BUYER TIPS & INFORMATION WHEN PURCHASING YOUR HOME
This page will include valueable information for Buyers when purchasing your Home. Whether you are a first time Buyer or if your are perhaps Downsizing, Relocating or Growing - please read on:
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- What is the Ontario Land Transfer Tax?
Upon the purchase of a Residential Property in Ontario the Ontario Land Transfer Tax (LTT) will be calculated on the Purchase Price and is payable on closing based on the following:
- 0.5% on the first $55,000 of the purchase price plus;
- 1.0% on the amount exceeding $55,000 up to and including $250,000 plus;
- 1.5% on the amount exceeding $250,000 up to and including $400,000 plus;
- 2.0% on the amount over $400,000
- As a First Time Home Buyer am I eligible for a LTT rebate?
First Time Home Buyers can receive a credit of up to $2,000 from the Ontario Government. The purchaser must be 18 yrs of age or older; the application must be made within 18 months of purchase; the purchaser must occupy the home as a principal residence within 9 months of closing; the purchaser cannot have previously owned a home anywhere in the world; a spouse of the purchaser cannot have owned a home while they were the spouse of the purchaser; if the spouse sold the property before you were married, than you are a first time buyer and you would qualify for a 50% rebate; if you buy the home in your name only, you are eligible for a 100% rebate.
- When is the Land Transfer Tax Paid?
The Purchaser’s solicitor will pay the LTT on behalf of the purchaser on closing date and the purchaser will be required to provide these funds.
- Besides the Purchase Price of My Home are there any additional costs?
Yes there are. These include Lawyers fees, Land Transfer Tax, Mover’s Costs, Costs of Setting up Utilities (ie Hydro, Gas), Mortgage Application Fee may be charged by some lenders, CMHC costs if you have less than 20% down, Home insurance will be required by your lender, Title Insurance, Home Inspection, Adjustments.
Title Insurance will cost a few hundred dollars and remains in effect for the property as long as the mortgage remains on title. Title insurance gives the Buyer peace of mind and assurance that title is 100% yours, with no liens or claims against the property
These may include ie if your home has an oil or propane tank the seller will fill the tank prior to closing and your lawyer will determine the dollar amount owed to the seller; the seller may have paid their property taxes for months past closing and your lawyer will determine the dollar amount owed to the seller
- Do I need a Home Inspection?
A Home Inspection is usually included in Your Agreement of Purchase and Sale and is often a condition for the purchase of the home. A qualified Home Inspector will walk you through the home and explain the condition of the home as well as any suggestions regarding maintenance & upkeep of your home. Prices will vary depending in the services offered, between $300 and $600.
- Are there any other Rebates for First Time Home Buyers?
Yes, there is the Ontario Home Buyers’ Tax Credit and it must be claimed with your Personal Tax Refund, within the year of purchase. For the year 2012, the rebate works out to be $750.
- How can a Realtor/ Real Estate Sales Representative help me in the process of Buying my Home?
Your Local Real Estate Agent will be working on Your behalf to find you a home that suits your needs and requirements. Your local Realtor will be knowledgeable of homes in the area including pricing and comparables, will be able to explain the home buying process and all paperwork involved, will be able to negotiate on your behalf and will be able to provide references for home inspectors, mortgage brokers, movers, handymen and so on.
- When should I get pre-approval
It is important to get preapproved before you start your house hunt. You will save yourself a lot of grief by not looking at homes that you cannot afford. You will be better positioned to make a strong offer when the right house does come along. Speak with Your Mortgage Broker or Financial Advisor.
CMHC Green Home
Energy-Efficient Housing Made More Affordable with Mortgage Loan Insurance
More than 17 percent of the energy consumed in Canada is used to run our homes. Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund, and a premium refund for a longer amortization period (if applicable) may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations.
Mortgage Loan Insurance
For most people, the hardest part of buying a home — especially a first home — is saving the necessary down payment. To help, CMHC offers lenders Mortgage Loan Insurance, which allows you to buy a house with a minimum down payment of 5%. Offered through most financial institutions, this simple solution has enabled millions of Canadians to realize the dream of homeownership.