For the past 20 years, house prices have continued to rise and are expected to continue to do so, according to Jason Mercer, TREB‘s Senior Manager of Market Analysis. Here’s a brief breakdown of his report.

What Drives Toronto House Sales? A balancing act between Market Based Factors and Government Intervention

Market-Based  Factors

Population  Growth- Historically, sales follow population trends and Toronto has an average of 80,000 immigrants per year since 1996 and this projected population growth is expected to continue in the same manner for the next several decades. Toronto has the largest share of foreign born population (almost 50%) compared with other major metropolitan cities in North America.  Impact: Increase in house sales.

Income – The Bank of Canada expects the real GDP to have sustained growth in the next year. Since income growth in the GTA follows GDP growth, it’s expected to go up 2.5% in the next year with the average household income of $106k in 2013. Impact: Increase in house sales.

Borrowing  Costs – The Bank of Canada target for the overnight lending rate is expected to move higher, but not to 1980-90 levels. A more moderate growth of 2 basis points is predicted for 2013. The outlook for the average 5 year fixed rate mortgage is predicted to be near the 6% mark with plenty of room for discount mortgages at lower rates. Impact: Increase in house sales, stay the same, decrease in house sales.

Government  Intervention

Taxation – eg. Land Transfer Tax Impact: Decrease in sales.

Lending  Regulations –eg. Changes in amortization period. Impact: Decrease in sales.

Stricter lending practices has lead to a decrease of 650 sales per month since 2010. And they may well get stricter. Eg., Further reducing the amortization period to 25 years or increasing the minimum down payment up to 20-25%.

Borrowing  Costs

What about inflation and how it affects mortgage rates? Are we headed for a crash like in the U.S.?

Developed countries have gotten inflation under control since the 70s from 8% down to 2%. The Bank of Canada put into practice a policy of explicit inflation targeting between 1995-2010 that resulted in the lowest volatility of inflation for decades in Canada.

Don’t expect a crash like in the US to get you that size and quality of house you’re kicking yourself for not buying two years ago. Check out this very interesting infographic for further information about how Canada has stricter underwriting standards (among other things) compared to those of the United States that shield Canada from a housing bubble crash.

Summary

GTA Number of Sales forecast for 2013 is predicted to be 90,000, down from 93,000 in 2012.

The Average Price will rise to $525,000 in 2013, up from 505,000 in 2012.

• Barring  a  major  economic  calamity  external  to  Canada,  higher borrowing  costs  over  the  next  two  years  seem  like  a  sure  thing.  We   have  already  seen  posted  fixed  rates  increase.
• Sales  will  be  up  year-over-year  in  2012,  but  will  decline  in  2013  as   higher  borrowing  costs  and  strong  price  growth in  2012  cause  the   affordability picture  to  be  less  of  a  market  driver.
• The  listings  situation  will  improve  in  the  second  half  of  2012,  but   supply  will  remain  below  what  is  required for  a  balanced  market   and  more  moderate  rates  of  price  growth. With the projected population growth, the listings won’t meet the demand.

*from the Torontomls Jason Mercer report May 2, 2012.

So what does this all mean?

Bottom line: Tight market conditions mean price growth. If you’ve been meaning to buy a home this year and can afford to do so, do it now before the lending practices get stricter and the mortgage rates & prices go up.

If you’re a first time buyer, banks are starting to tighten up the screws making it more difficult for new buyers entering the market. If you are eligible now for a mortgage with 15% down and a 30 year amortization, it might be a good idea to talk to a mortgage professional sooner rather than later to discuss your options.

The last thing I want to do is convince people that they should buy a house when they can’t afford one. If you’ve been sitting on the fence, my advice would be to talk to a mortgage broker to get a real picture of where you stand now; things have changed and may change further in the next few months.

My goal is to find the best possible home for my buyers in their comfortable price range, whatever that may be.  If you’re just starting to think of buying, I can recommend a couple of excellent mortgage professionals who’d be glad to chat with you with no obligation.

Have anything to say? Any questions about the above? Need some help to find out if you can afford a house or not?

Give me a call at 416 805 8084 or send me an email at danyelle@bosleyrealestate.com!

For some consumers, the most daunting aspect of the buying or selling process is the move itself.

Moving is not only labour-intensive, but it can also unleash a range of emotions at a difficult time. If the catalyst for the move is a family death, divorce or other major lifestyle change, a bad moving experience can rub salt in the wound, aggravating an already challenging situation.

