Right at Home Realty Inc. REALTOR
895 Don Mills Rd., Suite 202 Toronto, Ontario M3C 1W3
Agnes Buss Real estate agent sales representative
free first time home buyers information about buying in the Greater Toronto Area, Toronto real estate resale homes purchase, listing agents, toronto buyer agents, estate homes and sales, toronto new houses, condo, condominiums, commerical properties, investment properties in the GTA.
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Agnes Buss, B.Com
Sales Representative
free first time home buyers information, friendly agent
When you have decided to buy or sell a home, the services of a qualified real estate professional are very important. The ideal sales agent will have a good working knowledge of local real estate conditions, be prepared to deliver a high standard of service to customers, and have the support of a large real estate company. Most importantly, a good agent will save you time and money. Here are the advantages of working with a sales agent:
When planning to purchase a home, you are faced with many decisions. What comes first-buying the next home or selling your present home? What is your price range? What will be the location, size, and style of your next home? Before getting the answers to these questions there is one major decision to be made: which realtor will you choose to help you get through the maze of forms and give you the direction needed to successfully complete your real estate transactions?
Buying a home is too important to leave up to a committee. Some buyers like to leave their name with three or four salespeople. Although it may seem to be to the buyer’s advantage to have a number of people to work with, it is usually a very ineffective approach. The basic assumption is that a committee of agents can produce more results then working exclusively with one agent. Like most committee assignments-everybody’s responsibility is nobody’s responsibility.
The Home Buyers' Plan (HBP) is a program under which you can, generally, withdraw up to $20,000 from your Retirement Savings Plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.
If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $20,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.
HELPFUL TIPS
Government Programs to assist buyers & sellers, Tips to creating a beneficial relationship with your Realtor & more...
Government Programs to Assist Home Buyers:
RRSP Home Buyer's Plan (HBP)
5% Down Payment Program
GST New Housing Rebate Program
CMHC Purchase Plus Improvements
Land Transfer Tax Rebate Program (LTT)
Despite popular belief there are many Government Initiatives and programs that help today's home buyers in purchasing their home. These programs, through their existence, also aid sellers in a way that makes it possible and financially feasible for buyers to purchase that home. Within this page you will also find information on how to create a beneficial relationship with your Realtor and why it is important for two-way communication to exist. Happy Reading!
RRSP Home Buyer's Plan (HBP)
With as little as five per cent of the purchase price, all home buyers now have access to Mortgage Insurance enabling then to enter the housing market, as long as you can manage the costs of home ownership.
You may be eligible to claim a rebate for a part of the GST you pay on the purchase price or cost of building your home if:
First-time home buyers who purchase a newly constructed or resale home will receive a rebate of the Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum LTT rebate is $2,000.
First-time home buyers purchasing within the City of Toronto will also receive a full refund of the Municipal Land Transfer Tax, if eligible, up to $3,725. Others will receive a partial refund, if for example, a couple is purchasing a home with one party being a first time buyer and the other having purchased property before.
For More Information visit:
Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.
5% Down Payment Program
LAND TRANSFER TAX
GST New Housing Rebate Program
CMHC Purchase Plus Improvements
Up to $20,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples -- including common-law -- will be able to withdraw up to $40,000.
You have to meet the first-time buyer's condition. You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of residence in the past 5 years. To determine past 5 years, the 4 years preceding the year you make your withdrawal plus the period in the year you make your withdrawal ending 31 days before your withdrawal is the rule adopted.
Home buyers withdrawing funds do not have to pay income tax on the amount withdrawn, as long as the funds are repaid into an RRSP in the future. The 15-year repayment period will begin in the second calendar year following the calendar year in which the withdrawal is made. In addition, a qualifying home must generally be acquired before October 1 of the calendar year following the year of withdrawal. For example, those making withdrawals under the plan in 2008 will have until October 1, 2009 to acquire a qualifying home and their first annual repayment will be due by the end of 2010 or the first two months of 2011.
A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made. Consequently, to get the normal tax break for a contribution and to use those funds under the plan, the money must be in your RRSP for at least 90 days before a withdrawal is made.
Existing homeowners can use the HBP to purchase a more accessible home or a home for a disabled dependent relative where the individual withdrawing the funds:
Double-Dipping?
You can participate in the HBP more than once if:
- Your HBP balance for your previous participation is zero on January 1 of the year you want your new participation in the HBP to occur; and
- You meet the first-time buyer's condition and all other HBP conditions that apply to your situation.
- Qualifies for the disability tax credit (DTC) and is buying a home that is more accessible for the individual or is better suited for the care of the individual;
- Is related to a disabled individual who qualifies for the DTC and is buying a home for the benefit of the disabled individual that is more accessible for, or better suited for, the care of the disabled individual, or;
- Is related to a disabled individual who qualifies for the DTC and is withdrawing an amount for the disabled individual to buy a home that is more accessible for, or better suited for, the care of the disabled individual.
Mortgage insurance for 95 per cent mortgages is now available to both first time and repeat home buyers. Buyers using the Program may consume up to 32 per cent of their gross family income for payments of principle, interest, property taxes and heating, and total debt load cannot exceed 40 per cent of family income.
Insurance premiums on loans above 90 per cent of the lending value of the house will be 3.75 per cent of the mortgage loan. This premium can be added to the mortgage. Price restrictions include a $250,000 ceiling on homes purchased in the Greater Toronto Area.
The maximum amortization period is 25 years. Borrowers are required to demonstrate, at the time of application, their ability to cover closing costs equal to at least 1.5% of the purchase price. Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.
