Land Transfer Tax Rebates (Provincial and Toronto)

Programs

First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725. A FULL rebate of the Toronto land transfer tax is also available for ALL buyers who entered into Agreements of Purchase and Sale prior to December 31, 2007.

Details

Provincial LTT

• Provincial LTT is payable anywhere in Ontario (including Toronto)

• Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).

• For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.

• First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13, 2007.

• The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator

is available at www.NoHomeBuyingTax.com): o 0.5% of the amount of the purchase price up to and including $55,000, plus o 1% of the amount of the purchase price between $55,000 and $250,000, plus o 1.5% of the amount of the purchase price between $250,000 and $400,000, plus o 2% of the amount of the purchase price above $400,000

Toronto LTT

• Toronto LTT is payable only for properties in the City of Toronto.

• Maximum Toronto LTT first-time buyer rebate is $3,725 (equivalent to the Toronto LTT payable on a $400,000 property).

• ANY purchaser who entered into an Agreement of Purchase and Sale prior to December 31, 2007 is eligible for a FULL rebate of the Toronto LTT.

• Toronto LTT rebates are in addition to any provincial LTT rebate that the buyer qualifies for.

• The Toronto LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com): o 0.5% of the amount of the purchase price up to and including $55,000, plus o 1% of the amount of the purchase price between $55,000 and $400,000, plus o 2% of the amount of the purchase price above $400,000

First-Time Buyer Eligibility

To be eligible as a first-time buyer for the provincial LTT rebate and/or Toronto LTT rebate,

• The purchaser must be at least 18 years of age.

• 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.

• The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.

• 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. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.

More Information

Provincial LTT:

Ontario Ministry of Finance:

1-800-263-7965

Toronto LTT:

City of Toronto: 416-338-0338

TOP 10 LOW COST, HIGH RETURN OUTDOOR RENOS

Enhancing curb appeal isn't as cumbersome - or costly - as it may sound. It's all about timely exterior prep to boost a property's value

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When you've invested in a home, the exterior plays a huge factor in how quickly it sells. The experts will tell you: it's all about the impact of curb appeal.

"It means when you pull up to the house, there's only one chance to make a first impression," says Jim Cleghorn, Pillar to Post certified home inspector.

"So you try to make sure what the potential buyer first sees has a positive impact."

Here, Cleghorn and Marshall McCaroll, president of Toronto's Dale Construction Ltd., give their advice on simple, low-cost work almost any everyday investor could do. 

1) Wash the home's front, sides and windows 

Washing a home seems like a daunting task but according to McCaroll, it's actually easy. "For most siding, you can rent a pressure washer and do a thorough clean," he says.

Consider safety first though because depending on how tall the building sides are and how experienced you are, it's dangerous to climb up a ladder while operating a pressure washer.

When a potential homebuyer looks at it, if it's dirty, they think, it's all rundown," adds McCaroll. Washing dirty windows is also an easy fix and just like the eavestroughs, re-do the window frame paint if it's flaking off.

2) Fix broken concrete walkways

Walkways and steps often come up as a concern during home inspections says Cleghorn.

"When you walk up to a house, people see it right away if they are chipped or cracked," he adds. McCaroll assumes most people would not be able to remove the broken concrete then pour a new mix and make it look presentable.

Instead, he suggests interlocking stone for the less experienced handyperson to achieve a nice walkway look.

3) Pay attention to your front door 

The front door is so obvious yet easily forgettable. "Peeling paint or a dirty door is a really common oversight but it stares you right in the face when a prospective buyer walks up to the house," says McCaroll. The main door is typically sound but McCaroll has seen screen doors that damage a home's initial look.

"Anybody with just a little bit of skill could replace a screen door," he adds. Cleghorn stresses paying attention to the caulking around both door and window frames.

"It's not something you see right away as a potential buyer but if I have to do an inspection, I will say it needs to be re-done," he says. "You immediately think that cost isn't huge but if it's neglected, water damage may occur and someone will call you out on it." 

4) Watch for exterior lighting 

Like the front door, lighting is easy to overlook especially if people are viewing the home mostly during the day.

Upgrading an older light fixture to something more modern or classic provides an instant facelift.

But before you replace it, remember to shut off all circuitry first so as not to electrocute yourself or accidentally start a fire.

5) Fix loose railings

If the property has a porch or deck out front, Cleghorn reminds owners to tighten or fix any loose railings. This contributes to the home's overall appearance.

6) "Paint" your driveway 

To spruce up a tired and worn asphalt driveway, apply a top sealer coating known as coal-tar solution or dry waste sealer that can be found at Canadian Tire, Rona or any home renovation store.

"It's a 20-litre pail, black and it just goes on like painting your driveway," says McCaroll, meaning you don't have to do any major work, such as pulling up the existing asphalt. "You would sweep off the driveway and most of the sealers require you to dampen it down with the garden hose," he adds.

