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By admin, July 13, 2009 9:48 pm

There is Land Transfer Tax for Ontario and if you live in the city of Toronto there is an additional tax there as well. There is a great LTT calculator here http://www.torontorealestateboard.com/LTT_splash/ltt_calculator.htm.

In Ontario:

The tax is calculated as follows:

* 0.5% of the value of consideration for the transfer up to and including $55,000,

* 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and

* 1.5% of the value of the consideration which exceeds $250,000, and

* 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

First-time homebuyers may be entitled to a refund of Ontario’s land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration.

The Toronto Land Tranfer Tax is calculated as follows:

Price of the Home

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

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

If you are a first-time purchaser of a newly constructed or re-sale residential property. The rebate for first-time home purchasers is up to a maximum of $3,725.00.

Your lawyer applies for the credits for you when registering your home.

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By admin, July 10, 2009 3:58 pm

Your credit score is used by most companies to see if you are a good credit risk or not. A credit score of over 680 is considered excellent.

What Can You Do to Improve Your Score?

1. Order a copy of your credit report from www.equifax.com or www.transunion.com to review it and make sure there are no errors.
2. Pay your bills on time.
3. If your credit history is questionable, open a few new accounts and use them responsibly.
4. Don’t open accounts and not use them. Having 6 or 7 of the same type of credit does not work in your favour.
5. Keep your balances low relative to your amount of credit available.
6. Pay off credit card debts!

What Does This Mean to Home Buyer’s?

The better your credit score the higher you buying power (income dependent as well). You will also qualify for the best mortgage products at the best rates.

To see what your credit score is and how much of a home you can afford, make sure to talk to your Real Estate Agent and Mortgage Broker before shopping for your Toronto Home.

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By admin, July 7, 2009 9:02 pm

Buying Your Home:
The Process

Purchase “Agreement of Purchase and Sale” forms

For example: Name, Property address, Legal description, Deposit,
Your choice of Clauses, Chattels, Exclusions, etc.

1. CASH OFFER
   PURCHASER AGREES TO pay the balance of the purchase price in cash or by certified cheque
   to the Vendor on closing, subject to the usual adjustments.

2. CONDITIONAL UPON ARRANGING SATISFACTORY FINANCING
   THIS OFFER IS CONDITIONAL upon the Purchaser arranging satisfactory financing on or before
   ______, otherwise this Offer becomes null and void and the deposit money shall be returned
   to the Purchaser in full without interest. The Purchaser reserves the right to waive this
   condition at his sole option within the specified time period. The said proceeds for
   financing shall be paid to the Vendor on closing as part of the purchase price.

3. CONDITIONAL UPON QUALIFIED INSPECTION
   THIS OFFER IS CONDITIONAL for a period of _____ days from the date of acceptance by the
   Vendor upon the Purchaser having the subject property inspected by a qualified home
   inspector and finding said inspection satisfactory to him, failing which, this Offer shall
   become null and void and the Purchaser’s deposit shall be returned in full without
   interest. The Purchaser reserves the right to waive this condition at his sole option
   within the specified time period.

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By admin, July 2, 2009 9:03 pm

I have a great condominium listing right now and we have had lots of traffic from Buyer’s Agents.  What surprises me the most is the calls I keep getting from Buyers who are just calling around to a bunch of listing agents to view their listings.  There is very little awareness in the marketplace as to the advantages of having a Buyer’s Agent working on your behalf.

First of all you don’t need to search the Toronto MLS for listings every day. An agent can automatically send you the listings that meet your search criteria and let you know about exclusive listings that are not available to the public.

The agent schedules the appointments for you and can work within your schedule to make sure you get to see all the homes you are interested in.  It is so much easier to be “chauffeured” around rather than randomly go see homes on your own.

An agent will also educate you on the process of buying a home.  This way when you find the perfect home for you, you will be confortable and ready to put in an offer.

The agent will prepare the Offer of Purchase and Sale for you and will include clauses to protect your interest, for example the conditions of financing or a home inspection.  They will negotiate on your behalf to get you the best possible price for the home.  A selling agent wants to get the highest possible price for their client’s home.  This is not the price you want or should be paying, a well prepared agent will pull comparables in the area to help negotiate the best possible price for you as a buyer.

In a multiple offer situation, an agent is essential to helping you form the right pricing and terms strategy to get you the home of your dreams.

And after the negotiation is over, their job is not done until closing where they work with the lawyer, the lender, and the seller’s agent to make sure that everything will be ready for closing.

So instead of going in by yourself to meet with the listing agent, hire someone you can trust to represent you and protect your interests in achieving your Real Estate goals.

When buying your home in Toronto, make sure to hire a Buyer’s Agent!