Many resources are available to determine whether a mover is reputable. The Canadian Association of Movers (CAM), the Better Business Bureau, and any of the major national van lines (such as Allied, Atlas, Mayflower, North American or United) are all good sources. Also check out the Consumer Beware page through the Ontario Ministry of Consumer Services for movers to avoid.

One of the best tips is to place more weight on reputation than price, says John Levi, president of CAM. With about 350 members across the country, CAM represents Canada’s largest moving companies, many small to mid-sized movers, national van lines, suppliers and many international movers. It also works with government agencies to represent member issues and with consumers to provide referrals and assist with complaints.

“Many people don’t realize that their prime concern should be a having a good moving experience, not getting the cheapest price,” says Levi, who has been with CAM for 16 years. Be sure your clients understand that the lowest quoted price does not actually guarantee the lowest cost or a good-quality job, he advises.

Consider the value of your possessions as well as the potential cost of loss, damage, tardiness or claims, he says. All of those factors should be weighed to determine the move’s total price tag, and doing some homework before selecting a mover is well worth the time.

Because the moving industry is largely unregulated, Levi warns that choosing a reputable mover is vital in avoiding problems. His organization receives about 150 complaints a year about movers. The most common complaints pertain to overcharging, lateness, damage or loss, but issues also arise with inexperienced crews, poor communication, and failed promises.

To join CAM, a mover must be in business for more than a year, be reputable, and undergo a due diligence and verification process. The association checks out companies through the Better Business Bureau and asks other members to offer a fair opinion on potential members.

Loss or damage claims can end up being drawn out for years, says Levi. Consumers who take steps to do some preliminary research usually avoid claims, he adds.

Many problems are preventable. A good mover should be prepared to answer questions and provide clear expectations about the move for the individual or family. Consumers can spare themselves grief simply by asking potential movers questions such as:

What is your experience with moves like mine? How experienced is your crew? What is the bottom-line price? What is the not-to-exceed price, including all charges and taxes? What happens if loss or damages occur, and how will we be protected?

The most important step, often overlooked, is getting an in-home estimate. “Consumers can get sweet-talked over the phone by a company that claims it can do the job,” says Levi. “Unfortunately, that’s an invitation to disaster. If movers are willing to give you an estimate by phone, don’t hire them. If they can’t see your place or belongings, they have no idea how the move will go.”

An experienced mover will visit the consumer at home and examine furnishings and possessions, give a more reliable estimate, and outline difficulties that might occur during the move, he adds.

Remind your clients that damages sometimes can’t be helped, adds Levi. “There isn’t a mover around who hasn’t scratched, nicked or lost something – it happens,” says Levi. “Moving big objects through small openings means these things sometimes occur, but the crux of the matter is how the mover deals with the issue. A good mover gets the repair done quickly or pays the consumer for loss or damage if the claim is valid.”

Written estimates are vital, he adds. “Make sure that you get the company’s promises in writing,” warns Levi. “If they won’t put it in writing, don’t move with them. It’s as simple as that.”

Sharing these insights (and the tips below) with your clients before they pick a mover can make a world of difference to the outcome. It’s an extra step with the best possible reward – a happy ending.

Urge clients to do research when choosing a mover John Levi, president of the Canadian Association of Movers, says these steps will help consumers to have a positive moving experience.

Pick three – Choose at least three companies and then check them out. Ask questions and check their reputation through available resources (see below) before settling on one.

Match them to the job – Choose a mover with the resources and crew to suit your situation. A large family move across the country and a one-bedroom condo move across town are completely different. Verify the company’s capabilities with CAM, or you may end up paying more than you thought — or learning that your mover can’t do the job and has handed it off to someone else.

Invite them over – Refuse to accept an estimate delivered by phone, fax, text or email from a mover who has not assessed the space in person. An on-site estimate is essential.

Get it in writing - Get every promise made in the moving estimate in writing, along with dates of the move and specifics on what will and won’t be moved, and who will be doing the packing. If you promise to de-clutter and pack, you must follow through or else extra charges may be added.

Book well in advance – After you’ve chosen a reputable company, ensure that the mover has lots of time to meet your expectations.

Schedule with care – Avoid booking a move the same day as a property closing or a popular moving date. Closing dates have their own problems. There may be a deadline to vacate on one side of the move, while keys or titles are not ready on the other. Such delays can mean movers sit and wait at a site, creating extra costs and stress. Avoid the first and last days of the summer months like the plague. These are a mover’s busiest times, and steering clear of those dates will boost your chances of getting an experienced crew.

