fbpx

HOMEPORTAL

Menu

homebuyer

How Your Home Warranty Can Help You in an Emergency

Blogs / / / , , , , , ,

How Your Home Warranty Can Help You in an Emergency The last thing you want to face when moving into a new home or condominium is an emergency, such as a total loss of heat or an extensive plumbing leak. After all, everything in the house is spanking new, including the principal systems and materials, and the house was examined at various phases of construction. Even yet, situations do occur from time to time. Fortunately, your Tarion-managed new home warranty covers situations that can be traced directly to your builder’s labor and supplies. What is an emergency? According to Ontario’s new home warranty, an emergency happens within the warranty term and includes a guaranteed fault that, if not addressed quickly, will cause significant damage to your house, condominium unit, or standard condominium features. An emergency might also endangers your health and safety or renders your house uninhabitable. Examples of typical emergencies that may be covered under warranty include: complete loss of heat between September 15 and May 15 complete loss of electricity a gas leak complete loss of water complete stoppage of sewage disposal; a plumbing leak that necessitates shutting off the entire water supply a major collapse of any part of the home’s exterior or interior structure water penetration through the interior walls or ceiling a pool of standing water inside the home and/or the presence of unacceptable levels of hazardous substances. It should be noted that an emergency scenario over which the builder has no control, such as municipal or utility service breakdowns, is not covered by the builder’s guarantee. What should you do in an emergency? In the event of an emergency, you should contact your builder as soon as possible since you are responsible for handling the warranty procedure for your property. Afterward, your builder has up to 24 hours to handle the emergency problem by making your house safe and avoiding future damage. What if you can’t contact your builder or if they don’t handle the situation within 24 hours? That’s when you may contact Tarion for advice on handling the emergency scenario. Tarion has a dual function in this circumstance. First, they ensure homeowners get the warranty coverage to which they are entitled. Second, when builders fail to satisfy their duties, we hold them responsible. If you are unable to contact your builder or Tarion, you or a contractor you hire may do the required repairs to handle the immediate issue and then file a claim to be compensated for the expenditures. You must preserve records of the emergency and repair work done, save all receipts and take photos before and after the repairs. After dealing with the immediate emergency, your builder has 30 days to thoroughly remedy the fault. If they don’t, you may contact Tarion to address the issue. Nobody wants or anticipates an emergency to ruin their first house-buying experience. But, if they do occur, you can be certain that steps are in place to guarantee that you can quickly return to fully enjoying your new home. Related posts 10 July 2023 How Your Home Warranty Can Help You in an Emergency 02 July 2023 Four 2023 new home buyer facts that may surprise you Four 2023 new house buyer facts that may surprise you Tarion revealed the findings of its initial poll… 02 July 2023 3 “warranty exceptions” for warm weather 3 “warranty exceptions” for warm weather Your routines as a new homeowner will likely shift when the… 27 June 2023 Reuters survey predicts rising Canadian housing prices due to high demand Reuters survey predicts rising Canadian housing prices due to high demand According to a Reuters survey… 21 June 2023 Canadian Real Estate Correction Continues, Sales Rise Temporarily: Oxford Econ. Recent Immigrants Cannot Support High Home Prices in Canada After a temporary lull, the real estate market… 24 May 2023 Recent Immigrants Cannot Support High Home Prices in Canada Recent Immigrants Cannot Support High Home Prices in Canada Canada’s population growth is contributing… 16 May 2023 Toronto’s Best Investment Areas for Families Toronto’s Best Investment Areas for Families Don’t be fooled by The Six’s huge towers, high-rises,…

How Your Home Warranty Can Help You in an Emergency Read More »

