New federal measures will make it more difficult for homebuyer’s to get government backed mortgages. The measures are set to take place on April 19, 2010.
Homebuyer’s will now have to settle for a less expensive home or have a higher mortgage, The Toronto Star reported on Tuesday February 16, 2010.
The new rules will:
> Require all homebuyers to meet the higher borrowing qualification for a five-year fixed rate mortgage, even if seeking a mortgage with a lower interest rate and shorter term. Therefore thousands of buyers will have to provide a higher down payment or buy a less costly home.
> Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 percent of the value of their homes from 95 percent. Finance minister Jim Flaherty says this will discourage people from using their homes as “ATM machines”.
> Require a minimum down payment of 20 percent for government-backed mortgage insurance on non-owner-occupied properties “purchased for speculation”. This measure is meant to hold down speculative investments in non-owner-occupied residential properties involving one to four living units.
Flaherty says the government wants to slow down the fast-rising house prices and prevent homebuyers from getting into mortgages that they cannot afford once low interest rates move up from their current levels once the recession ends.
Home Buying to Get Tougher
Back to Reality!
Ray and I are truly looking forward to 2010. We've got some new adventures planned for our online marketing, and our real estate careers. Stay tuned for Vlogs (Video Blogs) coming soon and more!
If you are thinking of buying or selling in 2010, or know someone who is, please do not hesitate to contact me at any time. Or if you'd just like an update on the local Real Estate Market I would be glad to give you some insight and answer any questions you may have. It's always great to hear from you!
You can email me at Amie@RealtorAmie.com or visit my website at http://www.RealtorAmie.com or call me at (519) 583-2680.
If you're a twitter'er you can follow me at http://twitter.com/RealtorAmie or you can follow me on facebook by clicking here.
Happy New Year and thank you for visiting my blog. Check back often for up-to-date real estate information!
Why Hire a Local REALTOR®
Whether you are a Buyer or a Seller, local REALTORS® know the market, the prices it is achieving and are able to show you comparable sales for your property. Local REALTORS® can help you feel confident that you are not overpaying for your new home or that you are getting fair market value for the home you are selling.
Being born and raised in Port Dover and still residing here in Norfolk County, I consider myself a local REALTOR®. I know the communities and the people who make them whole. I can direct you to the plumbers, electricians, lawyers, doctors, banks, churches, children's sporting organizations and any other such amenities. I compile lists of potential Buyer's who may be interested in Norfolk County homes. I also provide my client Buyer's with new listings the instant they are listed on the Multiple Listing Service® (MLS®). By focusing solely on the market I know best, I can provide you with information and services only a local REALTOR® would be able to provide.
A local REALTOR® can offer you many benefits. Below are a summary of just a few.
Your local REALTOR® knows your neighbourhood, or the neighbourhood you want to live in.
Your local REALTOR® will save you time and money. They will impress you with their knowledge of the local market. Local REALTORS® have access to market history & current trends that are required to prepare a market analysis of your property to determine an asking price or to determine a possible purchase price of your new dream home.
Your local REALTOR® will have the inside edge. Being active within your community a local REALTOR® would have lists of potential Buyers for your home and immediate access to any new listings, therefore giving their Buyer’s an advantage.
Your local REALTOR® is close to home. Whether buying or selling your local REALTOR® can attend to a showing quick and easy. Thus, showings of your home will not be missed and the opportunity to buy your dream home won’t be at risk of being “too late!”
Your local REALTOR® is full of “Local Knowledge”. From schools to churches, children’s sports, doctors, lawyers and more your REALTOR® has the information to help you make and informed decision on your move.
Your local REALTOR® also has access to Municipal information such as zoning, taxes and assessments, by-laws and more. They can direct your questions and concerns to the proper people and help make your move or sale as smooth as possible.
Your local REALTOR® knows the local trades. If you need a plumber, electrician, builder, or any other contractor, your local REALTOR® knows who can get the job done. Whether Buying or Selling they can get quotes and answers quickly.