Be realistic – Damage and loss can happen, although good movers will do their best to prevent or minimize them. Ask questions about company policies on loss and damage and discuss concerns about particular items with them.

For more information – Before hiring or recommending a mover, you can contact the following organizations:

• Consumer Beware page, Ontario Ministry of Consumer Services website
• Better Business Bureau
• Canadian Association of Movers – 1-866-860-0065

Excerpt from the EDGE newsletter for Realtors.

• Excellent Marketing Plan–  reach and invite the most people.
• Staging–  people imagine themselves living in your home.
• Beautiful Professional Photos– attracts people to come and see your house in the first place!
• Favourable Market Conditions–something you have little control over.

Things that can cause a house to languish on the market and sell for less:

• Overpricing– you don’t attract the people that can afford your house in that price range, and you repel those that can.
• Clutter, messiness and things in disrepair– MOST people can’t see beyond it.
• Bad photos or worse, No photos– people will suspect the house needs a lot of work and might skip seeing your house entirely.

I’ve seen ALL sorts of things when showing homes to my buyer clients. You’d be surprised what state some houses are in!

THE BOTTOM LINE: you want as many targeted buyers to come and see your home as possible. That way you increase your chances of selling it faster and if you’re lucky, have more than one person interested in buying it.

Moving is pretty stressful as it is, selling your home is even more stressful. If you need some help in figuring out what to do and how, give me a call and I’d be glad to chat with you!

We had an idea that we wanted a lush , little quiet oasis and started to form a plan of what we wanted.

I thought a low maintenance garden was a good idea, since we wouldn’t have access or room for a lawnmower.   I went to the garden centre to get inspired and found a beautiful coral bark Japanese Maple tree and I fell in love.  From there, I got inspired to do a pseudo Japanese themed zen garden with pea pebbles and black slate tiles for ground cover with perennial bamboo and tall grasses for privacy.

I designed a built-in bench with clean lines that flowed into  L shaped raised boxes and my husband built it in a week. We planted the grasses, some vines and the Japanese Maple, along with some herbs and some small colourful plants and… wow, did it ever turn around the space!

Instead of a drab depressing little grey square, it turned into a surprisingly big feeling green retreat. I love to sit in the back with a glass of wine to read or eat dinner outdoors surrounded by green. It reminds me of some temples I visited in Asia, and it wasn’t even that difficult to do.

If you’re buying a house in downtown Toronto, space is at a premium and sometimes the compromise is a smaller yard. Don’t be discouraged! With a little imagination, turn it around to your advantage. Make it a gorgeous and well-used space that you can enjoy and at the same time, add value to your home.

Here are few pictures that might inspire you to see an otherwise small drab space, into a wonderful green cocoon with potential! Some images below have  a zen like minimalist feel while others are more country English garden. If you’re faced with a big brick wall in your backyard, VINES are your friend! Transform a flat surface into a wonderful green, red or orange wall.

I told him that in this competitive market, where the prices are going through the ROOF, you might be better off looking in areas that have signs of being in transition that are NEAR prime areas.

So where is that then? Before I go into it, I just want to emphasize that choosing a viable property HINGES on a few things like: your financial goals, your budget, quality of the building that plays into attracting quality tenants, and cash flow.

For more details, read this. The bottom line is, the choice of the property itself has to make financial sense. There is no way I want any of my clients getting in way over their heads.

So here it is, a secret no more.

• There’s a pocket at St Clair and Dufferin in the Oakwood-Vaughn area that has sturdy detached housing stock selling for much cheaper than its neighbouring hoods, Regal Heights, Cedarvale and Wychwood. There are amenities nearby within walking distance, Wychwood Barns, some pubs and restaurants, and it’s close to the TTC.

• Also take a look at the rapidly up and coming Wallace Emerson area. Some parts of it are near the subway line, which is a big plus. There’s Dovercourt Park, many new shops and restaurants popping up on Bloor within walking distance. The prices tend to be cheaper here than below Bloor and its neighbouring Dufferin Grove area.

• Deals to be had in prime neighbourhoods tend to be on busier roads such as: Ossington, Dovercourt, Dufferin, parts of Keele, and Davenport.

Scott, a long time real estate investor and renovator, said something interesting about gauging where the market is going. No one knows for sure what is going to happen, but he said he likes to keep a close eye on when mortgage rates start to rise because that’s when house prices tend to start to flatten out. The thing to keep in mind is that although houses prices may flatten a bit, the mortgage rates are higher than previously thereby equalizing or worsening the affordability.