How To File A Warranty Claim And What You Can Anticipate

Blogs / / / , , , , , , , ,

How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population of small towns in Ontario’s rural areas. More and more people migrate there from the city’s crowded core. The pandemic has helped to speed up this migration, as telecommuting has already proven to be an effective business tactic. So, here’s some good news if you’re a “remote” worker in search of a brand-new house in a less crowded area. To start, you have a variety of options to consider. Numerous new residences are being built in little villages away from major cities. Second, your builder is almost certainly going to include a Tarion-backed warranty in the sale price of your home. This is a summary of what you should expect from warranty claim: Your deposited money is secure Your deposit on a new freehold house or condominium unit in Ontario is secured when you sign a cheque for the full purchase price. The amount of your security deposit returned to you when you sell a freehold property is directly related to how much money the property sells for. If the property is selling for less than $600,000, your deposit is fully covered up to $60,000. If the price is higher, your deposit is protected at a rate of 10 percent, up to a maximum of $100,000. The concept of security deposits in condominiums is slightly different. Your security deposit is held in trust in accordance with the Condominium Act and will be completely safe. The new home warranty plan provides you with an additional $20,000 in coverage. Compensation for delays is possible In either case, you and the builder would prefer that the closing date not be pushed back. However, delays sometimes occur for good reason. If your builder follows the proper processes, they may be able to delay your completion or occupancy date. This is done according to the provisions of your purchase agreement. However, if they don’t, you could be eligible for compensation for the delay. The maximum amount that can be claimed under the warranty is $7,500, with daily compensation set at $150. This sum is meant to assist with any unforeseen costs, such as higher rent or food, that may arise as a result of the hold up. You can file a claim for delay compensation to help pay the costs of things like short-term housing rentals and storage facilities. Defects can be covered by warranty for up to seven years Upon moving into your new residence or assuming occupation of your new condo, the duration of this guarantee will begin. There are three distinct phases of protection. All violations of the Ontario Building Code (OBC) and unlawful substitutions of goods your builder agreed to deliver are covered in addition to any flaws in workmanship or materials in the first year. If your bathroom exhausts into the attic, for instance, you are breaking the OBC. Unauthorized substitutions include situations like when a builder installs cheaper materials like laminate countertops when you specifically requested granite. The builder could be contacted for a warranty claim in any scenario. Your two-year warranty protects you from problems. These include your home’s plumbing, heating, air conditioning, and electrical systems. Moreover, it includes OBC’s health and safety violations, cladding faults, and water seepage in the basement or elsewhere. The third type of protection is up to seven years of security against significant structural faults. Any problem that compromises the safety of the building’s structure or restricts the functionality of a sizable component of the dwelling is considered a substantial structural issue. Possible causes include foundation movement, severe cracking of basement walls, and the growth of deadly mould. Related posts 28 January 2023 How To File A Warranty Claim And What You Can Anticipate 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after…

How To File A Warranty Claim And What You Can Anticipate Read More »

Three Improved Ways to Understand Your Warranty

Blogs / / / , , , , , , , ,

Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be a thrilling adventure. In addition, it may be quite lengthy. Your move-in date may be months or even years away from the time you sign the purchase agreement. The Ontario New House Warranty Program affords you certain guarantees as a buyer of a newly constructed home in the province. This protection lasts for a good long while as well, spanning both the time before you take possession (for things like deposits and improper delays). Moreover, the seven years after you take possession (for things like defects). While it’s important that you know what’s going on with your warranty, it’s understandable that you can’t focus on it 100% of the time. We hear you, and we know that you’d rather not be inundated with data. This is why we have included a variety of resources for education. These may be accessed at any point in the process of purchasing a new house. The following are some brand new resources that will be useful to anyone. They include individual who is either in the market for a new house or who has recently purchased one: Updated Brochures for Print and Web The pamphlet we offer, “Warranty Coverage for New Homes in Ontario,” has always been a best-seller. The new and improved version is even better. The Freehold Brochure, now revised and enlarged, is the best way to learn about the new home warranty. New information is included, such as the responsibilities of the homeowner, builder, and Tarion. Data Sheets Regarding Warranties Buyers of new houses and condos will see a change on February 1, 2021, when they get ready to sign the contract. This is because from now on, every new home purchase agreement and construction contract must include a Warranty Information Sheet signed off on by both the builder and the vendor. Depending on the home being sold, the Warranty Information Sheet may include a brief summary of the warranty coverage (such as deposit protection and compensation for closing delays). It emphasize the significance of the pre-delivery inspection, and point new homebuyers in the direction of additional resources. Buyers will be fully informed of the coverage to which they are entitled at the time of purchase thanks to the Warranty Information Sheet. Related posts 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current…

Three Improved Ways to Understand Your Warranty Read More »

Can I Have A New Home Warranty Even If It’s Not New?

