Special Financing Options When Buying A Home

July 12, 2021: Real Estate has experienced steady growth overall throughout the years, with many people finding greater wealth because of their investment. The following are some current savings programs offered for buyers, as well as some costs associated with a purchase of real estate in Canada/ Ontario.

DISCOUNTS/ TAX REBATES:

1   · HST Rebate - applicable on new construction housing only - the government may provide an HST rebate to qualified individuals* Click for details → https://bit.ly/3hxE0eO

2   · RRSP Home Buyer’s Plan - available for 1st-time home buyers - the government may provide an RRSP rebate* Click for details → https://bit.ly/3kbm7UR

3   · Land Transfer Tax Rebate - available for 1st-time home buyers - the government may provide an LTT rebate up to $4,000 tax rebate on the Ontario land transfer tax and $4,475 tax rebate on the Toronto municipal land transfer tax* Click for details → https://bit.ly/3yTbcUa

4   · First-Time Home Buyer Incentive - available for 1st-time home buyers across Canada - The program offers 5 or 10% of the home’s purchase price to put toward a down payment. 
Recent changes (for Toronto/Vancouver/Victoria) include:
· First-time buyers will be able to purchase a home up to 4.5 times their household income (vs 4x)
· They can participate if their household income is $150,000 or less (vs. $120,000)
· With a minimum down payment, the maximum purchase price that will qualify under the program rises to about $722,000 (vs. $505,000 currently nationwide)
Click for details → https://bit.ly/3r7uXob

5   · 25% off Legal Fees - available for FrontLine Workers - Kormans will provide the discount for Real Estate Transactions, Wills and Powers of Attorney* Click for details → https://www.kormans.ca/

6   · Home Energy Rebate - receive up to $5,000 if you make your home more energy efficient - the Federal government will provide these rebates* Click for details → https://bit.ly/3xBG639

7   · NetZeroHome - get a 25% rebate on your mortgage insurance premium - CHMC and Genworth Canada would provide the rebate* Click for details → http://NetZeroHome.com

8   · Home Accessibility Tax Credit - receive up to $10,000 if you renovate your property to assist someone with a disability or who is 65 or older.* Click for details → https://bit.ly/3i4SS3j

9   · Ontario Senior Homeowners’ Property Tax Grant - available for Older Adults, receive up to $500 yearly* Click for details → https://bit.ly/2VCnTnV

10  · Ontario Provincial Land Tax Deferral Program - available for Low-Income Seniors and Low-Income Persons with Disabilities - receive up to $5,000 in property taxes yearly* Click for details → https://bit.ly/3eciRVx 

11  · Moving expenses - for anyone moving closer to work/school within 40km - receive a discount on taxes by the government* Click for details → https://bit.ly/3ATHrUR

12  · Mortgage Consolidation - A popular trend at the moment is people refinancing their mortgages trying to clean up from the mess COVID has caused for many.  My recommended Mortgage Brokers still have lenders that are picking up the legal fees on these transactions. Contact me to receive my list of recommended Mortgage Brokers.

PROPERTY PURCHASE COSTS:

1   · Land Transfer Tax - Applicable in Ontario
The Buyer is charged the following: (charges add up for each step)*
Step 1 - 0.5% of the value of the property up to and including $55,000
Step 2 - 1% of the value which exceeds $55,000 up to and including $250,000
Step 3 - 1.5% of the value which exceeds $250,000 up to and including $400,000
Step 4 - 2% of the value between $400,000 and $2,000,000
Step 5 - 2.5% for amounts exceeding $2,000,000, where the land contains one or two single-family residences
So the LTT on a $425,000 property would be: $4,972 [Step 1= 275, Step 2=1,949, Step 3=2.249, Step 4=499] Click for details → https://www.kormans.ca/

2   · Toronto Land Transfer Tax - Applicable in Toronto
The Buyer is also charged the following: (charges add up for each step)*
Step 1 - 0.5% up to and including the first $55,000
Step 2 - 1% of the value which exceeds $55,000 up to and including $250,000
Step 3 - 1.5% of the value between $250,000 and $400,000
Step 4 - 2% of the value between $400,000 and $2,000,000
Step 5 - 2.5% of the value over $2,000,000
So the TLTT on a $425,000 property would be: $4,972 [Step 1= 275, Step 2=1,949, Step 3=2.249, Step 4=499] Click for details → https://www.kormans.ca/

3   · Non-Resident Speculation Tax - Applicable in the Greater Golden Horseshoe of Ontario to non-permanent residents/ citizens/ foreign corporations - a tax of 15% of purchase price*
Click for details → https://bit.ly/3yTjJqa

*restrictions vary. 
This list is deemed to be accurate at time of printing, however changes may occur afterwards unbeknownst to the author. This information is meant only for information purposes and is not guaranteed. Readers are encouraged to get up-to-date advice from a Mortgage Broker, Financial Advisor or Lawyer. 

Information compiled by Tina A McQuaid, Sales Representative, Sutton Group-Summit Realty Inc., Brokerage 2021July13