When it's time for you to buy or sell, call a local REALTOR®. And always remember A LOCAL REALTOR® IS GUARANTEED TO KNOW YOUR AREA!
7 Home Improvements to Increase Your Home's Value
Below are the top seven home improvements from MoneyCrashers.com along with some personal tips to help increase your homes value when completing your renovations.
- Remodel the kitchen - Take into account the value of your home. If your home is worth around $750,000.00 you should consider a $50,000.00 kitchen makeover. If you home is worth $250,000.00, you should invest $5,000.00 - $10,000 in your renovation. Instead of new cupboards, try refinishing the ones you have. New flooring, upgraded counter tops, sinks and fixtures are great items to address and can also be inexpensive.
- Remodel the bathrooms - this does not need to be a lot of work. Simple updates in things such as a new vanity, flooring and fixtures can add great value and can be completed for less than $5,000.00. If you have one of those older bathrooms, with a yellow, green or even pink tub and toilet perhaps consider Bath Fitters. With excellent and inexpensive options, Bath Fitters can transform your bathroom in as little as one day! You can get more information about Bath Fitters at www.Bathfitters.com
- Install a privacy fence - by installing a privacy fence you will get good return for your money! Not only will you give your property some privacy, but you home will also appeal to Buyers with children and pets.
- Replace the windows - New windows help improve energy efficiency in your home. With the new "Mandatory Home Energy Audit" set to become Provincial legislation next spring, new windows will not only benefit a Buyer for your home, but also yourself when it comes time to sell. At the time of a viewing, most Buyers will ask the question "how old are the windows?"
- Finish your basement - adding drywall, flooring and ceilings can expand your living space very quickly, and add value to your home.
- Replace your roof - just like windows, one of the first questions Buyers ask when viewing a home is "How old is the roof?" When we talk about the roof we don't just mean the shingles. Replace the sheathing while you're up there to ensure any old damage is completely repaired. If your house is compared to the neighbours house and yours has a new roof you'll likely be at an advantage.
- Add a deck - What a great place to entertain and barbecue. Decks are a great selling feature, and they never go out of style.
Hopefully you still have time to take advantage of the tax credit available until February 1, 2010. For more information on the this rebate click here.
HAPPY RENOVATING!!
Top seven tips compiled from www.MoneyCrashers.com. Tip explanations courtesy of www.MoneyCrashers.com and REALTOR® Amie Trinder.
HST legislation means big tax increases to buyers, sellers & home owners in Ontario
Today the Government of Ontario formally launched its latest assault on homeowners, buyers and sellers with the introduction of Bill 218, the Ontario Tax Plan for More Jobs and Growth Act, 2009, says the Ontario Real Estate Association.
Effective July 1, 2010, home buyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, home energy audits, and moving costs.
The Ontario Real Estate Association estimates that the new tax will add $1,449.00 in new taxes to an average resale home costing $302,354.00. OREA also estimates that the HST will add an estimated $262 million in new taxes annually to residential resale real estate transactions.
For homeowners the HST will also add hundreds of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. OREA estimates HST on these services will add $480 in annual tax to the homeowner (based on a family that budgets $500 per month for such costs).
Help stop the HST today. Send a letter to your local MPP and let them know you oppose this new tax.
How do you contact your local MPP? Send me an email and I will reply with your MPP's email address.
Cut Energy Costs
Warm air leaking out of your home during the winter months can waste a large portion of your energy dollars. But a well insulated and weatherized home can reduce your heating costs by up to 30 per cent. This is especially important given today’s higher utility costs.
Identify the energy wasters
A home energy audit will show you where your home may be wasting energy. You can do a simple audit yourself or many local utility companies will conduct energy audits for free or for a nominal charge.
For a fee, a professional contractor will analyze how your home’s energy systems work together and compare the analysis against your utility bills. Your local utility can provide you with many more ideas to save energy in your home, but identifying the energy wasters is a good place to start. Once you know the places where you’re losing energy, you can assign priorities for improvement.