Blogs / / / , , , , , , , ,

Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently? A new home warranty may still be in effect if the home is less than seven years old. For the most part, Ontario’s new construction warranties cover a period of seven years. A fact that you might not know is that a home warranty is transferred to the property rather than the owner.  It is likely that the purchase of a resale home less than seven years old will include a warranty The terms of the new home warranty cover whoever owns the home for seven years after the original date of possession. However, assuming ownership of a resold property isn’t enough to transfer the warranty coverage. If you’ve just purchased a previously owned house, it’s imperative that you contact Tarion as soon as possible to let us know you’ve taken ownership. Tips for registering a house warranty on a previously owned property It’s important to have both the purchase agreement and the deed on hand. Please provide us with a copy of these papers so we can update our records. Once we have finished making the necessary changes to our system, we will send you an email confirming the alteration, along with your enrollment number and a link to MyHome. Here at MyHome, you can easily maintain tabs on your submitted paperwork and the remaining time on your house warranty. This tool can also be used to complete and submit any warranties that may apply to you. No company will  provide extensive warranty details over the phone prior to delivery, since this would violate their customers’ privacy. Once you’ve registered as the new owner in the system, the concerned company and individual will be able to inform you whether or not the home is protected by the warranty. Moreover, it would determine whether or not it’s enrolled with Tarion. Suggestions for ensuring that you take full advantage of any applicable warranty terms and conditions Closing dates that fall after the warranty form submission deadline can be a problem for homeowners. Is there anything you can do to remedy the situation? Know what your warranty covers before you start negotiating with the seller. Assist them with the necessary paperwork to make sure they don’t miss the submission date. While the seller’s priority may be getting out of the house and onto the next chapter of their lives, yours should be learning about the warranty protections you’ve earned. You should be conscientious and cooperative with the vendor in order to ensure that the warranty documents are submitted on time. Not submitting the paperwork in a timely manner could cause critical deadlines to be missed. Visit Tarion’s Learning Hub to find out crucial information regarding home warranty coverage and deadlines. A home buyer’s best bet is to find out about the property’s warranty terms before making a purchase. How to know the time that is remaining on the warranty? It is advised to consult with either a real estate agent or an attorney. They can inquire directly with the seller or contact us on their behalf to get warranty details such as the date coverage began, the name of the home’s builder, and whether or not the home has been occupied. Related posts 28 January 2023 Three Improved Ways to Understand Your Warranty 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current…

Can I Have A New Home Warranty Even If It’s Not New? Read More »

Process of warranty claim and what to expect?