"So make sure all the dirt is off otherwise it would be like painting a dirty wall. It's just not going to stick as well. The instructions are normally easy to follow and anybody just with marginal skill can do it."

7) Clean out the eavestroughs 

Eavestroughs often go ignored because of their height but it affects the overall appearance of a home.  "When they're all old and dilapidated, it could make the house look rundown from the front," says McCaroll.

Typically, older eavestroughs will have paint flaking off and so they need to be re-painted properly but just ensure you strip off the old coat first.

You won't likely have to replace it all though. If it has come loose, you'll want to reattach it accordingly to the roof.

Also, if the troughs are dirty or there are leaves and vines growing in them, you must clean it up.

8) Repair roof shingles 

The roof is another difficult task for the everyday investor to handle but it's still possible to take care of it.

"If you walk up and you're looking from the front street of the house, and the roof shingles are curled and it looks old because of that, it should be addressed," says McCaroll.

"I know a lot of people don't look at buying a house when the roof looks beat up because they know it's a big expense to repair. It's pretty easy to spend $6,000 or $7,000 just to do a bungalow roof."

A few shabby shingles can be recovered on your own but replacing the entire roof is a huge project. "Most people are pretty nervous getting on a roof whereas a contractor would have the safety equipment to do it," says McCaroll.

9) Tidy loose wires 

Over time, telephone and TV cable wires can become loose around the house, often along brick. New ones may have been introduced and the companies setting it up don't prioritize the appearance. So don't let wires hang or droop about.

Most potential homebuyers are accepting of wires if they're tied up and look neat. All it requires is stapling or nailing them into place.

10) Maintain trees and shrubs, clean up your yard 

Landscaping is tremendously important to overall curb appeal so ensure trees and shrubs are properly maintained.

"You don't want trees hanging over and touching a roof," says Cleghorn. "Sometimes too, if it's older greenery, the odd times you get ice storms, you don't want big heavy branches banging up against the side of the house. It will damage roofing material, and pull down gutters and downspouts."

Trees should be pruned regularly as Cleghorn has seen bad weather or heavy wind take down trees, which could possibly smash into the home. As for the yard, there shouldn't be any debris, garbage or casted off material in the front yard (or backyard).

"Sometimes you go to houses and people pile all sorts of stuff outside," says Cleghorn. "It just creates an image you don't want if you're trying to go for a nice clean sale and keep the value up for your property.

If people think they're going to have to rent a dumpster or go to all kinds of trouble to clean up, it's a huge turn-off." Generally, these suggestions will uphold the home value. Anything not properly kept becomes a negotiating point that brings down the price.

"You don't want to be negotiating $10,000 or $20,000 worth because the buyer says 'I have to do all of this work,' and that's what could happen if it's not clean," says Cleghorn.

"If you're in a competitive market, or you have a buyer choosing between your house and another, it might be a strike against you if the house's appearance isn't great. There's nothing better than a well-maintained home."

Self-Employed Mortgage Financing Requirements

By Sandra Grywul on Apr 10, 2011 in Canada, First Time Home Buyers, Mortgage

Many self-employed applicants put off home ownership based on their financials, or lack thereof.

However, Mortgage Insurers and Lenders within Canada have made homeownership easier than ever with specific programs for today’s business owner.

Here are the first things to consider prior to searching for financing:

• You need 2 years history in the same type of work
• If you have been Self-Employed for more than 2 years, but less than 3 years, you can obtain a mortgage approval with alternate documentation proving your income, such as  a Self Declaration of your Income
• If you have been Self-Employed for more than 3 years, you must prove your income to the Lenders

For borrowers Self-Employed greater than 3 years, have the following documents ready prior to applying:

1. Last 2 years T1 Generals
2. Last 2 years Notice of Assessments
3. Audited Financial Statements signed off by an Accountant
4. Business License or Registration

Based on your application, your Lender may waive some of the documents listed above, or request additional forms of confirmation.  In some cases, the Lender will make exceptions on alternate documents, if the information provided satisfies the request.

For borrowers Self-Employed less than 3 years, but in the same type of work for more than 2 years, you can use a combination of the following documents to apply:

1. Self-Declared Letter
2. Business Registration
3. GST License
4. Articles of Incorporation, or Partnership Agreement
5. Business License
6. Notice of Assessment
7. Website Address
8. Recent Invoices to the Business
9. Cleared Business Cheque

Many banks today have reduced the amount of documentation needed, and in some cases are satisfied with a Business License, Notice of Assessment, and a Self-Declared Income Letter.

If you have not filed your taxes, you can still obtain financing.  A self-insured Lender, or Private Lender will require a down payment of at least 15-20% (or greater), a selection of documents listed above or alternate documentation, without the need for a Notice of Assessment or T1 General.  Keep in mind you will pay a higher rate than what is offered at a major bank.

