Category: Real Estate: 101 (4)

Land transfer rebate – up to $8775 rebate

First-time homebuyers in Ontario can qualify for a rebate equal to the full amount of their land transfer tax, up to a maximum of $4,000.

To qualify for the Ontario Land Transfer Tax Refund for First-Time Homebuyers, you must meet the following criteria:

  • You must be a Canadian citizen or permanent resident of Canada,
  • You must be 18 years of age or older,
  • You must live in the home within 9 months of purchasing it,
  • You cannot have owned a home before, and
  • If you have a spouse, they cannot have owned a home during the time they have been your spouse.

Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $368,333. For homes with purchase prices over $368,333, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

Please see this mortgage calculator which includes a land transfer tax calculator. Click here

 

Purchasing in Toronto?

First-time homebuyers in who live in the City of Toronto can qualify for a rebate equal to the full amount of their municipal land transfer tax, up to a maximum of $4,475. You can also qualify for the Ontario rebate in addition to the Toronto rebate.

Based on the Toronto land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $400,000. For homes with purchase prices over $400,000, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.

If you qualify, your real estate lawyer will claim the rebate electronically through Teraview when he/she registers your transfer/deed. For more information, visit the Municipal Land Transfer Tax Rebate website.


RRSP Contribution

What is the Home Buyers’ Plan?

With the federal government’s Home Buyers’ Plan, you can use up to $25,000 of your RRSP savings ($50,000 for a couple) to help finance your down payment on a home.

To qualify, the RRSP funds you’re using must be on deposit for at least 90 days. You must also provide a signed agreement to buy or build a qualifying home.

The best part is the withdrawal is not taxable as long as you repay it within a 15-year period. The payback amount is at least one-fifteenth a year of the amount you withdrew from your RRSP. So make sure you set up an automatic monthly, bi-weekly or even weekly contribution to your RRSP, to ensure you do not miss any repayments!

Advantages

Using your RRSP’s as a downpayment may be a great option as you have the ability to draw from some of your existing resources and it might possibly allow you to accumulate the 20% down payment needed to avoid having to pay default insurance premiums. Even if you already have enough money for your down payment, it may make sense to access your RRSP savings through the Home Buyers’ Plan.

For example, if you have already saved $25,000 for a down payment and assuming you still had enough “contribution room” in your RRSP for a contribution of that amount, you could move your savings into an RRSP at least 90 days before your closing date. Then, simply withdraw the money through the Home Buyers’ Plan. The advantage? Your $25,000 RRSP contribution will count as a tax deduction this year. Use any tax refund you receive to repay the RRSP or other expenses related to buying your home. But remember, you will have to pay that amount back to your RRSP over the next 15 years.

Considerations

It’s very important to your overall plan that both the pros and cons of this strategy be reviewed. There are a number of questions you should be asking yourself about this strategy:

  • Will you repay the requirement amount each year?
  • Is it the right time to cash out your RRSP (i.e., this depends on the investments and rate of return you are getting on your current investment)?
  • Is it worth forgoing the future tax sheltered growth potential of your RRSP in favour of reducing the mortgage amount (including default insurance premiums, total interest costs, etc.)

When it comes to buying and selling homes, no one-size-fits-all approach will do. We take a very unique approach to assisting you with one of life’s biggest investments! The Buschteam.ca real estate system ensures an EXTRAORDINARY experience!

Everything you need to know about selling real estate!

  1. Free Home Evaluation
  2. What Should You Look For in a Listing Agent?
  3. Getting Your Home Ready For Sale
  4. The Importance of Open Houses
  5. Closing Costs for Sellers

We know what it takes to get the job done, and we want you to be with us every step of the way, that is why we have created our buyers and sellers guides. Our sellers plan gives you an in depth look at selling your home, and answers any question imaginable, and explains many of the advantages of dealing with our customized, yet systematic approach to Real estate. We pride ourselves on our hard work and strategies for getting your home SOLD in the least amount of time for the most amount of money. Take a look at how we help

Homework! As the owners, you know more about the features and emotions of living in your home than anyone else! It’s our job to distill your words into compelling marketing messages to attract buyers. Please download this HomeSeller Homework and complete the questions before we get together.

In order for us to start please send us (or let us know it has been completed)

  1. Sellers Survey https://www.surveymonkey.com/r/KVFNNMY
  2. Sellers Homework attachment

Most Homeowners want us to answer 6 questions for them:

  1. Why Choose The Buschteam
  2. What do we do that separates us from the competition 
  3. Why Choose Royal LePage
  4. What is my Home Worth?
  5. What is Happening in the Market Right now
  6. How much is the commission / other costs

Here: We will answer #1,2,3

Why Choose US

First you have to ask yourself what makes a good agent. See here for a guide on choosing the right realtor.

While we do provide free staging as part of our package, you might find it useful to add your own feng Shui before we send the stagers through! 

Want to know what keeps us ticking and wanting the best for ourselves and those who we serve?HERE

Also please have a look at our marketing checklist, which ensures absolute client satisfaction

You get to be part of it (if you would like) Track all of our marketing collateral.

A weekly report: Designed to give Sellers piece of mind, the report keeps clients up-to-date with their homes’ marketing.

Your Home gets showcased to the MAX! See some of our marketing collateral

International Listing Hub

We track international visitors on all our websites, and use that data to push our listings in specific countries or communities. A home listed in Oakville or Burlington, might have a disproportionate amount of views in Toronto, because the allure of a larger home in a quieter neighbourhood. We use this data to target the most interested buyers, and sell our clients house for top dollar.