Blogs / / / , , , , , , , , , ,

Process of warranty claim and what to expect? Everything about your new house would be wonderful if you could just move in. It’s possible that you’ll discover anything that needs fixing, finishing, or installing after your builder has left. However it is important to ensure that builders meet minimal customer service requirements when addressing warranty repairs or issues with newly constructed homes. Submission of a Warranty Claim Submitting a warranty form initiates the warranty claim procedure. To ensure timely processing of your warranty claim, please submit all required paperwork after closing on your new home. When you file a warranty claim, Tarion and the builder are made aware of your concerns, and Tarion can step in to mediate any disputes about the guarantee, if necessary. Be as detailed as possible when describing the type and location of the issue on the warranty form. Photos, movies, and other visual evidence might be helpful as well. How and when to fill out a warranty form? If you have a warranty claim, please fill out one of these forms and submit it to Tarion: 30-Day Form: A 30-Day Form must be submitted within the first 30 days of ownership. Fill out this form to inform your builder of any issues that have emerged since you took possession of your house that were not addressed during your pre-delivery inspection. If you want to report multiple issues under warranty, please submit separate 30-Day Forms for each. Year-End Form: A Year-End Form must be submitted during the final 30 days of the first year of ownership. Please use this form to document any current warranty issues. Remember that the one-year guarantee is the most thorough, and that this is your last chance to notify Tarion of problems with things that fall under that warranty. You may lose warranty coverage for some purchases if you miss the deadline for submitting your Year-End Form. There is only one Year-End Form that will be approved. Second-Year Form: Anytime during the second year of ownership is acceptable to file a Second-Year Form. This form should be used to document any defects that fall under the two-year guarantee. In this window, you may submit as many Second-Year Forms as you feel is necessary. Major Structural Defect Form: Anytime after the second year of possession and before the seventh year from the date of possession is acceptable for filing a Major Structural Defect Form. Please fill out this form to report any severe structural defects that fall under the seven-year warranty. It is acceptable to submit several Major Structural Defect Reports. Once a warranty form is submitted, what happens? If you submit your warranty form within the allotted time frame, your builder has 120 days to address any covered issues. You have 30 days from the conclusion of the original repair period to contact Tarion and request a conciliation if your builder hasn’t repaired or otherwise resolved warranted items. This is true regardless of which warranty form you’ve filled out and submitted (30-day, Year-End, 2-year, or Major Structural Defect). After receiving your warranty form, Tarion will evaluate any disputed or missing items and let you know if they are covered or not through the conciliation procedure. Conciliation usually entails an unbiased representative from Tarion coming to your home to conduct an inspection. When a conciliation is requested, the builder is given an additional 30 days to address the issues listed on the warranty form. Your builder will need access to your home during the designated repair periods, during which you are responsible for granting them access to make any repairs and working with them to resolve any issues that may arise. There is a deadline for requesting a conciliation, after which the elements on your form will be removed and Tarion will no longer be able to help you. The Mediation Process for Warranty Claims Tarion will conduct the conciliation to determine if the items on your form are covered by the warranty. This happens if the builder does not settle them within 30 days of your conciliation request. The Tarion inspector will also review the paperwork you and the builder submit after the home inspection. Following the conciliation, Tarion will provide you and your builder with a written report detailing their findings. If Tarion determines a problem exists with a warranted item, the builder has 30 days to address the issue. Related posts 26 January 2023 Process of warranty claim and what to expect? 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current… 19 January 2023 Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules More stringent rules on mortgage borrowing… 16 January 2023 Reasons a robust labour market could affect your mortgage interest rate Reasons a robust labour market could affect your mortgage interest rate Over the past year, Canada’s… 13 January 2023 Is it necessary to pay Toronto’s new vacant home tax? Is it necessary to pay Toronto’s new vacant home tax? The new Vacant Home Tax in the City of Toronto…

Process of warranty claim and what to expect? Read More »