When formulating your plan, you may want to ask yourself the following:
- How much do you currently spend on energy?
- Where are the greatest energy losses?
- How long will it take for an investment in energy efficiency to pay for itself in energy saving?
- Can the work be done by you or should you hire a contractor?
- What is your budget, and how much time do you have to spend on maintenance and repair?
Check your home's insulation system
First check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if it meets the levels recommended for your area. Insulation is measured in R-value – the higher the R-values, the better your walls and roof will resist heat loss.
The easiest and most cost-effective way to insulate your home is to add insulation in the attic. To find out if you have enough attic insulation, measure the thickness of insulation. If there is less than R-22 (7 inches of fiberglass or 6 inches of cellulose) you should probably add more. If your attic has enough insulation and you are still feeling a chill, chances are you need to add insulation to the exterior walls as well.
Recommendations for cost-effective energy improvements
Heating
- Set your thermostat as low as is comfortable in the winter.
- Clean or replace furnace filters once a month or as needed.
- Clean warm-air registers, baseboard heaters, and radiators as needed; make sure they’re not blocked by furniture.
- Use kitchen, bath, and other ventilating fans sparingly; in just one hour these fans can rob a houseful of warm air.
- Keep drapes and shades on your south-facing windows open during the day to allow sunlight to enter your home.
- Select energy efficient heating equipment and appliances.
- Install exterior or interior storm windows and caulk, seal and weatherstrip all seams, cracks and openings to the outside.
Water heating
- Repair leaky faucets promptly; a leaky faucet wastes gallons of water in a short period of time.
- Insulate your electric hot-water storage tank and pipes.
- Install low-flow faucets and showerheads
- Lower the thermostat on your water heater.
- Take more showers than baths. Bathing uses 15-25 gallons of hot water while a 5-minute shower uses less than 10 gallons.
Lighting
- Turn off the lights in any room you are not using, or install timers, photo cells, or occupancy sensors to reduce the amount of time your lights are on.
- Use task lighting instead of lighting the entire room.
- Use compact fluorescent bulbs which are four times more energy efficient than incandescent bulbs and provide the same lighting.
Home Renovation Tax Credit
The HRTC is a tax credit for eligible expenses incurred for work performed or goods acquired in respect of an eligible dwelling.
These claims can be made on your 2009 income tax provided the work performed or goods acquired were done so after January 27, 2009 and before February 1, 2010.
What is an eligible dwelling?
An eligible dwelling of an individual is a housing unit located in Canada. All the following conditions must be met:
- You own at the time of the renovation or alteration, alone or jointly with another person, the housing unit or share of the capital stock of a co-operative housing corporation you acquired solely to get the right to inhabit the housing unit owned by that corporation; and
- You, your current or former spouse, or your current or former common-law partner, or any of your or your spouse or common-law partner's children ordinarily inhabited the housing unit at any time during the eligible period.
Who is eligible for the credit?
Eligibility for the HRTC is family based. Eligible family members include you and your spouse or common-law partner, and your or your spouse's or common-law partner's children who are under 18 years of age at the end of 2009 (other than a child who, at any time during the eligible period - after January 27, 2009, and before February 1, 2010 - was married, was in a common-law relationship, or had a child).
The claim can be split among eligible family members but the total amount claimed cannot exceed the maximum allowable.
If two or more families share the ownership of an eligible dwelling, each family can claim its own credit (i.e., each up to $1,350) that is calculated on its respective eligible expenses.
How is the credit calculated?
The HRTC is only available for the 2009 tax year and applies to the total eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 [($10,000 - $1,000) x 15%].
What are eligible expenses?
Expenses are eligible when they are incurred by an eligible family member and are directly attributable to a renovation or alteration to an eligible dwelling (including the land that forms part of the eligible dwelling) and are of an enduring nature and integral to the dwelling.
A general rule is that if the item you purchase will not become a permanent part of your dwelling, it is not eligible.
For examples of eligible and ineligible expenses please click here.
All expenses must be supported by acceptable documentation. Be sure to keep all record, receipts, quotes and bills.
