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Buying Services for Home Buyers


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"The difference between getting somewhere and nowhere is the courage to make an early start. The fellow who sits still and does just what he is told will never be told to do big things." - Charles M. Schwab

 
Congratulations!  If you have decided to purchase a property, or are thinking about buying one, you'll be joining the ranks of hundreds of families and investors who realize that real estate property ownership offers a number of benefits including building equity, saving for the future, creating an environment for your family and one of the most secure investments. 
 
When you own your own home, condo or investment property your hard-earned dollars contribute to your mortgage. The equity you earn is yours. 
Over time, your property will increase in value. If you own the investment property, the additional benefit to all listed is the income also.
 
Our goal is to help you buy your property and make a wise investment. In the following reports, you'll find some  information you need to make a wise buying decision, and for everything else we are here to help you in person and guide you step by step to best deals in town.
 
We take gentle care for you and your new property. We'll take you through the planning process step-by-step , to help you determine which property or investment is right for you. 
You'll find a host of informative articles and help on mortgages, viewing homes, the offer, bidding wars, negotiating for the best market price, closing details and moving.
 
Please contact us if you have any questions about buying a home and condo or investing in real estate in Toronto or elsewhere in Ontario.
 
We want to earn your business and trust and help you buy the best property for less.  We constantly search for new listing, daily check for price reductions, bank sales, and market conditions and email you daily
all new listings within your requirements.
 
We are experienced and knowledgeable on market trends and prices! Do not be the one to learn on your mistakes! Work with the industry best!
 
Please feel free to call and contact our agents for private meeting and tips on when is the best time to buy, how is the market doing in your area of interest, on all new and hot listings
and info on bank sales and properties with price reduced to sell!  Check important info and order FREE reports below.
 
 
 Tips for HOME BUYERS:
 
Calculate Your ONTARIO LAND TRANSFER TAX: http://www.macnaughtonlaw.com/landtax.htm
Calculate Your CITY OF TORONTO LAND TRANSFER TAX: http://www.nohomebuyingtax.com/
 
 Tips for FIRST HOME BUYERS:  
 
Both the government of Canada and the Ontario government have established programs to assist first time home buyers such as:  RRSP HOME BUYER'S PLAN, the MUNICIPAL LAND TRANSFER TAX REFUNDthe PROVINCIAL LAND TRANSFER TAX REBATEand the FIRST TIME HOMEBUYERS TAX CREDIT.  

 RRSP HOME BUYER 'S PLAN  The RRSP Home Buyer's Plan (HBP) was introduced by the federal government, and allows first time home buyers to withdraw up to $25,000 from their RRSPs tax free to use towards the purchase of a home. To qualify as a first time home buyer, purchaser must not have lived in a home owned by himself or his spouse in the last five years. If both you and your spouse qualify under the Plan, you can each withdraw up to $25,000 from your RRSPs for a total of $50,000.

Before you are entitled to withdraw the money from your RRSP, you must have entered into a written agreement to purchase or build a home that you intend to occupy as your principal residence. The purchase of a cottage, for example, would not qualify for this program because it is not a principal residence.

Money can be withdrawn from your RRSP provided it has been in your RRSP for at least 90 days. If you have signed an Agreement of Purchase and Sale and you have at least 90 days until your closing, you can open an RRSP and make a contribution, receive the tax deferred benefit and then withdraw the same money and put it towards the purchase of your home.
 
Your first repayment is due the second year following the year in which you made your withdrawals. You have up to 15 years to repay the amount that you withdrew under the HBP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew until the full amount is repaid to your RRSPs. If you do not pay the full amount back to your RRSP within 15 years, the amount outstanding will be subject to tax when you file your income tax return in the following year.

What if you don't have any money in your RRSP?

Do not worry, you can still take advantage of the Home Buyers Plan (HBP). If you are earning income, or have earned income in the past few years, you are entitled to contribute to an RRSP. What is not very well known about the HBP is that you can contribute to an RRSP retroactive. Therefore, check to see what your RRSP contribution limit is. It is shown on your previous years Notice of Assessment, or call Revenue Canada.
 
If you need help raising a downpayment, the HBP may be of some use to you. If there are significant unused contributions from previous years, take out a short-term RRSP loan to cover them. After 90 days, you repay your loan by cashing in your RRSP and you use your tax refund for the downpayment on your new home.