Reasons a robust labour market could affect your mortgage interest rate

Blogs / / / , , , , , , , ,

Reasons a robust labour market could affect your mortgage interest rate Over the past year, Canada’s job market has been red hot thanks to the country’s booming economy and the easing of pandemic lockdowns. Statistics Canada’s most recent data confirms this trend. In December, the national employment rate rose by 0.5% from November (representing an increase of 104,000 positions). Thus,+ totaling 3.7% growth over the course of 2022. ( a total of 701,000 new hires). So, the jobless rate fell 0.1% to 5%, surpassing the 4.9% recorded in June and July of last year for the first time ever. This metric reached its highest point since 1976 in May 2020. Thus reflecting how much employment has improved since the earliest days of the pandemic. While it’s great that there are so many job opportunities, rising inflation and interest rates might make life difficult for Canadians. This is especially for people who are already stretching their budgets to the limit. That’s because the Bank of Canada, the country’s central bank, wants to see economic activity cool before it can stop raising interest rates. A hot month for hiring isn’t helping the cause of keeping inflation in check. Economists expect an increase in interest rates Economists are predicting that the Bank of Canada will raise interest rates by 0.25 percentage points on January 25. This is in response to this recent data and last month’s stronger-than-expected inflation report. The Overnight Lending Rate, the benchmark against which other interest rates are measured, would rise to 4.5 percent. If this happened, marking its highest point since July 2007. Desjardins Economics Principal Economist Marc Desormeaux writes in a research note that the December jobs report does “tilt the odds in favour of one final 25 [basis point] rate hike from the Bank of Canada later this month.” Further highlighting the fact that it was the seventh consecutive month in which gains in hourly earnings for permanent employees exceeded 5%. Despite other economic indicators showing signals of slowing growth, the apparent strength in hiring likely means the central bank’s job isn’t done yet, he says. The governor has been stressing the importance of rebalancing the labour market for inflation normalisation in recent months. In a speech given in November, Bank of Canada Governor Tiff Macklem attributed the country’s high inflation rate to the historically low unemployment rate. Desormeaux is alluding to this speech. Macklem said at the time to a crowd at Toronto Metropolitan University. He said that the inability of business owners to find and keep enough workers was a symptom of the general imbalance. This imbalance is between demand and supply that was fueling inflation and hurting all Canadians. Why does Canada’s central bank have to cut inflation rates? Similarly to the labour market, inflation picked up speed when the economy was opened back up. Geopolitical issues, such as the crisis in Ukraine, have put increased pressure on the oil and gas sector. Moreover, snarls in global supply chain operations have contributed to shortages of many of the items Canadians use. As a result, shoppers have felt the pinch at the supermarket and the gas station. However, “shelter prices,” which do include mortgage interest payments, are included in the “basket of goods.” Based on this the CPI is calculated. Mortgage interest rates increased by 14.5% in November. Thus contributing to a 7.2% annual increase in this metric. The 11.4% gain in October was the highest monthly increase since February 1983. As a result of these factors, the Bank of Canada reported inflation of 6.8% in November, which is much higher than the target range of 2%. The Overnight Lending Rate is raised by the central bank if inflation rises over the target level. Variable mortgage rates and other variable-based lending products, such as home equity lines of credit, are directly affected by this. Bank of canada increases the rate A rise in interest rates has the effect of discouraging expenditure by both households and businesses. This in turn reduces overall inflation. Since March of last year, the Bank of Canada has increased its rate seven times, from 0.25% to its current level of 4.25%. It’s the quickest rate of increase recorded since the mid-1990s and the highest level at which this trend-setting rate has been since December 2007. The best five-year variable mortgage rate today is 5.35%, up from a record low of 0.85% in January of last year. The direction of the Bank of Canada’s monetary policy has an indirect effect on fixed mortgage rates. This is because of how the bond market reacts to it. For example, bond yields have been steadily rising throughout 2022. This has pushed the best five-year fixed mortgage rates up into the 4.5% range from the 2.34% range in January. After reaching a 40-year high of 8.1% in June, inflation has dropped thanks to the Bank’s proactive approach to rates. However, the progress has been sluggish. The prospect of a rate cut remains further off as long as economic data keeps surprising to the upside. Conclusion If the Bank of Canada were to raise interest rates by another 0.25 percentage points by the month’s conclusion, the national borrowing rate would reach 4.5 percent. Borrowers should prepare their finances for the highest rates in 16 years. As this will be the most expensive time to borrow since July 2007. Five-year insured variable rates are now at 4%, but should rates rise again. The borrowers may expect to see those rates rise to the 5.6-6.7% area. Connecting with a mortgage broker who can clarify your alternatives and provide individualised guidance is essential. Related posts 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current… 19 January 2023 Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules More stringent rules on mortgage borrowing… 16 January 2023 Reasons a robust labour market could affect your mortgage interest rate Reasons a robust labour

Reasons a robust labour market could affect your mortgage interest rate Read More »

