Buyers should be aware of their options so they are better able to protect their positions in a transaction to get the best results. The role of the Realtor has been undergoing tremendous change over the past several years. Prior to 1995, all Realtors worked for the Seller in a Real Estate transaction. A buyer can now choose to retain representation with a Licensed Realtor and receive the same legal relationship that Sellers have received for nearly 100 years.
A buyer who understands their options will typically want to select their Real Estate representative EARLY in the transaction in order to avoid potential conflicts of interest should they be making many calls to various Realtors (typically listing sales representatives representing the Seller) or if shopping New Home sites (representatives are not necessarily Realtors – thereby having no accountability to the Buyer through RECO* or REBBA**).
With the advent of the Internet, many Buyers are conducting tremendous research on their own before looking at homes or contacting a Realtor. It cannot be understated that part of the research conducted from a buyer’s perspective, is the careful selection of the Realtor to represent their interests in the acquisition of property. A skilled Buyers sales representative will add tremendous value to the buyer during the drafting of the contract, during negotiations, and overseeing the contract to completion. If you’re going to spend the next 25 years paying for your new home… shouldn’t you spend at least few minutes finding the right person to help make it all happen?
Realtor know your rights … do you?
You have the right to remain silent
Anything you say while un-represented could be used against you during negotiations;
If you choose NOT to be represented - Then all Realtors will work on behalf of the Seller during negotiations.
You have the right to be REPRESENTED
If you choose TO BE REPRESENTED - Then yourRealtor will work on your behalf and in your best interest during negotiations.
To find out more, please feel free to contact Daniella Knezevic, MVA, Broker of Record, at 416-566-4616 or 416-261-9111, or book a complimentary private consultation to discuss your Real Estate Goals. My services are aimed to ensure your complete satisfaction!
Buying a home or investing in a real estate property is complex and serious process. When you decide to purchase a home or invest in real estate, make sure you hire someone whom you can trust and someone who has knowledge, experience and understands the market trends, and your needs.
Buying real estate property is one of the several most important purchases one can make, so make sure you have the right agent who can provide you with the experience, knowledge and the level of service you expect and deserve.
Daniella offer only the highest quality of service and use a cutting edge technology to find the right and the best property for her client's needs.
Daniella will guide you through current market conditions so you can understand the real estate market and take advantage of that knowledge. It helps to know if you are in a Seller's, Buyer's or Balanced market when making an offer to purchase or when you are involved in a bidding war.
Daniella can help you get Priority Access to Hot New Listings daily. Our clients receive priority access to ALL New Listings that match their home buying criteria. Our Exclusive Buyer Profile System can save you Time and Money. And, it is easy to use. No more wasted time looking at out-dated information in newspapers or on the internet.
Priority access means you can amongst the first to know of any new listing. That can give you advantage to find and buy the right property before somebody else take it, and negotiate the lowest possible price. It is important to concentrate on what you want to get and achieve, and not waste your time searching for or viewing homes that don't interest you.
Here are some of the steps Daniella will take when working with you:
We need to Determine What You Want and Need!
This is the very first and the most important step. By asking you a series of questions Daniella will establish what are your needs and wants. Daniella is dedicated to giving trustworthy and professional advice on Real Estate transactions. She is honest and respect your privacy.
It is important for you to know how much money you need to make the deal you want! It is also wise to secure the rate (if the rates are expected to go up), by getting timely mortgage pre-approval. Daniella know great mortgage brokers and lenders who will do their best to help you get the most competitive rates in the market and will ensure they contact you as soon as you are ready for the move. There are many different lenders, and they want your business. Daniella will make sure you get the professional guidance and help in choosing the best, most appropriate and beneficial mortgage rates and terms. If you are looking for Zero Dowpayment, Money Back, Cash Rebate or no CMHC Fee Mortgage, can be arranged and negotiated for you. You get to choose the best deal based on your specific needs and circumstances.
