Monday, November 15, 2010
Friday, November 12, 2010
Some worthwhile notes on buying a home here (copied from the Toronto Real Estate Board):
Additional Costs When Buying a Home
*
The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:
*
Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.
*
Appraisal fee: Lenders typically loan a percentage of the home's purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.
*
Land survey: The lender may ask for a current survey or certificate of location before signing off on the loan. There can be a substantial cost for having a new survey done on the property.
*
Deposit: A deposit normally goes with the formal offer to purchase.
*
Insurance: The lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership.
*
Title insurance: Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars.
*
Application fee: Some lenders will pass on the cost to process your application. These fees vary and some lenders will waive entirely if you have other accounts with them.
*
Mortgage broker's fee: If you use a mortgage broker, a fee may be charged to arrange a mortgage on your behalf.
*
Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you'd want to know before you move in.
*
Legal fees: You can save some of the legal fees usually charged by the lender if your lawyer draws up the mortgage. You'll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.
*
Land Transfer Tax: Use the land transfer tax calculator accessible from the home page of this website to calculate both your Ontario and City of Toronto (if applicable) land transfer taxes. First time home buyers qualify for a maximum $2,000 (LTT on a $227,500 home) provincial rebate and a maximum $3,725 (LTT on a $400,000 home) City of Toronto rebate.
*
Goods and Services Tax: Resale (used) homes are exempt from GST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.
*
For new homes costing $350,000 or less, you will receive a GST rebate of 36% of the GST paid to a maximum of $8,750. The rebate for new homes costing between $350,000 and $450,000 declines to zero on a proportional basis. GST also applies to most of the services provided in completing the real estate transaction.
*
Other costs: These include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.
Additional Costs When Buying a Home
*
The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:
*
Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.
*
Appraisal fee: Lenders typically loan a percentage of the home's purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.
*
Land survey: The lender may ask for a current survey or certificate of location before signing off on the loan. There can be a substantial cost for having a new survey done on the property.
*
Deposit: A deposit normally goes with the formal offer to purchase.
*
Insurance: The lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership.
*
Title insurance: Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars.
*
Application fee: Some lenders will pass on the cost to process your application. These fees vary and some lenders will waive entirely if you have other accounts with them.
*
Mortgage broker's fee: If you use a mortgage broker, a fee may be charged to arrange a mortgage on your behalf.
*
Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you'd want to know before you move in.
*
Legal fees: You can save some of the legal fees usually charged by the lender if your lawyer draws up the mortgage. You'll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.
*
Land Transfer Tax: Use the land transfer tax calculator accessible from the home page of this website to calculate both your Ontario and City of Toronto (if applicable) land transfer taxes. First time home buyers qualify for a maximum $2,000 (LTT on a $227,500 home) provincial rebate and a maximum $3,725 (LTT on a $400,000 home) City of Toronto rebate.
*
Goods and Services Tax: Resale (used) homes are exempt from GST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.
*
For new homes costing $350,000 or less, you will receive a GST rebate of 36% of the GST paid to a maximum of $8,750. The rebate for new homes costing between $350,000 and $450,000 declines to zero on a proportional basis. GST also applies to most of the services provided in completing the real estate transaction.
*
Other costs: These include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.
Thursday, October 28, 2010
Kingston Real Estate news - CREA's New Deal
The following is a letter from RE/MAX Ontario Atlantic's Vice-President in response to the recent ratification of a deal between the Competition bureau and the Canadian Real Estate Association:
October 26th, 2010
CREA ratification of Competition Consent Agreement
Despite all the media hoopla associated with Sunday's vote by CREA members to ratify the Competition Consent Agreement, it will be business as usual for real estate professionals across the country.
The public will continue to access listings on the MLS system or Realtor.ca, but any posts to the system remain firmly in the hands of local realtors. Under the terms of the new, 10-year agreement, CREA and the Boards cannot prevent or discriminate against 'mere postings' and members who offer 'mere postings.' CREA does not believe that such rules exist today-but if they do-they must be repealed or Boards will lose their license to operate under the MLS trademark.
