Ajax Pickering Real Estate Blog

Land Transfer Tax

This is a provincial tax levied when title to land is transferred. It is payable by the purchaser upon the registration of every transfer of land. (i.e. on closing day). The calculation of this tax on a single family is as follows:

Amounts up to and including $ 55,000.00 - 0.5%
Amounts exceeding $55,000.00 up to and including $250,000.00 - 1.0%
Amounts exceeding $250,000.00 up to and including $400,000.00 - 1.5%
Amounts exceeding $400,000.00 and up - 2.0%

Legal Fees

A lawyer will charge a fee for his/her service plus pass on to the client all costs that are incurred in the process. A partial list of these items is as follows:
- Title Insurance (if required)
- Registering the transfer & Mortgage
- Obtaining tax certificate
- Obtaining utility arrears certificates
- Obtaining estoppel certificate (Condo)
- Obtaining sheriff’s certificate
- Managing closing day
- Courier, photocopying etc.

Home Insurance

Lenders will require that the home is protected against perils, such as fire, before the mortgage loan is advanced.

Moving Costs

Depending on whether you move yourself or hire a company, the cost may vary. Right At Home Realty has arranged with AMJ Campbell “The Ultimate Service Moving Program”:
- Hand picked Crews
- Free Wardrobe Service
- 15% off hourly rates
- 25% off packing and unpacking rates
- Hassle free & Worry free move with full nation wide support
- Canada largest coast to coast moving company
- Free written, no obligation estimates

Home Inspection

A professional home inspector may be employed by either the seller, prior to marketing the home for sale, or the buyer, prior to firming up the offer. An inspection is done to ensure that no major deficiencies exist at the time of selling or buying.

Adjustments

The funds required to complete the transaction will include adjustments for prepaid expenses. For example, if a vendor had paid the property taxes for the entire year, the new purchaser would owe the vendor that prepayment. Other such adjustments are as follows:
- Property taxes
- Utility bills
- Condominium fees
- Interest adjustments
- Any other cost which the vendor has paid for which the purchaser will benefit

Another way to explain, is to simply say that the Purchaser pays for all expenses of the home starting from (and including) the day of closing.

Federal and Provincial Taxes

Typically resale homes are exempt from GST. Taxes may be payable on the many services listed on this page. A new home is not exempt from GST and may be paid by the builder or buyer, depending on what is negotiated at the time of purchase.

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Contact the Jeffrey Team for more information - 416-388-1960

Does the idea of buying a home seems overwhelming to you? Do you always ask yourself questions like; How much can I afford? How can I find the best loan? Should I buy a new or a resale home? Should I use a real estate agent or look at homes on my own? and many others questions?

We agree, buying real estate is one of the major decisions that you will make in life and is one of the largest financial transactions in your lifetime. But, don’t worry, although there is much to consider when buying a home, if you do your research and approach the home buying process with confidence, you will most likely buy a house that you will be proud to call home.

Below are the three most important things to remember no matter where you are on the road to home ownership. If you follow them closely, you will be happy with the end result!

1. Understand the home buying process.

When buying a home, there is nothing that is complex that can’t be easily explained to anyone. If you don’t apply for a thirty year mortgage once a week, don’t take the first one that comes along. You’ll need to do your research, learn some new terms, apply some new concepts, and take the time to understand the entire process. If something happens at any point that you don’t understand, simply demand a full and complete explanation from someone you trust like your real estate agent, CPA or your lawyer.

2. Become the important person in the process.

In the world of real estate sales, YOU are the most important person in the home buying process. It’s easy to think that everyone else carries more weight than you but that’s not the reality. The seller owns the house and has all the money and the real estate agent tries to sell the house for the seller. However, you, the buyer, are the one person in the transaction that makes it all happen. This entire process could come to a stop if you decide to not buy. So why not take command of this process?

3. Surround yourself with a team of professionals that you trust and make them work for you.

Good real estate agents, mortgage specialists and property lawyers are some people that you can count on to help you. They all  save you time and money. They know your community, they know what is important when buying and selling a home, and they know all the intricacies of the process, from finding a home, to negotiating a price, to closing a deal and to ensureing the paperwork is done right.

As you can see, if you approach the home buying with intelligence and confidence, you are more likely to buy a house you’re happy with and know that you made the right decision. When you start to walk down this road, take charge from the first step and be in the pilot seat to ensure you satisfaction. Remember, YOU are the most important person in this process!

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Contact the Jeffrey Team for more information - 416-388-1960

With so many new mortgage features being introduced in the Canadian marketplace, the choices for the consumer are immense. Perhaps the most anxiety-ridden part of house hunting is figuring out how much you can afford. Your real estate agent or a specialized Mortgage Consultant offers the expert, impartial mortgage advice you need, and can educate you on the range of mortgage types which are now available.

The formula used to be simple. For decades, the thinking was that your monthly mortgage payment, including taxes and insurance, should not exceed 28% of your gross pay, and that all your loans, mortgage included, should not exceed 36%. Lenders used that formula to qualify people for loans, and people relied on lenders to tell them what they could afford.

Today, lenders rarely use this cookie-cutter method. Some focus more on how much of a person’s monthly income goes toward paying off debt. Some do not use ratios at all. But whatever method lenders use, borrowers should play it safe and stick to the old formula, even if it means scaling back expectations.

You may need to start with a condominium or a small house, look at your purchase as the first investment, and then move up. Do not assume that because a lender is willing to loan you a certain amount of money, you should take all of it. Instead, assess your financial situation, make a budget and decide how much you can afford to sink into a mortgage each month.

Start by figuring out how much you now pay for housing. Do you have to pay the same amount on a home loan? Can you afford to pay more? If so, how much?

Below is some of the Mortgage options currently available in the Canadian Market:

Fixed Rate vs. Variable Rate Mortgages
With a fixed rate mortgage, the interest rate stays the same throughout the term of the loan, providing a measure of stability that some prefer. A variable rate mortgage can allow the borrower to take advantage of low rates as it typically has an interest rate that is calculated on an ongoing basis at the Bank of Canada prime lending rate minus a set percentage.

An Open or Closed Mortgage?
Open mortgages allow the borrower to pre-pay, renew or refinance at any time before maturity without penalties. A “closed” mortgage, on the other hand, usually allows for a set percentage of the principal to be prepaid without penalty. A “closed” mortgage may also be renegotiated or refinanced in most cases with the payment of a penalty which varies from lender to lender.

High-Ratio Mortgages
While a conventional mortgage is a loan for up to 80% of the purchase price of a property, a high-ratio mortgage allows you to borrow up to 95–100% of the purchase price. This type of mortgage must be insured.

The above-mentioned options are just a starting point – there are numerous other mortgage features to be explored, a specialized Mortgage Consultant will work with you to determine which mortgage best meets your individual needs and objectives.

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Contact the Jeffrey Team for more information - 416-388-1960

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For any bank home loan 2nd mortgage is quite a popular option. However, the mortgage calculators reveal that the deals that claim to be the best remortgages are never trustworthy, leading to piling up debts. The mortgage brokers reveal that most of the mortgage leads generated are the ones going for 2nd mortgage and hence return back due to reliable service earlier.

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