Land Transfer for First Time Home Buyers in Toronto and Ontario outside Toronto

Did You Know?

First Time Home Buyers Pay less land transfer taxes.
In Toronto there is an additional Land Transfer tax that is paid also by First Time Home Buyers

Example for a property of 500,000

First Time Home Buyers
-in Toronto pay $6475
-In Ontario outside Toronto pay $4475

Ontario Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $250,000

1.5% - over $250,000

2.0% - over $400,000

Qualifying first time home buyers receive a $4000 credit from January 1 2017

Toronto Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $400,000

2.0% - over $400,000

First time buyers are exempt on the first $400,000 approx $3700 rebate

Land Transfer Ontario and Toronto

Did you know?

That if you purchase a property in Toronto you pay 2 taxes Ontario Tax and Toronto tax?

If you purchase a house outside Toronto you pay only Ontario Land Transfer Tax

Example
For a property of $500,000 you pay $12200 in taxes if the property is located in Toronto or $6475 if the property is located outside Toronto York Region for example.

Ontario Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $250,000

1.5% - over $250,000

2.0% - over $400,000

Qualifying first time home buyers receive a $4000 credit

Toronto Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $400,000

2.0% - over $400,000

First time buyers are exempt on the first $400,000

How to Save for Down Payment for a House or Investment Property

The typical down payment for a home is generally 20 percent, but there are a variety of programs that can open the door to home ownership with as little as 5 percent.

Open A Savings Account

Open a savings account online or at the same bank or credit union where you now do your checking. The reason to use one institution is convenience: Most banks and credit unions allow you to transfer funds back and forth from accounts electronically and instantaneously. 

Start a Budget

The easy way to establish a budget is to use a spreadsheet — show your monthly gross income and then subtract taxes and other costs from your pay stub. This will give you your net income after taxes. Next, show what you pay for other monthly costs such as rent, student loans, car payments, and credit card bills. Subtract these costs from your net income.

In very short order you’ll be able to see how much you take in — and how much goes out. Now you can ask the magic question: Where can costs be cut?

Given that income and expenses are closely matched in many households, the only way to get ahead is to bring in more money or change your spending habits (meaning spend less) and avidly look for new savings sources.

Set a time to Review Your Spending and Savings

Set a time to review your spending and budget, say every Mondays of every week. 

• Prepare a budget and stick to it. Avoid spending on non-essential items and impulse purchases, as this type of spending delays your dream of owning your own home
• Put money towards your home deposit first. Open a separate bank account, ideally a high-earning savings account, and set-up an automatic transfer for every pay day, and make top-ups whenever possible
• Pay off your credit cards and any personal loans or hire purchase agreements. Reducing or eliminating these debts will help you increase your borrowing power
• Record and analyse your expenditure over a month to reveal opportunities for savings. Write down everything, including miscellaneous items, such as coffees, taxis, presents and meals out. ( reduce all non essentials spending)
• These everyday extras can add up over time. For instance, two takeaway coffees a day can cost up to $200 a month; money that could be put towards saving for a deposit for your first home
• Look around for deals, coupons.

 Look for cheaper ways to do things

This is how smart people save a lot of money. They make a lifestyle of finding cheaper ways to do things without diminishing their fun. Here are some great examples:

• Do you buy a lot of new books? Try the library. They have zillions of books that you can borrow for free.
• Do you go out to a lot of movies? Try renting or sticking with antenna. Some people are now even dropping their cable in favor of watching shows online. This works really well in the U.S., but it is getting better in Canada.
• Do you eat out a lot? Try eating out less or look for cheaper places to eat that you still like. You can also look for 2 for 1 coupons or buy an Entertainment Book and only eat at the places that have coupons (this will cut your eating out budget in half).
• Do you spend a lot of money on your hobbies? Try spending less or finding other hobbies that cost less—at least for a while.
• Do you buy a lot of new clothes? Try sticking with your current wardrobe for a little longer, or selectively buy clothing items that coordinate with what you already have. This will allow you to put together more outfits with fewer clothes. When you buy your clothes, look for sales.
• Do you take expensive vacations? Try something less expensive or closer to home.
• Do you buy a lot of new music? Try listening to the radio more, borrow music from the library or buy a card to monitor how much you download (and then you get what you actually want to listen to!).
• If you have a busy family, you can really save money if you eat at home more often (and this includes buying less snacks and drinks on the run), and look for fun things to do around your community that are free or don’t cost very much. If you go to the movies a lot, try renting. If you rent a lot, you could save even more by checking out the library. Many libraries have videos you can borrow for free. This option is really great for kids.