When looking at a long-term investment, focus on the affordability of your monthly mortgage payments and cash flow. Remember, this is not a flip for a quick buck. Real estate cycles go up and down constantly. You don’t need to sell in a down market if you’re looking at a long-term investment. Your goal is to hang onto it, keep the monthly mortgage payments and expenses affordable so you can weather any fluctuations and let the tenants pay off your mortgage. That way you will be able to enjoy a nice nest egg for your retirement.

Want some Hot custom listings sent to you? Contact me at danyelle@bosleyrealestate.com or call me directly at 416 805 8084.

I look forward to chatting with you!

My advice: Get your foot in the door first, fix up the immediate essentials like electrical and plumbing, then the cosmetic things can be done over time once you’ve saved up.
We bought a 100 year old house in Brockton Village that had really crazy spaceship looking chandeliers (think: massive crystal ball mother lode), busy tiles in the bathroom and a scary “Midnight Express” prison looking basement. Since we had to do some electrical work, we didn’t have much left over for the rest when we first moved in.

Over time, we planted bushes and trees in our cemented over backyard, fixed the front porch, redid the bathroom, the basement and finally, the kitchen. Five years later, our house’s value has doubled and we love living here. (Dare I say, we get compliments on it.)

By buying a house that does need some work, YOU pocket the increase in value when it comes time for you to sell. Plus, you can make it your own.

Here’s what you can do:

• Paint- From walls, kitchen cabinets, to basement floors. Did you know tile could also be painted over? This fix up gives you the most bang for your buck. Check out my “How To” board on Pinterest to see how.

• Light fixtures- Go to the Japanese Paper Place on Queen West and take a lamp making course or buy some cheaper ones at Ikea. I know Home Depot stocks retro looking school house lights.

• Hardware- Get some nice modern looking knobs, handles and faucets at many hardware stores around the city. With a paint job on your bathroom or kitchen cabinets, these seal the deal in completing the look.

• Throw rugs- These can hide a multitude of sins from battered hardwood to eyesore floor tiles. Get large ones or small long ones for hallways. You can even get that berber carpet looking one. If you don’t love it, remember it’s temporary.

• Remove Popcorn ceiling- Many people don’t know that in some cases, you can scrape it off instead of re-drywalling the ceiling. Check this video out:


 

• New toilet seat-Depending on your taste, replace the old one with modern coloured ones. If the bathroom suite is pink or green, have fun with it and include it in the overall design. If you can’t fight it, work with it. Take a picture and show people what it used to look like before.

• Secondhand furniture- It can be refurbished or painted. On our neighbourhood listservs, BrocktonNeighbours and DufferinGroveFriends, many neighbours offer furniture for free.

• Buy secondhand or almost new appliances off Kijiji or Craigslist. You’d be surprised what you could find there. One neighbour got a fantastic professional range stove at a great price.

• Make your own cushions and curtains- Designer Fabrics has beautiful material and a huge selection to choose from. They even have everything you need including:curtain rods, cushion stuffing, outdoor fabrics and double width material. To make curtains, I bought a nice simple gauzy fabric that already had a sewed open pocket. All I had to do was slide the curtain rod through it and hem the bottom. (You can also get that iron on interface that can be used to hem the curtain with a hot iron. No fuss no muss.)

So there you go.  Those are just a few cheaper options to beautify and update your home until you can save for more costly renovations. If you’re just deciding whether to buy or not, don’t be scared off by what you hear on the news or read in the papers. There are still deals to be had if you’re willing to be patient and put in a little bit of elbow grease.

For custom listings of homes for sale that are in your budget, please send me an email at danyelle@bosleyrealestate.com or phone me at 416 805 8084. I’d be glad to send you some information or have a chat about your needs.

Help your community, support local artists and possibly win  beautiful one of a kind artwork! Coming up next month: Artworks, inspired by the idea of “shelter”, are auctioned and raffled off  with all of the proceeds going to one of the many deserving homeless programs in Toronto. (PARC and Edmond Place) Have a look at the featured artists on the website below. (One of which is a friend and beautiful scarf maker, Meghan Price, from String Theory)

This year’s event takes place on April 13th at St John’s Parish Hall on Cowan Ave in Parkdale.

Design Hope Toronto is a volunteer initiative that raises funds and awareness for local organizations dedicated to helping the homeless.

