In fact, municipalities use these assessments to calculate property taxes.
When it comes to property taxes, each of Ontario’s municipalities decide how much money is needed to support its community services and infrastructure, including maintaining scenic trails like those in Mount Nemo Conservation Area, and funding paramedic services. The municipality then determines the municipal tax rate – this is done by dividing the total funds needed to maintain the city by the total value of properties. In Burlington, the current residential property tax rate is 0.92 per cent. These taxes are then collected from each owner by applying this rate to their property’s assessed value.
While property assessment and tax can be complex, understanding this information will empower current and prospective homeowners to make informed decisions about their property.
For more information about home values, visit: mpac.ca/valuematters.
