Ontario Land Transfer Tax

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Ontario Land Transfer Tax

Ontario Land Transfer TaxOntario Land Transfer Tax is charged to the homebuyer and applies whenever a land or an interest in land in Ontario is purchased,

The applicant buyer pays the Ontario’s land transfer tax at the time of purchase, the term “land” includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances, and cabinetry).

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

In some cases, land transfer tax is based on the fair market value of the land, for example, where:

  • The transfer of a lease with a remaining term that can exceed 50 years
  • The transfer of land is from a corporation to one of its shareholders, or
  • The transfer of land is to a corporation if shares of the corporation are issued.

Current Ontario Land Transfer Tax rates as of January 1, 2017

Current Ontario Land Transfertax RateFirst-time homebuyers rebate

Up to December 31, 2016, first-time homebuyers qualify for up to 2,000 land transfer tax rebate.

Ontario Land Transfer Tax rates as of January 1, 2017

Ontario Land Transfer Tax Rate

From January 1st, 2017 onwards, the new Ontario Land Transfer Tax for first-time home-buyers will be exempted on the first 368,000 of a land purchase price and first-time home-buyers will also be eligible for up to a 4,000 tax rebate on the non-exempted amount.

Also from January 1st, 2017 the new Ontario Land Transfer Tax rate increases on properties which purchase price exceeds 2 Million, the increase is to 2.5% from a 2%.

An appraisal of the properties before the purchase is most likely going to be ordered.

Your opinion is welcomed at the bottom of the page.

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Dufferin County Homeownership

Dufferin County HomeownershipThe Dufferin County Homeownership Component program is designed to provide moderate income individuals and families with an interest-free down payment assistance loan to help them in purchasing their own home.

The Dufferin County Homeownership is an affordable housing program and might provide you with an interest-free down payment assistance loan of up to five percent (5%) of the cost of an eligible home, to a maximum of $20,000.00.

 To be eligible for down payment assistance you must be a renter household and meet the following criteria:

  • Combined gross household income at or below $88,000
  • Must not currently own a home or have a legal interest in a property
  • Must be buying a sole and principal residence within the County of Dufferin
  • Have assets of no more than $20,000.00
  • Must not owe any social housing arrears, including damages
  • Be a minimum 18 years of age
  • Be able to secure financing on the property

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Mortgage for single parents

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Mortgage for single parents

Child Support incomeIn Ontario, as of 2011 according to Stats Canada, there were more than 604,000 lone-parent families, and in a staggering 80% of them, the female parent was living with their children!.

Now, this days is very difficult enough for a married or common-law couple to qualify for a mortgage in order to become a home owner, that difficulty is significantly greater for the single parent.

The distress of the single parents enhances their vulnerability against debt and for many their incapacity to understand that they too should be able to afford home ownership, even if they are separated from their spouse or partner

Mortgage for single parents, however, is possible when the qualifications are available, to help with the income, when applying for a mortgage, a single parent should include the following sources of income on top of the regular salary or earnings as a self-employed

Some of our mortgage lenders offer very helpful mortgage products where other proven income rather than the traditional are accepted, ask for details

May I help you with your mortgage?

Mortgage insurers support single parents in their endeavor of home ownership by allowing that their proven child support or alimony is accepted as part of their qualifying income when they meet the following criterias that need to be collected by the mortgage agent in order to present to the mortgage lender:

  • Court ordered or an executed separation agreement (lender must obtain)
  • No more than 50% should be used for qualification purposes
  • 100% may be used provided income represents <30% of gross income and borrower has demonstrated receipt – through T1 General – for a minimum of 1 year.

It is common that many single parents do not know how much is the child support that they should receive for each child, to help with an estimate, here below you can find a table with some income amounts that could help them get an idea of what they should receive as child support in Ontario

Under the Federal Child Support Guidelines, the table amount is determined by:

  • The number of children;
  • The province or territory where the paying parent lives; and
  • The paying parent’s before-tax annual income.