A tax refund is an acceptable downpayment if it is in hand at the time of closing. For general information about Registered Retirement Savings Plans (RRSP), visit the website of Canada Customs and Revenue Agency.

banner Canada Customs and Revnue Agency
 

PROVINCIAL LAND TRANSFER TAX REFUND: First-time homebuyers of resale homes may receive a refund from the provincial government of up to $2,000 of the land transfer tax paid. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund. Qualifying purchasers must apply for the refund no later than 18 months after registration of the home if they do not receive the refund at the time of registration. The requirements are as follows:

1. The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
2. If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.
3. The purchaser must be at least 18 years of age.
4. The application for a refund must be made within 18 months after the date on which the conveyance or disposition occurred. (Note that an application for the refund can be completed upon the electronic registration of the conveyance).
5. The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
6. The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP) based refund of land transfer tax.
7. If the agreement of purchase and sale is entered into before December 14, 2007, the home must be newly constructed.

For further information refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-time Homebuyers.

If you require additional assistance, please contact the Ministry of Revenue, Land and Resource Taxes section at 1 866 ONT-TAXS (1 866 668-8297). For information about the refund, visit the website of the Ontario Ministry of Finance.

 

MUNICIPAL LAND TRANSFER REFUND Tronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax.  You may be eligible for a rebate of the MLTT if you are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00. If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed. 

The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.

For property containing at least one, and not more than two, single family residences with a consideration value of:

MLTT Rate

 

Up to and including $55,000.00

0.5%  plus

$55,000.01 to $400,000.00

1.0%  plus

Over $400,000.00

2.0%

 

For all other property with a consideration value: Value of Consideration

MLTT Rate

Up to and including $55,000.00

0.5%  plus

$55,000.01 to $400,000.00

1.0%  plus

$400,000.01 to $40,000,000.00

1.5%  plus

Over $40,000,000.00

1.0%


FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):

MLTT Rate

Calculation

0 to $55,000.00

55,000.00 x 0.005 = $275.00

$55,000.01 to $400,000.00

$344,999.99 x 0.01= $3,450.00

$400,000.01 to $500,000.00

$99,999.99 x 0.02= $2,000.00

Total MLTT= $5,725.00

For information about the refund visit the City of Toronto web site.

HOME BUYER'S TAX CREDIT You will qualify for the HBTC if:
1. you or your spouse or common-law partner acquire a qualifying home; and
2. you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For more information, go to www.cra.gc.ca/hbtc or call 1-800-959-8281.

 NEW HST 13% TAX:  New HST came into effect on July 1, 2010:

1. HST does NOT apply on the purchase price of re-sale homes.
2. But, HST DOES apply to services such as moving cost, legal fees, home inspection fees, appraisal fees, labor for renovations, landscaping and REALTOR® commissions if applicable. It is estimated the average home buyer will likely pay $1200 - $1500 additional cost in HST fees when moving.
3. HST applies to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. (so that's basically a savings up to the first $24,000 hst). For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing if your purchased before July 1st and your home has not yet closed:
Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Is there HST on Rent? 
 If you are currently renting a house, condo or townhouse on a long term bases (or month to month) you are currently not paying GST, therefore, HST will not apply.   However, expect that the Landlord will have increased costs for the goods and services he uses, such as labor for repairs, landscaping etc.   With increased costs to the owner, increases in rental rates in the future might be expected.   

Is there HST on Condominium Maintenance Fees?
Currently there is no GST charged by Condominium Associations.  But as the HST takes effect, many services associated with the common maintenance of the building will be subject to HST.  It makes common sense to expect some adjustments in the future monthly fees.

Is there HST on Commercial Rents:
GST and Commercial GST applies to most of the rentals of commercial real estate properties with limited exceptions.   Therefore expect HST to apply.

With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.

If you have more Questions about the HST, additional details on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222. The HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. 

Please select desired FREE reports and complete the form provided, and call us for all other questions. We are looking forward to meeting and working with you, your family and friends in near future. Your business and referral is our highest compliment.

Please click on CONTACT US and contact any of our knowledgeable and experienced agents for all your buying needs and questions.

Thank you for your business and trust! We promise to help you find the property you want and negotiate the best market price for you!  

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