Essential facts about mortgage

Blogs / / / , , , , , , , , , ,

Essential facts about mortgage A mortgage, at its most basic, is a debt taken out to finance the purchase of real estate. A mortgage, like any other loan, has parameters such as an interest rate and an amortisation (payment) schedule. Mortgages are secured by the collateral of the home itself. This means that the mortgage lender has the right to take back the home if the mortgage holder defaults on payments. It is important to understand the following ideas before applying for a mortgage. That will help you receive the best mortgage possible: Term- During the term of your mortgage agreement, you are obligated to make monthly mortgage payments. Rental periods might be as short as six months or as long as five years. Rate of interest- the cost of carrying a mortgage. A portion of each monthly mortgage payment goes toward reducing the loan’s principle balance, while the rest covers interest accrued. Open or closed mortgage- How much leeway you have in determining when and how much of your mortgage payment you make each month determines whether your mortgage is open or closed. You’ll need an open mortgage if you ever want to modify the loan in any way, including renegotiation, refinancing, or repayment. A closed mortgage will limit your options. But the interest rate is usually lower on these types of loans. Mortgage amortization- It is the time it will take to pay off your loan in full. For mortgages, the standard amortisation time offered by the country’s major lenders in Canada is from five to twenty-five years, with a maximum of thirty years available with a twenty percent down payment. In most cases, borrowers will need to wait until the end of many mortgage periods before making the final payment. Fixed or variable mortgage- Mortgage interest can be either fixed (staying the same for the duration of the loan) or variable (changing periodically). Rates of interest on variable-rate loans can rise and fall in response to fluctuations in the market.is How long will it take to pay off your mortgage The length of your mortgage is different from the time it takes to pay it off. The length of time during which you make payments on your mortgage is known as its amortisation period. With a 20% down payment, the standard amortisation length offered by most Canadian lenders is 25 years; with a larger down payment, this number can rise to 30 years. In general, the lower the amortisation term, the lower your interest payments will be over the life of your loan, but the larger your regular mortgage payments will be. should I go for the highest possible amount? For first-time buyers, it’s also vital to consider how much of a mortgage they can comfortably make each month. There are practical matters to think about in your house search regardless of the size of the loan you can afford. First and foremost is the reality that variable interest rates will almost certainly increase in 2022 due to a likely rate hike by the Bank of Canada sometime in the first quarter, maybe in April. The uptrend in fixed rates is expected to continue. Not only should you be aware of the growing rates, but you should also be aware of the fact that many experts advocate setting aside at least 10% of your gross pay for retirement (and some even propose as much as 30%). When borrowing money, it’s best not to borrow more than you can comfortably repay in a single payment. Mortgage affordability calculators can be helpful if you’re not sure how much house you can afford. You should always double-check the results of these tools with a broker who is familiar with the nuances of your financial situation, as they are only meant to provide estimates. How can I determine whether I need adaptability or stability? The choice between a fixed or variable interest rate, a longer or shorter term, a shorter or longer amortisation period, and a larger or smaller mortgage balance all comes down to personal preference and tolerance for risk. If you want to stay within your financial means and at the same time feel at ease, you need to be practical. And fortunately, you can rely on others to help you get the best mortgage for first-time buyers. A mortgage broker can help a first-time buyer get the best mortgage rate and lender for their situation by comparing products from numerous sources.

Essential facts about mortgage Read More »