Annual gross income# of Children Monthly child support
$80,0002$1,172.00
$50,0001$450
$55,0001$498.00
$60,0001$546.00
$65,0001$594.00
$70,0001$639.00
$75,0001$682.00
$80,0001$724.00
Annual gross income# of Children Monthly child support
$50,0002$743.00
$55,0002$817.00
$60,0002$892.00
$65,0002$966.00
$70,0002$1,037.00
$75,0002$1,105.00

Table Look-up Disclaimer

The Child Support Table Lookup has general information only. It is not a legal document. The tables were last updated December 31, 2011. To determine how much child support is owed from May 1, 2006, to December 31, 2011, use the 2006 tables. Note that provincial or territorial guidelines may apply in some cases.

Contact me if you need more information for your mortgage.

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Residential Construction Mortgages

Residential Construction Mortgage

Faster approvals and easy advances

For you who are looking to start a new project and looking for financing options, why not getting faster approvals and easy advances, simply the best lending solution.

Residential Construction Mortgages details: 

  • For builders or borrowers wanting interim financing for a new construction project, for renovating an existing structure and for land acquisition
  • Loan commitments are made at the time of approval and may not exceed 85% of budgeted costs, up to 75% of the land value and may not exceed 65% of Pro-forma appraised completion value
  • Draw advances are easy with support from our Construction Specialist and can be made up to 5 times though the project
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Low cost home ownership

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Low cost ownershipLow-cost home ownership are financial assistance programs offered by the government to assist lower income families with the purchase of a residential property to live in it.

There are currently a number of programs with different alternatives and yet we experience an all time high home prices in Toronto. Programs like Home in Peel region affordable ownership and the Region of Waterloo affordable home ownership, and the idea of creation of other programs should be supported with more funding by all levels of government.

If you think that we are living on a time that demands more programs to assist home ownership, estate your opinion in the poll below.

As mortgage agent serving the greater Toronto area and beyond, I receive information of many mortgage rates updates from the numerous lenders, whether they are banks, financial institutions, credit unions and private lenders with the purpose promoting them among my clients, some products offer temporary advantages to the borrower or specific timing on a deal, the mortgage products from lenders are not the same.

By the way, offering a variety of mortgage products is a starting advantage that help my clients decide in dealing with me rather than their bank, they prefer options that deliver more savings, it makes them feel comfortable

The Bank of Canada recently lowered the key overnight rate, that lead to a reduction on mortgage rates from many of our lenders, besides the rates we also see unique government incentives for first-time home buyers, and even the opportunities of tax sheltering and tax returns with the rrsp’s home buyers plan that helps buyers save for their down payment, all this helps a great deal to practice a good mortgage assessment that will certainly lead to the approval of a mortgage loan and a low-cost ownership, what do you think?

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If you are interested in finding out if you qualify for a mortgage this year so that you can purchase your home, do not hesitate in contacting me now

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Stop renting this year

Rent or home ownership

It may be the difficulty of moving out of a comfort zone the reason why many people are still renting, and by comfort zone I don’t mean a geographic zone, but a mind set zone.

There is without question a great deal of people that are committed to paying the same amount of money as a rent for their home or apartment that has been sheltering them for a long while, exposed to rent increases out of their control, leaving in smaller unit, owning zero of that property and yet not making an attempt to own their own home.

The amount of rent coming out of their paycheck is about the same as what a mortgage payment would be since we still have this all time low interest rates that by the way may increase during this year

There are a great deal of benefits when purchasing a home such as wealth building, through home equity, cheaper borrowing, government incentives for first time home buyers, living in comfort and financial discipline

The obligation is however, to help those with the interest in learning the way to home ownership, so that the time of renting becomes a chapter in a book of history and not a concern for the future.

As we live in a complex society, obstacles to home ownership are develop by us, when we choose our lives style and the way we conduct ourselves, the way we manage our wealth by the way we prioritize our needs.

However, there will always be factors that can discourage or strengthen our will to own or not to own our home. but obstacles can be removed from the way clearing the path to home ownership that in most cases is a good life changing event. Factors like low credit score, no down payment savings or others can be removed from the way.