If you are able to work some of these changes into your lifestyle, you will definitely save money. However, the key to saving money is to resist the temptation to spend it on something else right away, and to start considering the cheaper alternatives.

Weekly Records of Your Money

Here is a little chart that you can use to keep track of your money

Date
Money You have	Amount	Debt	Amount
Saving Account		Viza
Cequing account		Credit Line
RRSP		Total	Total 2
Other currencies		Total General	Total 1-Total2
Investments
Cash		Equity in the house/investment
TOTAL	Total 1	Value of the house – Mortgage Principal

Types of Mortgages in Canada

Pre-Approved mortgages A pre-approved mortgage allows you to start your home search, based on qualifying for a mortgage in advance. You will be given the best rates, and the rate will be guaranteed for up to 120 days.

Conventional mortgages If you have 30 percent of the purchase price or more, as a down payment, you can apply and be eligible for a conventional mortgage. Depending on the type of property or location, you may be required to obtain Canada Mortgage and Housing Corporation (CMHC) insurance, or Genworth Financial Canada (GE Canada) insurance.

High ratio mortgages If you have 5 to 30 percent of the purchase price as a down payment, you will need to apply for a high-ratio mortgage. A high ratio mortgage needs to be insured through Canada Mortgage and Housing Corporation (CMHC), or Genworth Financial Canada (GE Canada). This type of mortgage insurance allows you to qualify for a high-ratio mortgage. An insurance premium is charged when you receive your funds. The insurance amount can be included in the mortgage payments or paid separately. The premium payment is calculated by multiplying the amount of the mortgage with the percentage of the total purchase price.

Open mortgages An open mortgage is a type of mortgage that allows you to pay back part or the entire mortgage without penalties. These mortgages have shorter terms, usually six months to one year. They come with higher interest rates than closed mortgages.

Variable mortgages A variable or adjustable rate mortgage payment will change as the prime rate interest changes. The calculated principal and interest rate will change. When interest rates drop, more of your payment will go to the principal. When interest rates rise, the opposite will occur. Some variable rate mortgages allow you to pay off part of your mortgage or all of it, without penalties, or some will charge and penalty. Interest rates are compounded monthly on most variable rate mortgages.

Capped rate mortgages A capped rate mortgage is a variable rate mortgage which has been capped at a certain interest rate. Your lender sets the rate and if interest rates rise higher than your capped rate, you will not be affected. These mortgages are not portable and have a penalty for full payment.

Closed mortgages Traditionally, a closed mortgage meant that you could not pay the mortgage in full or partial payments without a penalty, except for a sale of the property. There have been changes to this type of mortgage and there are ways to pay it off quicker.

Fixed Rate mortgages A fixed rate mortgage means that your interest rate is locked in for a period of time which could be from three months to 30 years. The rates are also lower than an open mortgage. If mortgage rates are predicted to rise, this is often the best choice. Lenders have different options available for prepayment of a mortgage, although many impose penalties, sometimes a hefty payment.

Convertible mortgages

A fixed rate mortgage for a short six month or one year term can be converted to a longer term without penalty as long as you stay with the same lender.

Bridge Financing Bridge financing is a short term loan that is provided when you have a gap to cover between the sale of one property and the acquisition of another and the purchased property closes before the sold home. You will have two mortgages to carry. A bridge loan covers this period.

Reverse mortgages A reverse mortgage is available through the Canadian Home Income Plan. This type of mortgage allows a homeowner to convert the equity in their home into cash. There is no need to sell the property and there are no monthly payments. A homeowner applying for this type of mortgage must be 62 years of age, or older and have a significant amount of equity in the property. This mortgage is available in Ontario and British Columbia. The older a person is, the more that they can borrow. You can borrow between 10 and 40 percent of the appraised value. A homeowner will retain ownership and can still reside in the home. When the homeowner dies, the property is sold and the loan and interest are repaid. Interest is continually accruing on this type of mortgage and there many not be much money left from the sale of the property after this loan is paid off.