Here’s a mortgage product that might give you the competitive edge. Searching for your perfect home can be a frustrating experience– you work hard to find it, but too often lose out in multiple bids; or worse, you see  several properties that almost meet everything you’re looking for but there is something still missing, not right, incomplete. I’ve had this situation occur over and over again this season while helping buyers looking for homes in Brockton Village and other neighbourhoods in the West End.

“The house has the right bones, is in the neighborhood we’re looking for, but the kitchen is dated, the floors need to be refinished and that oil furnace will need replacing”.

CMHC’s Purchase Plus Improvements is a relatively unknown little gem.

This program helps home buyers finance up to 95 per cent of their home’s renovation costs at the time of closing by adding it to their total mortgage amount.

Let me show you how it works…

Standard Purchase Purchase Plus Purchase

Purchase price:                           $400,000.00                  new mtg**:$440,000.00

Downpayment 5%:                     $20,000.00                                            $22,000.00

1^st mortgage required:             $380,000.00                                         $418,000.00

CMHC premium

at 30 year am:                                  $11,210.00                                             $12,331.00

Total Mortgage on closing:        $391,210.00                                          $430,331.00

** Assuming $40,000 of renovations were to be completed

• You can now bid on a house that needs some work and may not be in as competitive a situation as if they were offering on an already renovated home.

• You can finish the home to your needs and wants and not have to settle for someone else’s.

• You may end up not having to put in as many offers on as many homes and losing out in bidding wars.

Features and Benefits

• A purchaser can renovate a home and have the bank finance up to 95% of the renovation cost.
• A purchaser can renovate the home to their liking and not that of the vendor.
• A purchaser maintains better management of the work being performed because they have tighter timelines and have complete control of the money.
• A purchaser can finance the desired renovations at a fraction of the cost of other methods.

Possible pitfalls…

• Renovation money must be available in order to complete the work and the funds are reimbursed back to the purchaser once renovation is confirmed to have been finished.
• Only value enhancing renovations are allowed under this program. That is, updating the kitchen would be seen as value enhancing, but getting  a flashy hot tub installed, not.
• It is preferred that the work is completed by a third party contractor and not the purchaser.

Possible solutions…

• A relationship with a contractor can be established who will allow for a good faith deposit, usually a percentage of the work being quoted. (Let’s say $5-7K)  Purchaser can provide the contractor with a letter from the solicitor confirming the funds are in the solicitor’s Trust Account that can be ear marked for the contractor.  Said funds can then be directed to the contractor upon completion of work. Note: An established contractor is more likely able to fund himself/herself until they receive the released money.

If you’d like to receive more information about this product and/or a referral to a reputable qualified mortgage broker, send me an email and I’d be glad to do it!

When evaluating a house’s worth it’s important to look at the most recent comparable properties that sold nearby. You also look at a variety of factors including: parking, size of lot and house, quality of finishes, number of storeys, location, proximity to ttc, to name a few. These  stats below are great for comparing average prices in neighbourhoods as well as getting a grasp for what people are willing to pay to live here, from the lowest to the highest. If you’re a buyer,  do you need help figuring out where you can afford to buy?  If you’re a seller and you want to know your home’s worth, contact me and I’d be glad to chat with you and give you a free analysis. ———————>