There are many other important details to consider like: Bi-weekly or weekly mortgage payments; Paying extra amounts on your mortgage; Eliminating or Reducing the CMHC fees; Advantages of Bigger Down Payments; Mortgage Amortization Options, etc... I can help you with those and many other important buying related issues.
Visit our CALCULATOR. Click on the link here:
Home Shopping & Buying
I use modern and leading edge technology to locate and research the property that matches your search parameters. I take pride in researching all important information, and will disclose all known facts about the property of your choice, that are likely to affect your decision and are known to me (including the listing and sales history and all comparables). When you choose the property that meets your criteria and needs, I will ensure that the Offer we make includes all important details and clauses to protect you and your interests. I will do the most to negotiate the best possible price and deal for you, and make the purchase smooth and satisfactory.
We have a great team of proven professionals that can help you and work with you during your purchase - like: mortgage brokers, home inspectors, solicitors, contractors, etc..... and they are eager to the outstanding job for you.
Home Buying Tips
- Get preapproved for your mortgage prior to making an offer.
- Location, location, location – some things don't change much.
- If you have to resell soon, don’t buy an unusual house.
- Most ofthen it's best to buy the best home you can afford in the best neighborhood you can afford. You are almost always better off with the least expensive home in the area rather than the most expensive.
- Even if the quality of the school district doesn’t matter to you now, it might someday to another buyer.
- Brand new homes may be lower in maintenance costs, but can be higher in out of pocket expenses.
- There are no perfect homes. Be ready to make compromises and concessions. Know what’s most important to you and cut on those things that aren’t.
- Supply and demand is a critical issue in busy market. Be ready to move quickly when you find what you want.
- Pay attention to floor plans. Changing layouts of rooms can be costly.
- Be an educated buyer. Learn as much as you can about the market.
- Compare mortgages – an artificially low interest rate could have enormous hidden costs.
- When interest rates are low – you may want to choose fixed rate mortgage.
- Redoing kitchens and baths can be expensive – check these out carefully.
- Imagine the home vacant. Do not be put off by decorating or clutter – the furnishings & clutter will leave with the seller.
- Vacant homes appear larger than they are. It may be a good idea to measure to make sure your furnishings are going to fit.
- Pay attention to the original listing date of the properties you look at; sellers tend to be more flexible with price negotiations the longer the home is on the market.
- Be honest and open with your own Realtor. She works for you and can best help you if she has a good understanding of your needs.
- You’ll know the right home for you when you see it and it will have very little to do with logic. Your Realtor job is to be an objective medium in the process, to ensure your needs and interests are met and protected, and the price you choose to pay is justified by present market conditions.
OTHER COMMON ACTIONS, STEPS & COSTS ASSOCIATED WITH REAL ESTATE PURCHASE:
DEPOSIT with the Offer (Often approx 5% of the Purchase Price. Not set, could be more or less). Deposit paid with the Offer becomes part of the purchase price on closing.
HOME INSPECTION (Optional, but Recommended)
LAWYER for Purchase and/or Sale (Include Title Insurance - Optional but Highly Recommended)
PROPERTY - FIRE INSURANCE for Freehold Properties, and Content/Third Party Liability for Condominium Properties (Often Required when Mortgage Financing is Involved)
Life/Mortgage Insurance (Optional, But Recommended)
Renovation, Upgrades, and/or Repairs
Utilities Transfer, Address Change for Post, Services, & Documents...
Tips for FIRST HOME BUYERS:
Both the government of Canada and the Ontario government have established programs to assist first time home buyers such as: RRSP HOME BUYER'S PLAN, the MUNICIPAL LAND TRANSFER TAX REFUND, the PROVINCIAL LAND TRANSFER TAX REBATE, and the FIRST TIME HOMEBUYERS TAX CREDIT.
RRSP HOME BUYER'S PLAN The RRSP Home Buyer's Plan (HBP) was introduced by the federal government, and allows first time home buyers to withdraw up to $25,000 from their RRSPs tax free to use towards the purchase of a home. To qualify as a first time home buyer, purchaser must not have lived in a home owned by himself or his spouse in the last five years. If both you and your spouse qualify under the Plan, you can each withdraw up to $25,000 from your RRSPs for a total of $50,000.