Feng Shui tips to Attract the Energy of Wealth and Abundance

If you were to tour a home on a real estate search and want to see all of the rooms of the home, you cannot see all of the rooms at once. You must flow through the home one room at a time. If some doors are jammed or locked, it may be particularly difficult to see some aspects of the home. 

Good feng shui in your home or office does not bring you wealth if you do not strive for it, but it does give you the necessary support to attract the energy of money. 

Feng shui helps you create an environment, both at home and in your office, that strengthens you and helps attract the energy of wealth.

The best feng shui money energy foundation is having your home and business free of clutter.

Good feng shui money energy also means maintaining high oxygen levels at all times. This means your space has fresh air with a vibrant quality to it, and decorating with feng shui air purifying plants is the best (and the easiest!) feng shui way to help keep the energy in your space vibrant and “wealth-ready”.

Natural light is obviously very important. In order to attract (and keep, as well as multiply!) the energy of abundance, you have to create an honestly good quality of energy in your space, there is no way around it. 

Water

Water is an ancient symbol of abundance in all cultures, not only in feng shui.If a fountain will not work in your space or you are just not comfortable with the idea, you can use images of flowing water such as waterfalls, rivers, etc. Any water image is an excellent feng shui for wealth energizer, just be sure the water is clear and moving. So, images of a fast flowing river or a waterfall, for example, are better feng shui for wealth cures than the images of a quiet lake or a pond.

Decor

The overall decor in your money area has the appropriate feng shui colors, items, shapes and images, all expressing the Wood and the Water feng shui elements. A bit of Fire feng shui element decor is always good and serves as an energizing factor.

Wealth Cures

Take your time and bring into your space only the wealth cures that really speak to you of abundance and wealth. No matter what you choose – an aquarium for wealth or the Laughing Buddha, be sure you choose wisely.

Based upon the principles of Feng Shui, when improvements are made to the Prosperity corner of your surroundings in combination with improvements made to complementing areas, you can start to see real results to your wealth and income.


The Feng Shui Bagua




The Feng Shui Bagua overlays onto the floor plan of a home with the bottom of the Bagua lining up with the wall of the front door.

Using the colorful Bagua, we can now look at the individual areas so that we can determine how we affect and are affected by the Chi that flows through these segmented surroundings.

Best Colors: Purple, Green, Gold, & Red

Here are some of the best money items you can place in your Wealth / Prosperity / Money corner to stimulate positive Feng Shui.

The Color Purple

In Feng Shui, purple is the best color to stimulate and increase your abundance. Historically-speaking, purple was the hardest color to make, so only royalty wore purple to show that they were wealthy.

Hang purple curtains on your windows or have a purple throw blanket on furniture that you may have in this corner.

Alternatively, you can use a purple vase that can work as your Prosperity Vase, where you can put money in everyday as you are imagining this money growing like magic beans into a huge money tree that will take you to that giant in the sky.

The Color of Money

Be sure to use green as another money symbol in Feng Shui since money is green!

Plants that have rounded-leaves, if they bear fruit, are even better! Just make sure there are no thorns on that plant and if your Prosperity corner is in your bedroom, do not put plants in your bedroom.

The Midas Touch

Gold is another wealth color in Feng Shui.  In your Prosperity corner you could have gold coins, gold jewelry, or gold frames with photos of people or family members whose wisdom and financial success you admire.

Dream Boards and Symbols of Goals

This would be a great area of your home to have a dream board or any symbols that remind you of wealth and abundance, such as dream home, yacht, exotic cars or dream vacations.

Free-Flowing Money

Make sure that your home as well as your wealth spots are free of clutter and sparkling clean. You don’t want to stop the flow of energy in your money corner.

Feng Shui and Energy

In Feng Shui, we see the front door of a home as the mouth of incoming energy. From there, an ideal flow of life-giving Chi would cycle through different areas of the home represented by important elements to our existence, starting with the front door: water, wood, fire, earth and metal.

Think of it this way: Chi that flows into your home starts by energizing water. Water, in turn, nourishes wood trees. Wood then fuels fire. Fire rejuvenates earth. Over time, earth and its processes create metal. To renew the cycle, metal gives water a path through which to flow.

