Who Pays Ontario Land Transfer Tax and How Much

The skinny: who, what, when, where and how of the Ontario land transfer tax

The skinny: who, what, when, where and how of the Ontario land transfer tax

What is the Ontario Land Transfer tax? Simply put, the Ontario Land Transfer Tax is a provincial tax payable by the buyer of a home upon taking possession of the property. So, if you purchase a property or land you are responsible for paying Land Transfer Tax to the province at the time the transaction closes. If the property you are purchasing is located in Toronto you will also be subject to the Municipal Land Transfer Tax. This is an additional tax that you are required to pay as well.

The buyer’s lawyer will pay the Land Transfer Tax on behalf of the purchaser on the closing date. The buyer will be required to provide their solicitor closing funds (certified) that will cover the closing expenses.

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Rent to Own – Is it for You?

Rent to own arrangements are ideal for people who can afford homes but do not have enough cash on hand for a 20% down payment

Rent to own arrangements are ideal for people who can afford homes but do not have enough cash on hand for a 20% down payment

Rent to Own. Is it for you? What is the theory behind this concept? Basically,a homeowner rents to a tenant and the tenant has an option to buy the home for a predetermined price at the end of the lease. Sounds pretty simple right? The homeowner has a deal to sell the house and the tenant can apply their rent towards the purchase price while saving up for the down payment. Seems like a pretty fair deal.

In my opinion, the agreement benefits the homeowner and the homeowner is taking very little risk. The homeowner can demand a higher price. In most rent-to-own scenarios, the tenant pays more rent than normal with a portion going towards a down payment. The extra money acts as a forced savings plan for the tenant towards their down payment. Tenants are also typically required to put down a percentage of the final sale price as a deposit, which will be held by the homeowner and applied to the price of the home at the end of the lease option.

This can be attractive for those who can afford to buy a home but might not have the down payment and will therefore not qualify for a traditional mortgage. The downside is that if a tenant decides to break the agreement or decides the property is not suitable, they may loose their deposit and depending on how the contract is written, may loose all the money that was put aside for the down payment.

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Top 3 Real Estate Scams – How To Protect Yourself

Be alert these these common scams to avoid losing your time and money

Be alert these these common scams to avoid losing your time and money

Top 3 Real Estate scams. Yes they do exist. Why do they exist? Very simple. The Real Estate market is one that carries with it a lot of opportunities for criminal organizations to cash in on. The current housing market in the province of Ontario is unbelievable. This is a seller’s market folks! When you list your property on the professional market, BEWARE. Your home will be sold in only a record number of days and will sell for at least $30,000 to $40,000 above asking price. This is out current state of affairs. It’s great for home sellers, but even greater for the criminal fraudsters out there. With that being said, I have come up with the 3 most common real estate scams that are prevalent in our society. Please take a read and make yourself aware of the types of frauds that exist.

1. TITLE FRAUD

One of the least common frauds for property owners is title fraud. This type of fraud starts with identity theft. The criminal will use false documents to pose as the property owner, registers forged documents transferring a property to his or her name, and then gets a new mortgage against the property. After securing a mortgage or line of credit, the criminal takes the cash and leaves the owner on the hook for future payments.

While an identity thief may get a forced discharge of an existing mortgage, it is generally held that fraudsters are more likely to go after homes that are free and clear of mortgages: these have fewer complications and they tend to be held by older people who may be less aware about how to guard against identity theft.
Title insurance is the best protection against this type of fraud. As well as protecting against title fraud, it also guards a new owner from against existing liens against a property’s title (such as unpaid debts from utilities, mortgages and unpaid property taxes), encroachment issues (a structure on a property needs to be removed because it is on your neighbour’s property) and errors in surveys and public records.

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Top 10 Mistakes First Time Home Buyers Make

Buying your first home can be both exciting and daunting - here are the top mistakes to avoid to make it less stressful.

Buying your first home can be both exciting and daunting – here are the top mistakes to avoid to make it less stressful.

The top 10 mistakes first time homebuyers make. This is the topic that I would like to focus in on today. Well, I was once a first time home buyer and made a ton of mistakes that I wish I hadn’t. Well not to worry. Here is a list of 10 mistakes first time home buyers make due to inexperience and not listening to professional advice.