These obstacles can be clear with a set of good advices from your mortgage agent, the help of mortgage lenders and the resolute will of the home buyer starting by calling to arrange a simple and short mortgage assessment. If the will to home ownership is in your mind, delaying to call now may result in giving way to another year of renting whether you are an employed or self employed.

Call today and request your free mortgage assessment

Owner occupied rental

Owner Occupied Rental

The owner occupied rental mortgage offers the flexibility needed to own a property while renting a fraction of it to someone else, so you can use the rental income to help repay your mortgage.

The owner occupied rental mortgage is normally used by small but growing families when their own income alone may not be sufficient to qualify for the property you need.

This type of mortgage gives you the advantage to qualify for a bigger property than what you can afford with your income

Not all properties and not all rental agreements may qualify for this type of mortgage, ask me before buying the property.

The owner occupied rental is available for purchases or refinance.

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Non owner occupied rental mortgage

Non Owner Occupied Rental

The non owner occupied rental mortgage loans help you qualify by adding the monthly rental income to your current income. As a result you are able to purchase or refinance a rented property and let the property pay for itself with the rent

Scenario: You currently have a steady job or business, a decent credit score, some savings but no time to start another business or job, and you would like to earn residual income from a real estate property.

The non-owner occupied rental mortgage is designed for those who would like to become real estate investors.

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New To Canada Mortgage

 

New To CanadaNew to Canada Mortgage is for people who have immigrated or relocated to Canada within 60 months, offers credit record or history flexibility, lower down payment required than a conventional mortgage.

The New to Canada  mortgage is for the new immigrants that have obtained landed status and have not already owned a house It presents the opportunity to start owning a home instead of renting.

The following are some borrower qualifications for the New to Canada Mortgage:

  • High ratio secured mortgage loans with only 5% Down payment from own resources; For LTV’s less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy. (3 years landed immigrant)
  • Or Conventional unsecured mortgage loan with 35% Down payment or more from own resources.
  • Amortization up to 30 years in Conventional & 25 years insured mortgages
  • No 3rd party/Guarantors

  • Number of units, Max 2

  • Must provide valid work permit or verification of landed immigrant status

  • International Credit Report or 2 alternative sources of credit

  • Bank reference letter or 6 months bank statements
  • 3 months minimum full-time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
  • All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
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Family Plan Mortgage

Family Plan MortgageFamily plan mortgage is a mortgage loan that allows an immediate family member to assist financially another immediate family member in the purchase of a new home

Family plan mortgage is one of the insured, owner-occupied mortgage loans, good credit rating is necessary and both members of the family must be included in the property title.

Family plan mortgage is great for the following examples:

  • A parent who wishes to help an adult entrepreneurial child buy a home

  • A parent helping to buy a home for an adult child at a post-secondary educational facility

  • An adult helping to buy a home for elderly parents who are living on a fixed income

Insured Mortgage Facts:

  • 2+ members of the family purchasing a home

  • All applicants must be on title

  • For immediate family members

Eligible properties:

  • Number of units: Max 2 – at least one should be owner occupied

  • Good conditions property in marketable area in municipality with resale value stability

  • New constructions or existing properties

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Zero down payment mortgage

Zero down paymentZero down payment mortgage is a Mortgage loan offered by only some lenders that offer a 5% cash back, that can be used towards the down payment.

It helps realize the dream of home ownership even before the down payment has been saved.

If you are currently renting and prefer to own your own home, but you haven’t been able to save enough for your down payment, this is your chance call now

To qualify for a Zero down payment mortgage you to have good credit (read below), a steady source of income that can show your capacity to repay the loan, (we’ll do the math together) and savings of about a 1.5% of the value of the property that you are seeking to purchase

These mortgage loans are not available for borrowers that:

  • Are prior bankrupts, consumer proposals, collections or repossession
  • Have high credit cards or other consumer loan debt with no assets and no evidence that they can save
  • Have no assets to show for the length of their working career

 Visit also low credit score mortgage 

* Subject to availability

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