What if I own two eligible properties?
If you, your current or former spouse or your current or former common-law partner or any of your or your spouse or common-law partner's children ordinarily inhabited each property at any time during the eligible period, eligible expenses incurred for both properties will generally qualify for the HRTC. However, the maximum amount of eligible expenses you can claim for the HRTC is $10,000.
If the main reason for owning the recreational property is to gain or produce income, expenses related to the property are not eligible for the HRTC. However, you will not be considered to own the property to gain or produce income if you receive only incidental income related to the property.
How do I claim the HRTC?
A new schedule will be included in your 2009 tax package to allow you to list your eligible expenses and to calculate the amount you can claim. Also, a new line will be added to Schedule 1 to claim the HRTC.
If you are filing a paper return, do not include your receipts or documents supporting your claim. Keep them in case we ask to see them. You must however attach the new HRTC schedule to your paper return.
For further information on how to claim the HRTC, what the Candian Revenue Agency considers acceptable documentations and other related information click here.
Information gathered from The Canadian Revenue Agency.
LAND TRANSFER TAX
In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry offices.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
In some cases, land transfer tax is based on the fair market value of the land, for example, where:
- a lease can exceed 50 years;
- land is transferred from a corporation to one of its shareholders; or
- land is transferred to a corporation, if shares of the corporation are issued.
HOW MUCH DO I PAY?
The tax rate has not changed since June 1, 1989.
- 0.5% of the value of consideration for the transfer up to and including $55,000,
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000,
- 1.5% of the value of the consideration which exceeds $250,000, and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
As of December 13, 2007 the Ontario Government introduced a Land Transfer Tax rebate for all first time home buyers; for new or resale homes. Prior to December 13, 2007, this rebate applied to new construction only.
First-time homebuyers may be eligible for a refund of all or part of the tax.
Applications for a refund must be made within 18 months after the date of the transfer.
Click here to calculate your land transfer tax!
WHEN DO I PAY THE LAND TRANSFER TAX?You must pay Ontario's land transfer tax at the time the transfer is registered.
If the transfer is not registered, you must submit a Return on the Acquisition of a Beneficial Interest in Land to the Ministry of Revenue along with payment of tax within 30 days.
Exemptions from land transfer tax are limited. The main exemptions include:
- certain transfers from an individual to their family business corporation;
- certain transfers of farmed land between family members;
- certain transfers between spouses;
- certain transfers of a life lease from a non-profit organization or a charity.
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered in a land registry office.
For more information about exemptions and deferral of land transfer tax, refer to this list of land transfer tax bulletins.
Information courtesy of the Ontario Ministry of Revenue.
MLS® Home Sales Grow Stronger in the Third Quarter
Actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since early 2002.
Seasonally adjusted national MLS® home sales numbered 127,941 units in the third quarter, up 12 per cent from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS® home sales activity now stands 48 per cent above the low reached in the fourth quarter last year.
“Momentum for sales activity remained strong throughout the third quarter,” said CREA President Dale Ripplinger. “Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market.”
Actual (not seasonally adjusted) MLS® home sales activity remained strong throughout the quarter. Resale activity in September 2009 posted the fourth consecutive increase from year-ago levels, all of which exceeded 15 per cent. Sales numbered 42,497 in September, up 17 per cent year-over-year and a new record for the month.
Climbing to $327,736, the national MLS® residential average price rose 11 per cent from the same quarter last year. The national average price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.
July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.
On a seasonally adjusted basis, the supply of homes coming onto the MLS® market edged up in the third quarter after four consecutive quarterly declines. Seasonally adjusted MLS® residential new listings were up one per cent from the previous quarter to 199,824 units. The increase reflects a quarterly rise in the number of new listings in British Columbia and Ontario, Prince Edward Island, and Newfoundland & Labrador.
Nationally, the number of months of inventory was 4.9 months in September 2009. This is down slightly compared to August, and remains well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
Click here to view the complete artice from The Canadian Real Estate Association.
