​

The first question is bound to be, “How much home can I afford?” That depends on a number of factors: 

Your selected location. Are you set on a specific area? Downtown? The suburbs? A rural setting? 

Your preferred type of home. Detached? Semi? Duplex? High-rise? Link? Townhouse? New or Resale? There are a variety of home styles you will want to explore. 

Your income. After all, it's not just the mortgage you have to take into account. There are property taxes, utilities, and in some cases condo or strata fees. As a general rule of thumb, your monthly home-carrying cost should not exceed 30-35% of your income. 

Market conditions. Is it a buyer's, sellers or balanced market? 

There are also additional costs to keep in mind. It's a good idea to work out exactly what you want and what you can afford before you begin the search. Be specific! After all, you don't want to suddenly come to the realization that your dream house has come with a nightmare of bills and expenses. Stick to looking at houses in your price range. The more you've thought it out, the better your sales representative can meet your needs. 

A part of deciding just what you can afford can be accomplished by meeting with your bank or a mortgage broker and negotiating a pre-approved mortgage. There are many types of mortgages and many different terms. Research all of your options. This ensures that there are no surprises once you're ready to make an offer. 

Once you've figured out your monthly expenses and what you can afford, you can start your search. It could happen that the first home you see is the one you want; or you might look at home after home with none of them catching your interest. Rest assured, the home you're looking for is out there, and when you find it, you're ready to make an offer. If your offer is accepted, the next steps are closing and moving into your new home. 

Purchasing a home is easy once you put your plans into action.
 

Land Transfer Tax

Buyers in most areas will have to add Land Transfer Taxes to their closing costs. 

These taxes which are levied on properties that are changing hands, are the responsibility of the buyer. Ontario taxes can range from 0.5% to 2.5% of the total purchase price of the property. 

This multi-tiered taxation system can sometimes be difficult to understand. For example, if you buy a property for $500,000 in Ontario, .5 per cent is charged on the first $55,000, 1 per cent is charged on the portion from $55,000 - $250,000, then the amount from $250,000 - $400,000 range is taxed at 1.5 per cent and lastly $400,000 - $2,000,000 is taxed at a rate of 2%. In this example your total provincial tax bill would be $6,475.00. 
 

Ontario

Effective January 1, 2017, the following are the Provincial rates for land transfer tax:
 

• Amounts up to and including $55,000: 0.5%

• Amounts exceeding $55,000, up to and including $250,000: 1.0%

• Amounts exceeding $250,000, up to and including $400,000: 1.5%

• Amounts exceeding $400,000, up to and including $2,000,000: 2.0%

• Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.

First-time homebuyers may be eligible for a refund of all or part of the Provincial tax. To see if you qualify please visit Ontario’s Rebate Program.
 

Buying a Property in Toronto?

If you are purchasing a home in Toronto, there is an additional municipal land transfer tax. Toronto's land transfer tax applies to properties purchased within the following boundaries: Steeles Avenue as the North border, Etobicoke as the West border, Scarborough as the East border and Lake Ontario as the South border. 

The following Tax Rates apply to properties purchased in Toronto with a closing on or after March 1, 2017 
 

• Amounts up to and including $55,000: 0.5%

• Amounts exceeding $55,000, up to and including $250,000: 1.0%

• Amounts exceeding $250,000, up to and including $400,000: 1.5%

• Amounts exceeding $400,000, up to and including $2,000,000: 2.0%

• Amounts exceeding $2,000,000, where the land contains one or two single family residences: 2.5%.

First-time homebuyers may be eligible for a refund of all or part of the Toronto tax. To see if you qualify please visit Toronto Rebate Opportunities