This is what is called a creative cycle in Feng Shui and it should flow in a clockwise motion in a home’s layout, starting with the front door. A well-energized and free-flowing creative cycle will provide harmony and balance in the lives of its occupants. This is where the placement of doors, stairs and walls in the floor plan can be crucial for the energy flow.

In Feng Shui, it is all about creating balance. Creating a balanced energy in homes is important so that future residents living in the space can live healthy, harmonious and fruitful lives.

Feng Shui Principles in Selling a House

If you've ever walked into a house, as a potential buyer, and said: "it just feels right," then you understand the basic principles of Feng Shui. This ancient Chinese practice involves making energetic and physical adjustments to a space in order to create balance and flow. And, in the midst of a recession when selling your house or condo may seem nearly impossible, it may just be the answer to your real estate woes. 

Set your intention 

It is necessary that everyone in the family is clearly intent on selling the house, because lingering doubts can serve as an energy umbilical cord, refusing to let go. Consider writing out your intentions: how much you want the house to sell for, what your bottom-line requirements are, and how quickly you want the house to move, 

Fix it up

Apply a fresh coat of paint, re-caulk your bathrooms, clean your carpets and ensure all appliances are in working order. 

De-clutter

According to the principles of Feng Shui clutter robs a space of its Chi. "When you walk into a teenager's room you may feel the chaotic energy, like that of a pinball bouncing all over the place, That's the feeling a cluttered house will give off." Consider renting a storage unit and get rid of one-third of all your possessions. "Once you clear out excess furniture and decor, you’ll be able to tone down the energy and allow for clarity and focus,"

Focus on the front door
When potential buyers come to see your house, they'll probably enter through the front door. But, if you typically use the garage or even a side door, then the energy around the front entrance way is likely stale. "Positive Chi energy really begins with your front door,

 First, get in the habit of using the front door while you’re trying to sell. Then, oil the locks (to ensure nothing sticks) and apply a fresh coat of paint. Ensure that the main foyer is as open and spacious as possible and watch for sharp edges that may be pointing toward visitors as they enter. "In terms of Feng Shui, the front door pertains to the buyer's motivation to make a purchase and how welcome they feel upon entering the home."

Wake up the energy 
While you don’t want the energy of your house to flow too quickly (as happens in a messy or cluttered space) you also don't want it to feel stagnant. To wake-up the energy flow, begin by using every room in the house. "If a room sits empty, even if it’s clean and well-decorated, it will begin to feel stale on an energy level,"

To bring an unused room back to life consider opening a window, buying a plant, moving your pet’s bed into that space, turning on a radio, or at the very least, wandering in and out on a daily basis.

Clean the windows 
According to Feng Shui, windows act as our eyes and provide focus and insight. To help your buyer feel clear about his or her intentions, wash your windows regularly, and keep window-coverings simple, highlighting the view as opposed to closing up the curtains.

Enhance the Energy Zones 

"For the purpose of selling, there are four zones

1. Wealth (back, left from the front door), 
2. Helpful People (right of the front door), 
3. Career (at the front door) and 
4. Fame (straight back, across from front door). 

 In the Wealth zone consider placing trees or furniture made of wood. The colors red, purple and green help to create feelings of abundance while wind energy (think: mobile or chimes) enhances the space. 

The Helpful People zone likes metal energy, modern clean lines and subdued, metallic colors. An easy way to bring these elements into a room would be through black and white photographs or a replica of the Eiffel Tower. 

The Career zone likes water energy and the color yellow. Either install a water feature (such as a fountain) inside or outside the front of your house, or fill a large vase with water and fresh-cut yellow flowers. Even consider choosing artwork for the foyer that depicts water. 

The Fame zone loves fire energy so if you have a fireplace in that area, be sure to light it when people come to see the house. Candles, extra lighting and bright reds also help enhance this part of the house. 

Finally act as if the property has already sold. "Spend time in the neighborhood you plan to move to, start cleaning out your closets, and think as though the sale has already happened."

Costs Involved With Selling a Property

There are costs involved with selling your home. Some minor repairs and upgrades can make your home more attractive to potential buyers.

Here are some costs involved with selling your home:

• A professional home inspection
• Closing costs (lawyers' fees or unpaid taxes)
• Mortgage discharge fees may be levied by your lending institution
• Sales commissions
• Staging based on recommendations