So all in all, it's business as usual. Sure, consumers have more choices, but then again, they always have. Discount brokers have been around for years. There is a reason why the MLS system is responsible for 90 per cent of resale housing transactions in the country. Canadians rely on the full-service approach provided by the country's 100,000 real estate professionals. Regardless of alternatives, most people require the services of an experienced agent to sell their home.
All we need to do is look south of the border-where the process is similar-for confirmation of that fact. According to the National Post, "the U.S. Department of Justice negotiated an anti-trust settlement with the National Association of Realtors allowing internet brokers and other agents offering discounted commissions to access the MLS in 2008. Two years later, traditional full-service brokers still control between 70 and 80 per cent of the U.S. housing market, and the average commission has increased to 5.3 per cent of the sale price from five per cent in 2008."
In fact, NAR statistics provided by the National Post show 80 per cent of sellers use a full-service broker, managing most of a transaction from listing to closing. Another nine per cent choose limited services that include discount brokerage and 11 per cent opt for the bare minimum of just listing on MLS.
There's a story to be told here. Consumers place value on the services we provide as realtors and that's not about to change. Why? We have the knowledge and expertise to generate results. Few are willing to take chances with their most valuable asset. As Canada's leading real estate organization, we will continue to do what we do best-assisting buyers and sellers with the biggest financial decision of their lifetime.
Take a moment to look at our new marketing campaign on the critical role of a RE/MAX agent. It is easily found on www.FitToSell.ca. This timely campaign demonstrates the value of using a professional RE/MAX agent. It should help offset some of the negative press, until things settle.
As I said, business as usual.
October 26th, 2010
CREA ratification of Competition Consent Agreement
Despite all the media hoopla associated with Sunday's vote by CREA members to ratify the Competition Consent Agreement, it will be business as usual for real estate professionals across the country.
The public will continue to access listings on the MLS system or Realtor.ca, but any posts to the system remain firmly in the hands of local realtors. Under the terms of the new, 10-year agreement, CREA and the Boards cannot prevent or discriminate against 'mere postings' and members who offer 'mere postings.' CREA does not believe that such rules exist today-but if they do-they must be repealed or Boards will lose their license to operate under the MLS trademark.
So all in all, it's business as usual. Sure, consumers have more choices, but then again, they always have. Discount brokers have been around for years. There is a reason why the MLS system is responsible for 90 per cent of resale housing transactions in the country. Canadians rely on the full-service approach provided by the country's 100,000 real estate professionals. Regardless of alternatives, most people require the services of an experienced agent to sell their home.
All we need to do is look south of the border-where the process is similar-for confirmation of that fact. According to the National Post, "the U.S. Department of Justice negotiated an anti-trust settlement with the National Association of Realtors allowing internet brokers and other agents offering discounted commissions to access the MLS in 2008. Two years later, traditional full-service brokers still control between 70 and 80 per cent of the U.S. housing market, and the average commission has increased to 5.3 per cent of the sale price from five per cent in 2008."
In fact, NAR statistics provided by the National Post show 80 per cent of sellers use a full-service broker, managing most of a transaction from listing to closing. Another nine per cent choose limited services that include discount brokerage and 11 per cent opt for the bare minimum of just listing on MLS.
There's a story to be told here. Consumers place value on the services we provide as realtors and that's not about to change. Why? We have the knowledge and expertise to generate results. Few are willing to take chances with their most valuable asset. As Canada's leading real estate organization, we will continue to do what we do best-assisting buyers and sellers with the biggest financial decision of their lifetime.
Take a moment to look at our new marketing campaign on the critical role of a RE/MAX agent. It is easily found on www.FitToSell.ca. This timely campaign demonstrates the value of using a professional RE/MAX agent. It should help offset some of the negative press, until things settle.
As I said, business as usual.
Sincerely,
Michael Polzler
Executive Vice President, Regional Director
RE/MAX Ontario-Atlantic Canada Inc.
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