Before you are entitled to withdraw the money from your RRSP, you must have entered into a written agreement to purchase or build a home that you intend to occupy as your principal residence. The purchase of a cottage, for example, would not qualify for this program because it is not a principal residence.
Money can be withdrawn from your RRSP provided it has been in your RRSP for at least 90 days. If you have signed an Agreement of Purchase and Sale and you have at least 90 days until your closing, you can open an RRSP and make a contribution, receive the tax deferred benefit and then withdraw the same money and put it towards the purchase of your home.
Your first repayment is due the second year following the year in which you made your withdrawals. You have up to 15 years to repay the amount that you withdrew under the HBP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew until the full amount is repaid to your RRSPs. If you do not pay the full amount back to your RRSP within 15 years, the amount outstanding will be subject to tax when you file your income tax return in the following year.
What if you don't have any money in your RRSP?
Do not worry, you can still take advantage of the Home Buyers Plan (HBP). If you are earning income, or have earned income in the past few years, you are entitled to contribute to an RRSP. What is not very well known about the HBP is that you can contribute to an RRSP retroactive. Therefore, check to see what your RRSP contribution limit is. It is shown on your previous years Notice of Assessment, or call Revenue Canada.
If you need help raising a downpayment, the HBP may be of some use to you. If there are significant unused contributions from previous years, take out a short-term RRSP loan to cover them. After 90 days, you repay your loan by cashing in your RRSP and you use your tax refund for the downpayment on your new home.
A tax refund is an acceptable downpayment if it is in hand at the time of closing. For general information about Registered Retirement Savings Plans (RRSP), visit the website of Canada Customs and Revenue Agency.
PROVINCIAL LAND TRANSFER TAX REFUND: First-time homebuyers of resale homes may receive a refund from the provincial government of up to $2,000 of the land transfer tax paid. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund. Qualifying purchasers must apply for the refund no later than 18 months after registration of the home if they do not receive the refund at the time of registration. The requirements are as follows:
1. The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
2. If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.
3. The purchaser must be at least 18 years of age.
4. The application for a refund must be made within 18 months after the date on which the conveyance or disposition occurred. (Note that an application for the refund can be completed upon the electronic registration of the conveyance).
5. The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
6. The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP) based refund of land transfer tax.
7. If the agreement of purchase and sale is entered into before December 14, 2007, the home must be newly constructed.
For further information refer to Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds For First-time Homebuyers.
If you require additional assistance, please contact the Ministry of Revenue, Land and Resource Taxes section at 1 866 ONT-TAXS (1 866 668-8297). For information about the refund, visit the website of the Ontario Ministry of Finance.
MUNICIPAL LAND TRANSFER REFUND Tronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. You may be eligible for a rebate of the MLTT if you are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00. If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview version 6.0 software when he/she registers your transfer/deed.
The MLTT will be charged on a graduated basis depending on the value of consideration paid for the property.
|For property containing at least one, and not more than two, single family residences with a consideration value of:
|Up to and including $55,000.00
|$55,000.01 to $400,000.00
FOR EXAMPLE: A home with a consideration value of $500,000.01 (excluding GST):
For all other property with a consideration value: Value of Consideration
|Up to and including $55,000.00
|$55,000.01 to $400,000.00
|$400,000.01 to $40,000,000.00
|0 to $55,000.00
||55,000.00 x 0.005 = $275.00
|$55,000.01 to $400,000.00
||$344,999.99 x 0.01= $3,450.00
|$400,000.01 to $500,000.00
||$99,999.99 x 0.02= $2,000.00
|Total MLTT= $5,725.00
For information about the refund visit the City of Toronto web site.
HOME BUYER'S TAX CREDIT You will qualify for the HBTC if:
1. you or your spouse or common-law partner acquire a qualifying home; and
2. you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
For more information, go to www.cra.gc.ca/hbtc or call 1-800-959-8281.