- You buy a new or substantially renovated home (including the land or if you lease the land) from a builder;
- You buy a new mobile home (including a modular home) or a floating home from a builder or vendor;
- You buy a share of capital stock of a co-operative housing corporation;
- You construct or substantially renovate your own home, or carry out a major addition (or hire another person to do so); or
- Your home is destroyed in a fire and is subsequently rebuilt.
Resale homes are exempt from the 5% GST.
New homes are subject to the 5% GST (as of January 1st, 2008). The rebate reduces the GST and the federal part of the HST paid from 5% to approximately 3.5% for homes valued at $350,000 or less.
The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000.
New homes priced $450,000 before GST or higher would not receive a rebate.
NOTE: In the Greater Toronto Area, most builders include the GST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net GST cost.
See calculations below.
A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:
.5% on amounts up to and including $55,000;
+1.0% on the amount exceeding $55,000 up to and including $250,000;
+1.5% on amounts above $250,000 up to and including $400,000 for residential OR +1.5% on the amount in excess of $250,000 for business properties;
+2.0% of the amount in excess of $400,000. [residential only]
These four portions added up together total the Land Transfer Tax (LTT) payable.
A simple formula is as follows:
Purchase Price of $0 to $55,000 x 0.005
Purchase Price of ($55,001 to $250,000 x 0.01) minus 275
Purchase Price of $250,001 to $400,000 (residential) x 0.015
$250,001 plus (business) (.015 x purchase price) minus 1525
$400,001 plus (residential only) (.02 x purchase price) minus 3525
** If the purchase price falls within this range, then apply the appropriate formula to the purchase price. For example on a $200,000 property, the LTT calculation would be [(.01 x $200,000) minus 275 = $1725].
The insured loan will be based on the lower of:
The purchase price plus the actual cost of improvements, or, the "as improved" market value. Prior to approval, CMHC will determine the market value of the property after renovations/improvements. The lending value will not exceed the market value of the property after renovations/improvements.
Applicants must have the following:
- A minimum of 5% down payment of total cost (purchase price plus renovations/improvements)
- Cost estimates for renovations/improvements
- Qualifications to obtain a CMHC-insured loan through an approved lender.
Purchase Price of $100,000
Renovations/improvements costs: $25,000
Total cost: $125,000
* Where the loan-to-value ratio is greater than 90%, the maximum house price including the cost of improvements is $250,000 in Toronto.
For Example...
An agent takes care of the many tasks involved in selling a house (from placing your listing to putting up the for sale sign). This ensures that you enjoy a smooth and professional transaction.
When buying a home...
When selling a home...
Agents are experienced negotiators who will manage your offers and counter-offers.
An agent is familiar with the neighbourhood and can give you information on local real estate values, taxes, utility costs, services and amenities.
An agent is familiar with the entire home purchasing process and can advise you of your legal and financial options as well as recommend home inspection and contracting services.
An agent can pinpoint homes that fit your needs and dismiss those that do not, saving you time.
An agent will establish a marketing strategy for your home ensuring that your property is exposed to many potential buyers.
An agent knows real estate values in your neighbourhood and will help set a realistic and competitive price on your home.
An agent is an expert in the home selling process and as such will advise you of your rights, options and obligations.
An agent is an experienced negotiator and will work for you to get the best price possible.
How to obtain the BEST service & get the MOST from your REALTOR
You need the total commitment of one Realtor whom you feel comfortable with and who will get to know and understand you and your particular situation and needs. Buying or selling is a journey that must be carefully plotted and mapped from the start to completion. Tell the Realtor that you will work with them exclusively as long as you see the effort and work needed to get the job done. In fact, if you are a Buyer you should sign a Buyer Agency agreement with this agent to show your commitment. The agent should put in as escape clause for you the buyer (part of written service guarantee) if they do not perform or work actively for you. In this way you will have an dedicated Realtor who will make it her personal responsibility to handle all details of buying/selling to get you to a successful completion.
A good agent will listen to your needs and search through properties that are available both through their own office/company and the MLS , then sort out the inappropriate ones. They will likely show you a number of homes and get your feedback and then continue the process until you have found the right home. Be very upfront and direct with your feedback, point out your likes and dislikes of the properties. Your Realtor should have a copy of each of the listings you will be viewing with a space on each of the pages for your written notes. You may not remember the likes and dislikes you have of each homes unless you make your notes immediately after viewing each home. Also remember it is in you best interest to view a max. of 4 to 5 homes on any one home tour. It is easy to become confused when viewing too many homes at one time.
A Realtor is paid on a straight commission basis. They do not receive a salary or have an expense account. They are paid only after they have sold something and it successfully closes. This is why working with more than one Realtor is not a good idea. None of the Realtors will know if it will be to their financial benefit to spend any of their time or effort trying to find a property, when you could possibly buy through another Realtor. Believe it or not, you will be best served by dealing with one committed Realtor, as opposed to shopping the market with a variety of agents and Brokerages. By giving your commitment to one realtor, the realtor will work with enthusiasm and the diligent efforts required to successfully complete your transaction.
Lending Value $125,000
Maximum Mortgage (95%) $118,750
Mimimum 5% down payment $6,250
Provincial Land Transfer Tax (Ontario)
On October 22, 2007, Toronto City Council approved a new land transfer tax which takes effect on February 1, 2008.
Municipal Land Transfer Tax (Toronto Only)
Land Transfer Tax First Time Buyers Rebates