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By admin, May 27, 2009 9:54 pm

You are starting your search for Toronto Real Estate and you aren’t really sure which neighbourhood to choose.  There are so many great areas in Toronto, how do you decide.  Here are some factors to keep in mind:

• What activities do you regularly engage in.  Do you go to the movies?  Do you attend church?  How far are you willing to travel for these activities. 

• Look into the schools and child care options available in the area.  How do the schools score?  Are you interested in private, public, French or Catholic education?  Do you need before and after care?  Even if you don’t have children now you may in the future and a good school will be important to you then.

• Is the area safe?

• How close do you need to be to work?  Some people don’t mind a long commute.  Some prefer the train over driving.  What is important to you and does the area have transportation available or easy access to highways?  Are you prepared to drive an hour to work and be able to afford more of a house?

• Walk or drive around the area to see if you get a homey feeling before you start looking at homes.  Being focused on a particular neighbourhood will help your Real Estate Agent pinpoint the right homes for you.

There are many websites that offer neighbourhood information.  One of my favourties is ZooCasa

Also I have a pageon this blog that links to the Toronto Life website and their information about neighbourhoods.

Enjoy and if you have any questions about Toronto Homes for Sale and various neighbourhoods, give me a call.

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By admin, May 19, 2009 8:55 am

Well, this is a very good question that I often get asked by my clients.  The ideal down payment is what you personally can afford to make but there are some things to keep in mind.

The down payment is the amount of money you are paying up front for your home.  You can make a down payment for any amount but there a mortgage insurance premiums you  will have to pay depending on the lender and the down payment amount. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

This chart which is available on the CMHC (Canadian Mortgage and Housing Corporation) Website shows the premiums charged:

An example of this is for a $100,000 mortgage with 5% down, the mortgage premium would be around $2,750.

It is very important to know what your mortgage payments will be before you look at homes, so you are comfortable and know all the details of how much home you can afford.

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By Lisa Collins, March 20, 2009 7:05 pm

Anyone who owns a home knows that there are many additional costs associated with owning a home. Many first-time homeowners base their decision to buy a home on their ability to make the monthly mortgage payments. In fact, there are many other costs that go into owning a home than just the mortgage payment.

First-time homeowners are often startled by the hidden costs of owning a home. The traditional housing expenses (principal payments, interest, taxes and insurance) are just the beginning. Maintenance, repairs, supplemental insurance, home improvements and decorating can cost you thousands of dollars a year—more than you expect.

Additionally, a home purchase triggers a series of additional spending on appliances, furnishings and remodelling activities that exceed typical spending levels of non-moving owners or renters and can persist for two years after moving.

Let’s take a look at the most overlooked items that tend to be a burden to all homeowners:

Move-in Costs

1. Home improvement costs
Your new home may require some repairs or remodelling. One of the great things about being a homeowner is the opportunity to put your personal stamp on a house. It’s easy to go overboard with home improvements, though. Relatively few projects add much lasting value to your home, let alone guarantee that you will recoup your costs.

Homeowners are more inclined to purchase luxury items that renters would not, such as granite counter tops, pricey fixtures, alarm systems and other gadgetry. The cost of these luxury amenities can easily add thousands of dollars to the cost of owning a home.

2. Furnishings costs
You will also want to budget money for additional furnishings. Since your new home is likely to be larger than your apartment, you will probably need more furniture. You might also want window treatments, lighting fixtures, carpet or area rugs and appliances, all of which can add up to tens of thousands of dollars.

Ongoing Costs

1. Monthly mortgage payment
Probably this is the easiest to understand. If you have selected a fixed rate mortgage, your lender will tell you exactly how much your monthly payment is going to be.

2. Property taxes
Property taxes can be demanding because even if you’ve paid off the mortgage, you still have to pay a monthly fee to the town and/or the municipality in which you reside. It can easily total $500 to $1,000 or more a month, particularly in large cities where property values have soared in recent years.

3. Utility bills
The monthly utility bills such as electricity, gas and others could amount to $400 or more, some current home renters may not be aware of this as most likely it is included with their monthly rent. If you are moving to a condominium, you should also add monthly condominium fees.

4. Maintenance costs
How much your home will cost you in maintenance and repairs depends on several factors: the age of the home, how well it’s been treated by previous owners, the harshness of your climate and how much money you want to get out of your home when you sell it.

You should budget between 1% to 2% of your home’s value for annual maintenance. If you bought a $200,000 home, for example, you should set aside at least $2,000 a year, or around $200 a month. Some years you’ll spend less, but others you could spend more. A new roof for your home, for example, can cost $4,000 or more.

Naturally, some homes cost more to maintain than others. Older homes usually need more maintenance than newer homes, even if it has been recently renovated. Also, don’t assume that because a home is new, it won’t need any maintenance for a while. All homes need to be attended to on a regular basis to keep them from falling into a state of disrepair.

