Homebuyers Assistance

Do you need more information on first time home buyers programs or plans? Contact our mortgage specialist for information on first time homebuyers mortgages, mortgage insurance, and government home buying applications.

Find Low Mortgage Rates

The search is on for the lowest mortgage rates, yet there's more to saving a few 100ths of a percent on your mortgage loan. The right mortgage for you might come to other options. Whether you're looking for a 5 year mortgage or a 30 year mortgage, a BMO specialist can help you navigate the complexities of home mortgages. Make Sellmississauga.com your new guide to low mortgage rates and home buying strategies.

HST a Looming Threat for Ontario Home Buyers

The harmonized sales tax introduced by the Liberal Government in Ontario will be put into effect in July 2010. Many home builders and Realtors believe this will have a deflating effect on Ontario real estate after July 1st. The HST will apply to new homes and to all home closing costs thus adding to the cost of buying a home in Ontario. Under the HST, new homes sold at less than $400,000 will qualify for a 6% tax rebate. New homes however, priced at more than $500,000 will be subject to an additional 8% tax. That adds an extra 30,000 dollars to the price of a luxury home. In Mississauga, most luxury condos and homes are priced above $500,000. In Toronto, prices are much higher and the HST is expected to have a degrading effect on sales when it kicks in.

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Tax on Resale Homes

OREA estimates the HST will add $1,449 in new taxes to an average resale home costing $302,354. And, OREA claims the HST will add an estimated $262 million in new taxes annually to residential resale real estate transactions.

For those struggling to gather enough for a down payment, the extra thousands of dollars in tax may prevent them from actually buying a home. One of the reasons the Ontario real estate market is heating up, besides the great November weather, is the fear of having to pay $30,000 to $60,000 more for a house beginning in July. Real Estate commissions will also now be subject to the HST.

HST New Home Rebate

The Federal government offers a GST/HST New Housing Rebate program which provides a rebate on part of the GST or the federal part of the HST paid on the construction or purchase of most newly constructed or substantially renovated houses used as a primary place of residence. You can get the HST Rebate application here.

Buying Older Homes

Older homes are exempt from the HST however HST will apply to other services related to selling your home. If you're considering buying an older home, you should know about the Ontario Home Energy Savings Program and Home Energy Retrofit Program which offers rebates for certain home improvements.

Great Location - 4 Bedroom Home for Sale
Luxury Condos Toronto

Why Buy Before July
 
The real estate market in greater Toronto is on fire. Before you get discouraged from buying in such a hot market, here are some major benefits to jumping in to the fire with everyone else.

HST takes effect July 1st, 2010. Generally speaking, life will be more expensive once HST takes effect. You probably won’t even notice HST when you are buying your morning coffee.  However, when you are dealing with real estate transactions that are in the hundreds of thousand of dollars you will certainly feel the pinch. Selling a home - If you sell after July 1st, 2010 you will pay HST (13%) on your real estate sales commission. Previous to July 1st you would only pay GST (5%).

Rising interest rates. Low mortgage rates have been fuelling the demand for real estate in 2010. Getting a super low mortgage rate means you can afford a higher priced home and pay less in interest. The Bank of Canada has kept it’s promise to keep the overnight rate at 0.25% until the second quarter of 2010 which means prime rate and any variable rate mortgage, loan or line of credit will start increasing by the July 20th Bank of Canada meeting. BMO Sr. Economist, Michael Gregory is forecasting fixed mortgage rates to go up well before the Bank of Canada raises their rate. With higher rates expected by July you will likely get a much higher fixed rate and there for pay much more interest. 

Feds may change mortgage rules. Finance minister Jim Flaherty is concerned that home buyers are taking on obligations they won’t be able to handle when mortgage rates rise. If excessive demand in the real estate market continues the federal government will take actions to slow the demand by increasing the minimum down payment and decreasing the maximum amortization. Currently the minimum down payment is 5% and could double to be 10%. Maximum amortization is currently 35 years and may be changed to 30 years or less.

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