Get started by contacting an industry professional.  A Mortgage Broker, or Mortgage Agent will help you find financing suited to your needs.

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Related Article: GDS, TDS, who cares?

Related Article: Are You Ready To Purchase?

Market Watch for Greater Toronto Area - March 2011

To view full report click Here

Re/Max vs Industry in 2011

First-time buyers in major Canadian markets move to get in ahead of higher interest rates, says RE/MAX

 Mississauga, ON (April 5, 2011) --  Driven by the threat of higher interest rates down the road, first-time 
buyers are contributing to strong upward momentum in residential housing markets across the country, 
according to a report released today by RE/MAX. 
The RE/MAX First-Time Buyers Report, highlighting trends and developments in nineteen major 
Canadian centres, found that low interest rates and balanced market conditions have provided 
significant impetus in 2011, particularly at lower price points.  Just over 30 per cent of markets are
reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an 
upswing in average price.  Leading the country in terms of percentage increases in the number of homes
sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver 
(up close to 12 per cent), and Winnipeg (up just over 11 per cent).  With an average price hike of close to 
20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, 
followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to 
seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).   
“Despite homeownership rates approaching 70 per cent, there is clearly room for growth as entry-level 
buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to 
lending criteria” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic  Canada.  
“Many purchasers intent on realizing homeownership are scaling back on expectations or are willing to 
sacrifice location, quality and/or size to make their dream a reality – not unlike generations before 
them.” 
Inventory levels, while tight in several larger centres, are more balanced overall, giving first-time buyers 
a good selection of housing product from which to choose.  Not surprisingly, condominium apartments 
and town homes have become the first step for many entry-level purchasers, especially in Greater 
Vancouver, Victoria, Kelowna, Edmonton, Calgary, London-St. Thomas, Hamilton-Burlington, Greater 
Toronto, the Island of Montreal, and Halifax-Dartmouth where average prices have risen unabated in 
recent years.  
“With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving 
into the traditionally busy spring market,” says Elton Ash, Regional Executive Vice President, RE/MAX of 
Western Canada.  “Consumer confidence is climbing in conjunction with economic performance, and 
concerns over a secondary recession fade with each passing day.  The mood is cautiously optimistic, as
first-time buyers enter the market.” 
Changes to recent financing criteria have not created the anticipated run up in activity in most markets.  
From a financial standpoint, most rookie home buyers remain quite prudent.  Those making the leap are 
not doing it lightly, buying within their means.  While this most recent round of policy tightening will 
likely have a negligible effect on demand, the message is getting across.   
Affordability remains a growing concern in most markets, and—aside from first-time purchasers—no 
one is more in tune with that than housing planners and developers.  In fact, the growing demand for 
reasonably-priced product is creating a shift in the country’s housing mix.  That trend is expected to gain 
traction in coming years, as builders look to create greater options for those seeking to realize 
homeownership.    In recent years, builders have helped ease the move to homeownership by 
concentrating on intensification—condominium buildings with smaller suites and small-lot subdivisions 
offering detached, compact homes at a fraction of the cost of a traditional single-family home.   On the 
flip side, the affordability factor is also breathing new life into tired older neighbourhoods, and that, in 
turn, is contributing to rising values.   
As prices escalate, first-time buyers are indeed spending more—some out of necessity, but others are 
simply in a position to do so.  Unlike in years past—a greater percentage of today’s first-time buyer pool 
is comprised of dual-income, college or university-educated couples with solid earnings.  They’re 
spending close to average price or slightly more to secure—in most cases—a better location or a home 
that will grow with them.   Yet, the fact remains that those on a tighter budget can get in for 
considerably less, with reasonable choices in every major market across the country.   While some may 
feel discouraged by eroding affordability levels, the underlying confidence in the concept of 
homeownership is rising. 
“While market conditions are one thing that influences first-time buyers, few things trump the 
fundamental belief in homeownership,” says Sylvain Dansereau, Executive Vice President, RE/MAX of 
Quebec.  “Today’s entry-level buyers are steadfast in their mindset.  They know they have to live 
somewhere, but they simply don’t want to pay someone else’s mortgage.  Savvy or practical, they 
remain a driving force.  The bottom line is that the demand for entry-level product will remain steady.  
The role of starter homes in the marketplace is becoming ever more vital.” 
RE/MAX is Canada’s leading real estate organization with over 18,000 sales associates situated 
throughout its more than 690 independently-owned and operated offices in Canada.  The RE/MAX 
network, now in its 38th year, is a global real estate system operating in 80 countries, with over 6,300 
independently-owned offices and over 92,000 member sales associates.  RE/MAX realtors lead the 
industry in professional designations, experience and production while providing real estate services in 
residential, commercial, referral, and asset management.  For more information, visit: www.remax.ca.