Are you buying a home too? You will have many financing questions, we have many established partnerships with the banks and mortgage brokers. Please see a guide to assist answer all your financing questions

It’s no secret what our clients are saying about us. See their testimonials here. If you already know about our services please feel free to share your experiences with us on FACEBOOK. Your support means the world to us.

Our marketing plan uses strategies to allow global reach. With the ability to have eyes around the world on your property it increases your chances of maximizing the value!

Nov
14

Leasing Guide

Please see the below for a helpful little guide we’ve assembled… Also documentation all landlords will generally require to ensure the most viable candidate, while on that topic it should be noted that alot of rentals in the GTA are getting many offers so it is crucial that

  1. a) all of these are prepared
  2. b) if you like the pace and you are up against 3-4 other offers, you consider putting $50-100 more aside for your rental budget/offer .

Please assemble these in order to optimize your offer

Also an interesting tool to use while leasing, it will help you build your credit score while you make lease payments. Check it out here: www.rentintocredit.com

  1. Completed Rental Application; (ATTACHED)  Which Includes:

Full Name of ALL PARTIES to the Lease(guarantors), Driver’s License Number, Previous Residences(2), Present and Prior Employment, Financial Obligation Disclosure, Personal References(2), and Year and Make + License Plate No.’s of any vehicles that will be parked at the premises you are trying to lease

  1. Proof Of Income

Each party/guarantor to the lease should provide at a minimum 1 Years Tax Return T4

  1. Current Pay Stub + Letter of Employment

A recent pay stub shows that you are currently working. This can sometimes be sufficient enough to not require a Letter of Employment. Although the employment letter is HIGHLY RECOMMENDED, as it typically proves you to be in good standing with your employer.

  1. Allocated Funds for FIRST & LAST Payments

Generally, First and Last rental amounts are due within 24 Hours of acceptance of an offer or the offer is void. Sometimes Landlords will ask for a Key/FOB Deposit. This is typical of Condominiums and is refundable upon Key/FOB return at the end of the lease. These deposits typically are $200-300

  1. Full Credit Report  + Score

The landlord wants to ensure you are in good standing with your previous creditors with diligent  effort. Credit reports show any delinquency in payments, credit limits/allowances,  and dates of credit relationships.http://www.consumer.equifax.ca/credit-score-ca/en_ca is an instantaneous source to get the report and costs about $24.00+Tax.(Navigable by www.equifax.ca)

Or you can try this free application : https://www.mogo.ca/loan/apply?v=4

  1. Copy of Drivers License

So… put yourself in the Landlord’s Position, He has 2 Offers to Lease, Yours and Someone Else’s, Everything is pretty close in terms of the applications. This time (or prior too) would be a good to differentiate from the other application!

Strategies to Differentiate! (Optional)

Offer More Upfront

  • If your credit/ employment currently is not strong, sometimes it is recommended that you offer more upfront money than First and Last

Show Capital Strength

  • If you have it, It is recommended that you show some “Capital Strength” which proves ability to pay. IE:  Bank and Account Statements  (“Black out” account numbers), and possibly a deed with information on a property you may own and/or may be selling, etc.  

Length of Term

  • If your intention is to stay in the new lease for more than a year than it may greatly help your efforts to put those intentions on paper. Ie. 2 Years vs. 1 Year, 1.5 Years vs. 1 Year.

Lastly, please see a letter you may want to assemble something similar for your current landlord. Also follow this link and add as an attachment to the letter (i’ts just a little more official)

http://www.sjto.gov.on.ca/documents/ltb/Other%20Forms/N11.pdf

Your name

Address

City, postal

 

Re: Vacating (property address)

 

Dear (landlord),

 

Thank you so much for leasing your property to me.  I am writing this letter to inform you that I will be vacating my current address of (property address) and moving into a new place that better suits my lifestyle and location needs.

 

I will have all of my things out of (property address) by (date they will be removed).  I have enjoyed my time here am looking forward to a new chapter of my life.

My last months rent is prepaid (name the month). I trust you will try to have the property re-leased and will do my best to have the place presentable to any potential new tenants that wish to view it. I will do my best to accommodate arrangements when new potential tenants request to view it!

As  per the landlord and tenant board requirement please see the attached N11 form filled out.

Could you please send me acknowledgement of receipt to this email please.

Best regards,

Sign and date

 

chart

The government has implemented these new restrictions to TRY and slow down our booming Toronto and Vancouver markets. We may see a moderation in home price appreciation year over year, that is not to say that the markets are going to decline, maybe just a slower appreciation in value (ie. Homes in the GTA increased 21% year over year.)

Essentially the changes only affect 25% of the market, being purchasers placing less than 20% down. When placing 20% or less it will cause your lender to require mortgage insurance. The new rules directly affect this group, and will limit their spending.

When it comes to the market, the most important thing to remember is that this whole thing is about demand, and we have to remember that housing inventory is still down 30% year over year.

The qualifying rate 4.64% is much different than the contract rate, typically about 2.44% (the actual amount) Meaning the amount people are paying for borrowed money does not change. Meaning affordability stays the same. Also important to note is the Bank of Canada rate has stayed at 0.5%, nothing has changed there to slow down/ speed up markets. This Drives the Prime lending rate; the bank adds 2.2% = 2.7%

Ask us for an easy to understand chart to see what you would qualify for based on your income. Your GDS and TDS ratios need to work of course. Have you been pre-qualified?

Don’t forget…if you don’t have 20% down-payment it’s not the end of the world. There are always creative ways to get it done. Whether it be a loan from family to get you up to 20%, or purchasing for a lesser price. Regardless, it doesn’t cost anything to get pre-qualified, so I highly recommend it so you know where you stand, and we can come up with a game plan.