1. Not knowing how much you can afford.
Many first time home buyers will invest a lot of time researching a particular geographic area that they want to live in. They also will allocate a great deal of their time comparing the layouts of their favourite homes etc. Little to no time is spent of how much they can actually afford. New buyers should go and speak to a lender and get approved for a mortgage right away.

2. Assuming that “power of sales” are a great deal
Just because the bank has taken possession of a house, it does not mean that you are or will be getting a good deal. The previous owner was not able to make payments and as a result the bank has taken over. The values of these homes drops and as a result that bank will ask more than what its worth.

3. Letting your true feelings come out.
Never let your agent or the sellers agent know how much you love the house. The seller’s agent may turn around and use it a leverage against you.

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Bidding wars in Real Estate

The real estate market acts out the law of supply and demand in high gear, generating bidding wars that drive up property prices way over asking

The real estate market acts out the law of supply and demand in high gear, generating bidding wars that drive up property prices way over asking

Bidding wars in Real Estate. Before I get into the topic of bidding wars, I would like to take the time to explain what a bidding war is. Some home buyers are new to this concept and thus requires some a brief explainantion.

Bidding war’s or commonly referred to as “multiple offers” is a situation where two or more buyers are interested in a house that they make increasingly higher offers of the price they are willing to pay to try to become the new owner of the house. The bidding usually occurs at a fast pace, requiring potential buyers to make less thought-out decisions than they normally might.

Now that we know the definition of a bidding war, how do we connect it to the city of Mississauga? Very simple! Mississauga is seeing a ton of bidding wars. Why is that? Simply put, there is very little inventory in the city. There is a high demand from buyers to purchase townhomes, condo, detached homes etc. However, there is very little to choose from. In addition, Mississauga has a lot of great attributes, it’s a very safe city and is much cheaper to live in than Toronto.

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Will Ontario’s Housing Bubble Pop?

What will happen when the boom ends?

What will happen when the boom ends?

Many investors and consumers are asking will Ontario’s housing bubble pop?  Well, I stumbled across an interesting article that I found in the Toronto Star. It talks about a recent report released by Scotiabank with respect to the state of housing in Canada. Definitely an interesting read for the curious at heart.

A Scotiabank Economics report predicts that Boom times are over for Canada’s housing sector and the impact of “a more subdued trajectory” will be felt everywhere from construction and home renovation sites to retail stores.

Housing has generated $1.7 trillion in net new wealth for Canadians since 2000. A slowdown in house price gains — or even a possible slump in prices — “will reinforce a more cautious trend in consumer spending,” warns the Industry Trends report released Wednesday.

“Canada’s long housing cycle is turning. Residential investment stalled last year as affordability constraints tempered home sales, and builders scaled back the number of new developments,” notes the report by Scotiabank . The sector will remain on a more subdued trajectory over the next several years, imposing a modest drag on output growth.

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Real Estate Agent, Broker and Salesperson – What’s the Difference?

Understand the difference between these terms and the role these people play in your real estate transaction

Understand the difference between these terms and the role these people play in your real estate transaction

Real Estate Agent, Broker and Salesperson. The terminology can be confusing. While it may not seem important to know the difference between these terms, there are some common traits and useful distinctions to be aware of when you look to buy or sell a home.

Let’s start with the most commonly misused term, “agent.” Most people use this term to describe the individual real estate professional assisting them, it’s not technically correct. Legally, “agent” is actually the term given to the brokerage (the company) that represents you as the buyer or seller. An agency relationship is formalized when you sign a contract, either in the form of a buyer representation agreement or a typical listing agreement. These agreements are between buyer/seller and the brokerage, not the individual representative.

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Top 5 Neighbourhoods In Mississauga

Top best places to live in Mississauga if you are planning on buying a property here.

Top best places to live in Mississauga if you are planning on buying a property here.

What are your top 5 neighbourhoods in Mississauga? What do you think about when you hear the word Mississauga? Well I’ll tell you what I think. We have an incredible Mayor. We have a great transit system. We have our own highway. We are home to many transnational corporations. And last but not least, Pearson International airport is in Mississauga. So take that!!!

Within the city of Mississauga we have a ton of communities that are vastly diverse and vibrant. I’ve taken the time to compile what I think are the top 5 neighbourhoods in Mississauga.

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