New HST came into effect on July 1, 2010:
1. HST does NOT apply on the purchase price of re-sale homes.
2. But, HST DOES apply to services such as moving cost, legal fees, home inspection fees, appraisal fees, labor for renovations, landscaping and REALTOR® commissions if applicable. It is estimated the average home buyer will likely pay $1200 - $1500 additional cost in HST fees when moving.
3. HST applies to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. (so that's basically a savings up to the first $24,000 hst). For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
Transitional Rules for New Housing if your purchased before July 1st and your home has not yet closed:
Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.
Is there HST on Rent?
If you are currently renting a house, condo or townhouse on a long term bases (or month to month) you are currently not paying GST, therefore, HST will not apply. However, expect that the Landlord will have increased costs for the goods and services he uses, such as labor for repairs, landscaping etc. With increased costs to the owner, increases in rental rates in the future might be expected.
Is there HST on Condominium Maintenance Fees?
Currently there is no GST charged by Condominium Associations. But as the HST takes effect, many services associated with the common maintenance of the building will be subject to HST. It makes common sense to expect some adjustments in the future monthly fees.
Is there HST on Commercial Rents:
GST and Commercial GST applies to most of the rentals of commercial real estate properties with limited exceptions. Therefore expect HST to apply.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.
If you have more Questions about the HST, additional details on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222. The HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
GOVERNMENT LAND TRANSFER TAX REBATES FOR FIRST TIME BUYERS
Ontario's Land Transfer Tax:
Up to $55,000 X 0.5 % of total property value
From $55,000 to $250,000 X 1 % of total property value, less $275
From $250,000 to $400,000 X 1.5 % of total property value, less $1525
From $400,000 up X 2 % of total property value, less $ 3525
Additional Toronto Land Transfer Tax: - Toronto home buyers pay additional new tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008)
0.5% on first $55,000,
1% on next $345,000, and
2% on portion over $400,000
Exemptions from land transfer tax are limited. The main exemptions include:
- certain transfers between spouses
- certain transfers from an individual to their family business corporation
- certain transfers of farmed land between family members
- 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 with the land registry office.
Exemption: First time buyer do not pay the new tax on the first $400,000 of a property purchase.
For more information about exemptions and deferral of land transfer tax, refer to list of land transfer tax bulletins.
LAND TRANSFER TAX REBATE (For First-time Home Buyers)
Land transfer Tax rebate is a permanent program allowing a rebate of provincial land transfer tax otherwise payable up to $2000 for all agreement of purchase and sale entered into after March 31, 1999 (being the land transfer tax on a $227,500 home, using above calculation). As of Dec 14, 2007, resale home buyers are eligible for the Land Transfer Tax Rebate.
1. PROVINCIAL LAND TRANSFER TAX REBATE
First-time buyers of BOTH Re-sale, and Newly constructed homes and condos, will be eligible for a rebate of the provincial land transfer tax of up to $2,000.
The provincial land transfer tax rebate applies in all Ontario municipalities. In The City of Toronto only, the provincial rebate is in addition to City rebates of the Toronto Land Transfer Tax. Other Municipalities have only Provincial Land Transfer Tax.
More Information: Ministry of Finance Land Transfer Tax Section 905-433-6361 or General Inquiry 1-800-263-7965
2. TORONTO LAND TRANSFER TAX REBATES
First-time home buyers (for both new and resale properties) who are eligible for a FULL Toronto LTT rebate (up to $3,725 - those purchasing homes up to $400,000) of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later).
First-time home buyers paying the tax above $3,725 (those purchasing homes above $400,000) will be required to pay the balance of the Toronto land transfer tax above $3,725 after the spring of 2008 when all changes should be made to Teranet’s collection system.
Prior to the spring of 2008, they were required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City.
More Information: City of Toronto at 416-338-4829
Buyers should consult with their lawyers if they have concerns.
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