The Bottom Line
Being a homeowner brings with it a great sense of pride and gives you enormous stability and security knowing that you will always have a roof over your head, however, it can cost a lot more than you think. So to avoid any unpleasant surprises, make sure you are aware of these extra costs.

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By Lisa Collins, March 19, 2009 7:03 pm

- In another attempt to stimulate the sluggish economy, the Bank of Canada governor Mark Carney cut the interest rate to 0.5%, the lowest ever. The Bank has cut the key rate by four percentage points since December 2007.

In its announcement the Bank stated that this rate is to remain at its current level or lower until there are “clear signs” that the economy is recovering. This rate cut, the seventh in the last year, was widely expected by economists.

Carney also said it is possible that the Bank may provide additional stimulus, if necessary, by purchasing credit and other assets.

Commercial banks immediately began to follow suit. RBC Royal Bank quickly announced it is trimming its prime lending rate by 50 basis points to 2.5%, effective tomorrow, and the Bank of Montreal said it is lowering its variable mortgage rates, effective tomorrow. Other Canadian banks cut lending rates as well.

Rate cut impact may take time
While rate cuts are designed to have a simulative effect on the economy, most experts believe the cut will have a minimal impact. The central bank has cut its rate from 4.5% 15 months ago to 0.5%, to little effect.

Many economists predict that it could take anywhere from 12 to 18 months for interest rate cuts to take effect, which means today’s announcement won’t provide immediate relief.

“The effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010,” Carney said. “Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies.”

How will this affect mortgage prices?
Those with existing variable rate mortgages will benefit directly – these mortgages are linked to the prime rate. However, there can be some variation in when, or to what degree, lenders react to a Bank of Canada rate announcement. There are lenders who change immediately after a Bank of Canada rate move, while some lenders re-set their prime rate on the first of the month following and some even do so quarterly. In addition, after recent rate announcements by the Bank, some lenders matched the Bank’s drop only after a delay, and some did not match the full rate cut.

Currently, pricing for new variable-rate mortgages is typically above the prime rate. Those looking for a new variable-rate mortgage may wish to get pre-approved, to protect themselves if variable-rate pricing in relation to prime continues increase in the next few months.

Pricing for fixed-rate mortgages is not directly affected by today’s announcement. However, some fixed rates have been trending downward in recent week.

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By Lisa Collins,

I was reading  a blog post by Seth Godin the other day where he ask “where have all the agents gone”.  His view of Realtors as a middleman is interesting. “Middlemen add value when they bring taste or judgment or trust to bear on a transaction that isn’t transparent.”

I could not agree with him more.  The value a Real Estate Agent brings to a Real Estate Transaction is the trust and judgment they bring to the transaction.  When selling your home you trust the agent Realtor with the largest single asset you will ever own in your lifetime.  And their opinion on value and how best to market your home is where they bring value to the transaction.  They are a neutral resource who is not emotionally attached to your home and this is key to achieving the goal of selling your home in the least amount of time, with the least amount of inconvenience for the highest possible price.

For a buyer, a Realtor can educate them on the home buying process which is so important for first time home buyers.  They also can help you establish the price you should pay for the home (rather than what the asking price is).

What makes one agent more valueable to you than another?  Well, as with everything in life some people do only the minimum required of them.  I have never been one of those people.  I go above and beyond and see myself as your Real Estate Consultant for life.

Seth Godin goes on to comment on how you some agents for example in the travel industry are paid directly by the traveller not the airline.  They are the front man not a middle man.  This idea scales well to Real Estate since the seller pays a fee (commission) to the listing agent and the buyers agent. I will not work with a seller who is unrealistic about the asking price for their home just for a commission cheque.  I would rather work with a seller who see the value in my services and expertise.  Once again we are back to trust.  Someone who truly sees the value in a Real Estate Agent taking care of all aspects of the transcation will be receptive to paying for those services.   Miami Realtors Enrique Garcia & Ines Hegedus-Garcia “We do not criticize those that don’t need our services and want to do it on their own – on the contrary, we give them credit for their willingness to take risk – but we give our undivided attention to those that trust us with their investments and value our services.”

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By Lisa Collins, March 4, 2009 5:46 pm

At it’s peak, first time home buyers accounted for almost 70% of all buyers purchasing homes.  Now it is hovering around 40%.  I have noticed recently, that this number is once again on the rise.  In the last week, I have met 3 first time home buyers who are starting their search for their first home.

Although the market has not finished it’s down swing, interest rates are lower than ever and the government introduced new measures in it’s budget to make home ownership more attainable for first time home buyers.  Now is a great time to buy for those who are looking to purchase their first home.

To start looking today, give me call.  When we meet I will educate you on purchasing a home and we will complete a profile individual to you and your needs.