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.

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A Co-signer story

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A co-signer story Considering co-signers to help your mortgage may be a very smart thing to do in regards to money-saving, however, this advantage may come with some potential risks that may end up consuming some of those savings or even worse, potential legal conflicts.

A good family that I know wanted to buy a house to stop renting, they had been renting for a long while and they wanted to start owning, however, their income was insufficient to prove affordability to a lender that they would be able to repay the requested mortgage. They have saved for their down payment, their credit was ok, It was only the insufficient income.

They approached a good friend in whom they trusted enough to ask to help them being a co-signer so that they could qualify to purchase the home for their family. He would need to commit to their mortgage obligations and responsibilities, except that he wouldn’t be paying the monthly mortgage payments unless the couple couldn’t make them.

The family was able to qualify and purchase their home, they were able to make the payments and live a better life, build some wealth and save more money than when renting. The co-signer was offered a very small percentage of the value of the property for the diligence of being included in the property title.

Suddenly, the good friend that was the father to a teenager passed away, this brought some complications and extra legal work and expenses to the family a couple of years after as they were planning to refinance their mortgage, and they needed to remove the co-signer from the title.

This is an example why it is wise to accept the mortgage protection plan offered with your mortgage.

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No fee refinance promotion

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Street Capital No Fee RefinanceIf you are looking to refinance your current mortgage this limited time promotion might help you save even further.

To optimize your savings, lower your borrowing cost, better your cash flow and most of all meet the financial goals you have set for the short and medium future, consider this not so common promotion that we have just received. It may come in the nick of time for you.

In this limited time promotion, the lender street capital takes care of the legal fees on your behalf when you choose a 5 years term refinancing mortgage, whether you choose a fixed or a variable rate.

The minimum loan amount, for this limited time promotion, is $250,000 and borrowers can refinance their mortgage at the competitive street capital mortgage rate.

Important benefits that you as a borrower need to consider if you are planning to refinance your current mortgage are:

  • Single point of contact at FCT (Who will service the legal process of your mortgage)
  • Expedited funding process
  • In-home signing appointment/notary office in BC

What this promotion includes is:

  • All discharges
  • All cancellations
  • Funding
  • One signing appointment
  • Payout of all secured and unsecured debts (Refinance)
  • Payout of current mortgage (Straight Insured Refinance)
  • Any applicable taxes
  • A title insurance policy in favour of the lender

FCT stands for “First Canadian Title”

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Financial character

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Character

Financial character

Financial character is the mental and moral group of qualities presented by an individual in regards to his/her behaviors when it comes to his/her financial agreements.

Your credit score may not be good enough to qualify for a mortgage!
Your high income may not be sufficient to qualify for a mortgage!

Have you suffer disappointments or being declined for a mortgage even when your credit score is higher than others?

Do yo have a high income, yet have being declined for a mortgage or are currently paying high interest rates?

Learning how financial character affects your ability to qualify or to obtain better mortgage rates means a great deal of money in your pockets.

Understanding that money is not everything should very important to you as it is to the financial institutions or lenders that you will seek a loan from.

Your credit score may not be good enough to qualify for a mortgage!

It is in the way your earn money and the way you use it that you create behaviors and may tell of what you give priority when you spend, how respectful and committed you can be to a promise made when requesting a loan, and what capacity you have to continue repaying a long term debt that you are asking for.

To some people making money is very easy at a time, but spending more than what they make maybe easier, to them going into credit card’s debt may be not important because they can pay the money back (at first) but without a conscience, of repaying with respect to the institution that lent them the money and the integrity to recognize that the lending and repaying transactions are a mutual commitment, the behavior patterns of those people most likely will lead to a higher un-affordable debt.

Some people pay on time and what is agreed their mortgages, but fail to do the same with their telephone or utility bills or car loan or others, this deteriorates the character of the borrower.

Paying responsibly, with consistency, on time and agreed amount (that is not yours, yo borrowed it) with consistency to all who you have celebrated a financial agreement with, will help you build a pattern of good character, one that respects financial institutions and that is always observed by the lenders when requesting a mortgage loan.

Your high income may not be sufficient to qualify for a mortgage!

Some people may have a high income, yet they may have previous commitments to car and student loans, credit cards, other monthly commitments and may not see in time that their debt ratios are getting out of hand as what they make or more is already committed.

The above example is common and may be as a result of poor management of their income.

Some people may be earning enough money to afford mortgage payments but may not be able to document all their income, this represents a higher risk for the lender. Different lenders have different appetite for risk and therefore some people may be able to support their income in different ways and qualify for a mortgage loan, but the borrower needs to understand that a higher risk means a higher interest rate in their mortgage loan.

There are also people earning good money but not capable to save for the down payment on their own, and have no assets, so where does the money go?

May I help you with your mortgage?

All this examples and a thousand more that you may be familiar with, are considered as factors that build a financial character in a person by his/her own, and are always considered by the lenders when underwriting before they decide to approve or decline a mortgage loan.

Keeping a good financial character helps you project a good image of your self when it comes to requesting a mortgage loan, it shows your respect to your agreements, to, other people, to institutions and mainly to your own commitments

With a good financial character, you could picture yourself as the client all lenders want to have in their portfolio, it gives everyone a peace of mind, you would be a promise of a long lasting relationship, it is good business for everyone, and it means to you a great deal of savings.

Get the strategy you need to achieve your financial goal of investing on real estate, take the next step, get your mortgage assessment for free

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Say goodbye to your mortgage faster

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Say Good Bye To Your MortgageGetting your mortgage approved so that you can purchase or refinance your real estate property. That is one of the services that I offer.

But this service does not come alone and getting your mortgage approved is among the first steps towards the goal of building your wealth, my continue support and care to service your mortgage as your mortgage agent, will continue and my professional and sound advice will always be there for you.

May I help you with your mortgage?

 

In order to support you in the best way possible I also have the support from banks and lenders. Advice, strategies and support that I pass on to you when applicable, to help you save on interest rates.

The following are some strategies prepared by TD Bank that can help you save even more.

How to save in a mortgage

 

Home sale prices in Ontario

Home sale prices in Ontario

Is it really worth it to buy a house? That is a question that some renters that I have come across with have or had, like John and Sue (not real names) from Toronto, who were renting because they never thought that they could buy a house considering their financial situation. After our first meeting at that corner coffee shop (it was very crowded by the way), they felt comfortable enough to take the next step

The next step was, to decide whether to start their mortgage assessment or not, they decided to go ahead as they had nothing to lose and now they own a condo on a 15th floor that is more comfortable than the apartment they were renting and in a safer area; their mortgage payments are currently lower than what they were paying as rent.

The following chart from CHMC, illustrates in a simple way the average home sale prices in Ontario, includes a forecast for the years 2013 & 2014.

What you as a borrower can take from this is that, those who in the past years, were able to invest in a real estate and capable of keeping their investment, have now benefited by the growth of their equity, even through the slow economy that we lived in the past few years.

In the graph, as we observe a steady increase in home sale prices, we should also consider the savings resulting from low mortgage rates (not expressed in the chart below).

The growth of wealth in equity offered by the residential real estate industry, should be considered as a clear message, and an invitation to those who are currently renting, to invest securely and buy their homes now, rather than later.

Situations that prevent renters from buying a home like, low credit, no initial down payment, low income and others can be overcomed with a clear and solid strategy and here is where I can help you.

Home Sale Prices in Ontario

Source CHMC

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