Home Buying in Ontario

Some frequently asked questions

How much can I afford?

The shortest answer to that question is: it depends on a number of factors. The most important are your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play. To help you estimate the maximum mortgage you can afford housing affordability tool. Call Amit to find out your home affordability qualification over the phone.

For a information on affordability visit Canada Mortgage Housing Corporation -CMHC everythingyouneed.ca/en/


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As a buyer will I pay real estate commission?

NO, buyers do not pay any real estate commission in most cases. The seller usually pays real estate commission to the listing brokerage who, in turn, forwards the appropriate portion to the buyer’s brokerage. The buyer can be asked to pay the real estate commission when buyer broker is not paid any commission by the listing broker or the seller, however this type of situation rarely happens.

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As a newcomer what's the minimum down payment?

With "Welcome to Canada" program for permanent residents customers can now borrow up to *95% LTV (loan to value ratio). If you do not have a job or credit history, as a newcomer you can still purchase a home with 35% down payment.

*Conditions - Home buyer must have income to support the loan. Gross debt service ration/ Total debt service ratio (GDSR/TDSR) must be in line. Buyer must have found employment and have at least 5% down payment along with the estimatedclosing costs (credit history in Canada is not required). Genworth and CMHC are willing to take other sources of credit history.

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Before buying our home how can we find best schools?

There are many ways to do this. You can visit the following websites: Windsor-Essex Catholic District School Board www.wecdsb.on.ca  or  Greater Essex County District School Board www.gecdsb.on.ca  or local EQAO (Education Quality and Accountability Office), check out school report cards published by the Fraser Institute and Ontario Ministry of Education.

Finding the right combination of good schools and neighbourhoods that match your budget is not always an easy task. That's where the experience of a local REALTOR® comes handy. Call Amit to help you find your first home.

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Are there any government incentives for first time buyers in Ontario?

Below are some first time buyer incentives/ rebates.

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What is RRSP Home Buyer's Plan (HBP)?

Home Buyers' Plan is a program that allows first time home buyer to borrow up to $25,000 from their "Self-directed Registered Retirement Savings Plan (SDRSP)". You must be a Canadian resident who has not used this plan before. The loan is not taxable as long as the funds are repaid into the RRSP (registered retirement savings plan) over a 15 year period. The money cannot be withdrawn until 90 days after the RRSP contribution. After 90 days one can use the Home Buyers' plan to withdraw $25,000 without penalty. This way you will receive a tax rebate.

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Is there any GST home buying rebate?

Resale homes are exempted from GST in Ontario. The new housing GST rebate (36% of five percent GST paid) is available to individuals who build or buy a new house. The rebate on a home priced at $350,000 is $6,300 ($350,000 X 5%X 36%). For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately. No rebate for homes priced at $450,000 or higher before GST.

The GST new housing rebate is the mostly assigned to the builder by the home buyer. The builder sells with GST included and on that basis takes back the rebate.

The home should be either a single unit residential complex or a residential condominium unit. The home is intended for use as the primary place of residence. Please visit Revenue Canada website for more details.

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Do first time buyers pay land transfer tax?

If you are a first time home buyer you qualify for rebate of up to $2,000. Certain conditions and restrictions apply, read Land Transfer Tax

 Land Transfer Tax Calculator - http://calumross.com/mortgage-tools/tax-calculators-canada/land-transfer-tax/


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What is first time buyer tax credit?

To assist first-time home buyers with the costs associated with the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit—a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

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As an investor do I qualify for first time buyer rebates?

No. Real estate investment property does not qualify for first time buyer rebates. If you are a non-resident investor buyer you will treated equally as any other citizen or permanent resident of Canada.

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I am US resident relocating to Canada, will my US credit history help when shopping for home?

Yes, your US credit history will definitely play an important role. If you have secured a permanent job in Canada, then you may even buy with as low as 5% down payment. (*see above conditions)

Home Efficiency- What Government Grants exist www.theswissmortgage.com/CMHC_Green_Home.pdf

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