BROCKTON VILLAGE

Average price 2012: $493,000

Average price 2011: $480,000

Highest price: $605,000

Lowest price:  $430,000

Average days on market:  17

Number of houses sold: 6

DUFFERIN GROVE

Average price 2012: $911,000

Average price 2011: $790,000

Highest price: $911,000

Lowest price:  n/a

Average days on market: 7

Number of houses sold: 1

DOVERCOURT VILLAGE

Average price 2012: $820,000

Average price 2011: $485,000

Highest price: $890,000

Lowest price:  $780,000

Average days on market: 14

Number of houses sold: 3

TRINITY BELLWOODS

Average price 2012: $1,043,000

Average price 2011: $910,000

Highest price: $1,400,000

Lowest price:  $697,000

Average days on market: 8

Number of houses sold: 3

BEACONSFIELD VILLAGE

Average price 2012: $1,048,000

Average price 2011: $663,000

Highest price: $1,200,000

Lowest price:  $895,000

Average days on market: 10

Number of houses sold: 2

RONCESVALLES

Average price 2012: $813,000

Average price 2011: $600,000

Highest price: $915,000

Lowest price:  $695,000

Average days on market: 8

Number of houses sold: 3

PARKDALE

Average price 2012: $749,000

Average price 2011: $575,000

Highest price: $609,000

Lowest price:  $488,000

Average days on market: 15

Number of houses sold: 3

WALLACE EMERSON

Average price 2012: $534,000

Average price 2011: $492,000

Highest price: $795,000

Lowest price:  $658,000

Average days on market: 14

Number of houses sold: 3

THE JUNCTION

Average price 2012: $534,000

Average price 2011: $492,000

Highest price: $795,000

Lowest price:  $658,000

Average days on market: 14

Number of houses sold: 3

HIGH PARK NORTH

Average price 2012: $847,000

Average price 2011: $774,000

Highest price: $1,255,000

Lowest price:  $565,000

Average days on market: 17

Number of houses sold: 17

HIGH PARK SOUTH

Average price 2012: $1,016,000

Average price 2011: $1,345,000

Highest price: $1,750,000

Lowest price:  $1,000,000

Average days on market: 7

Number of houses sold: 3

** Based on MLS statistics from February 2011 and 2012

Thinking of buying a home this year and not sure if you can afford it? I remember when I first started looking; it was pretty overwhelming trying to figure out what I should do first and what was available out there. The first year feels especially expensive so I thought I’d put together a list of programs to read up on that might help cut costs.

First Time Home Buyers Programs

RRSP Home Buyers Plan

Ontario Land Transfer Tax Credit

Toronto Municipal Land Transfer Tax Credit

First time Buyers’ Tax Credit

First Time Home Buyers RRSP Plan (up to $25,000)

The First Time Home Buyers RRSP Plan (HBP) allows first time home buyers to withdraw up to $25,000 from RRSPs to buy or build a home.  The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $25,000 is withdrawn, the minimum annual repayment is $1,667. If less than the minimum is repaid in any particular year, the balance is added to the taxpayer’s income. To qualify for the Home Buyers Plan, an individual must not have not owned a home ever, anywhere in the world.

Follow the link for more information on the RRSP Home Buyers Plan.

First Time Home Buyers Ontario Land Transfer Tax Credit (up to $2000)

The Land Transfer Tax Credit is a refund of the cost of the provinces land transfer tax up to a maximum of $2,000. This will allow first time home buyers to purchase a home up to $227,500 without having to pay any land transfer fee. Any amount higher than $227,500 is taxed a rate of approximately 1.5%. To qualify the property must be owner occupied. The first time home purchaser may claim the full maximum amount or a proportion of the maximum refund amount. To qualify for the Land Transfer Tax Credit, an individual, their spouse or common law partner must not have not owned a home in the previous 5 years. The refund can be given instantly at the lawyers office but advise the lawyer prior to the closing date if you qualify for the rebate

Rebate Examples
Cost Of Home  Tax Payable  Tax Rebate
$100,000          $725              $725
$200,000          $1,725           $1,725
$300,000          $2,975           $2,000

The refund amount is reduced when one or more of the transferees are not a first time home buyer. The reduction will be proportionate to the interest in land acquired by the individuals who are not first time home purchasers. For example, a parent who is not a first time home buyer and child who is a first time home purchaser, purchase a home with equal 50/50 interests, the child may claim 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund, i.e., 50% of $2,000.

Click the link for more information on the Ontario Land Transfer Tax Credit.

First Time Home Buyers Toronto Land Transfer Tax Rebate (up to $3725)

First time home buyers of a newly constructed or re-sale residential property qualify for the Toronto Land Transfer Tax Rebate. The maximum allowable rebate is $3,725.00. This allows first time home buyers in Toronto to purchase a home valued as high at $400,000 without having to pay a Toronto land transfer tax. Any additional amount above $400,000 will be taxed at a rate of 2%. The property must be owner occupied.

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.

More information on the Toronto Land Transfer Tax Rebate and the Toronto land transfer tax rate can be found on the City of Toronto website.

The First-time Home Buyers’ Tax Credit

The First-time Home Buyers’ Tax Credit was introduced as part of ‘Canada’s Economic Action Plan’ to assist Canadians in purchasing their first home. It is designed to help recover closing costs, such as legal expenses, inspections, and land transfer taxes, so you can save more for money for a down payment.

The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home, described in more detail below. If you are purchasing a home with a spouse, partner or friend, the combined claim cannot exceed $750.

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If you are confused about any information above, send me an email and I’d be glad to talk you through it!