First-time homebuyer Government incentives and tax credits

Blogs / / / , , , , , , , ,

First-time homebuyer Government incentives and tax credits First-time homebuyers can take advantage of a number of government programmes and tax credits. The Home Buyers’ Plan enables you to access up to $35,000 from your RRSPs ($70,000 for a couple) for a down payment on your first home. If you return the funds to your RRSP within 15 years, you won’t owe taxes or face a penalty. The First-Time Property Buyer Incentive provides a zero-interest loan of up to ten percent of the purchase price of a home to qualified first-time purchasers. After 25 years or upon the home’s sale—at the time’s fair market value—the government is entitled to repayment of its initial investment in the property. While the scheme has its advantages, mortgage broker Patton warns that it may restrict first-time buyers’ budgets. This is one of the main reasons why the federal government decided to prolong the programme through March 31, 2025, as part of the 2022 budget. Furthermore, the government has stated that “solutions are being explored to make the programme more flexible and sensitive to the needs of first-time home buyers, especially single-led households.” Canadians who have not been homeowners for four years or more are eligible for the Home Buyers’ Tax Credit. The maximum tax credit available to first-time homeowners is $5,000 (equivalent to a $750 refund). For properties purchased on or after January 1, 2022, the federal government proposed doubling the credit to $10,000 in its 2022 budget. Homebuyers could receive a refund of up to $1,500 as a result of the revised credit amount. FHSA, the pioneering first-time homebuyer savings account The federal government will introduce a new type of registered account in the 2022 budget to assist first-time homebuyers in saving for a down payment. Like a tax-free savings account (TFSA) or a registered retirement savings plan (RRSP), earnings on interest, dividends, and capital gains are not subject to taxation, and neither are contributions to or withdrawals from the account. No unused contribution space can be carried over from year to year, and first-time homebuyers are not eligible to use both the FHSA and the Home Buyers’ Plan. The maximum annual contribution for an individual is $8,000, with a lifetime maximum of $40,000. Any money left in an FHSA after 15 years must either be utilised to buy a home, moved to an RRSP or RRIF, or removed as taxable income. In 2023, FHSAs will become available thanks to the government’s collaboration with financial institutions. To qualified buyers, the governments of Ontario, British Columbia, and Prince Edward Island all give tax refunds on land transfers, and the city of Toronto does as well. The eligibility requirements and potential payout amount are territory-specific.

First-time homebuyer Government incentives and tax credits Read More »

What is the real cost of homeownership?

Blogs / / / , , , , , , , , , ,

What is the real cost of homeownership? Many people who are buying their first house may need to take out a loan. There are costs associated with completing a purchase. These expenses can add up quickly, so it’s crucial to include them. It is not uncommon for there to be additional, unseen costs on top of all the regular ones. Following is a detailed explanation of everything. First Investment Costs The initial outlay of cash you’ll need to buy a home is called a “down payment,” and we’ll talk about that first. Your down payment must be cash that you now possess or have access to (for example, savings, a gift, or RESP withdrawal) (RRSP). The minimum down payment required by the Canadian government varies with the home’s buying price. First-time buyers, according to Patton, typically have a lesser down payment than repeat buyers because they don’t have any accumulated equity in a previous house. If you’re a homeowner and your home appreciates in value, you can put that money toward a bigger deposit on another property. Mortgage loan insurance, also known as mortgage default insurance, is an extra expense that must be accounted for by buyers who put less than a 20% down payment on a home. hidden expenses of buying a house Look into some of the hidden expenses of buying a house. Transaction Fees There are a few last expenses that must be covered before you can take legal ownership of your new house and turn in the keys. Money paid out for legal services, property insurance, interest adjustment, and title insurance are all examples. Although there is no universally accepted benchmark, these expenses usually amount to between three and five per cent of the home’s purchase price. Land Taxes The assessed value is used to calculate your property tax. There is an annual deadline for these, but if you add the amount to your mortgage payment each month, the lender can handle the payment on your behalf. Prices associated with the upkeep Maintaining a home is an ongoing responsibility. It takes time and money to complete any project, no matter how large or small. Even if significant maintenance tasks like re-roofing or replacing windows and doors aren’t required very often, it’s still crucial to keep track of them so you’re not caught off guard by an unexpectedly high bill when they do come up. The Price of an Emerging Situation Having some savings set aside in case of an emergency is a prudent move. Keep this in mind while you look for a property, as older homes may require more maintenance than a recent one. Some of the emergency repairs you should be ready for include: roof repairs, tree removal, bathroom sink/toilet repairs, appliance replacement, and HVAC system repairs.

What is the real cost of homeownership? Read More »

What does pre-construction assignment sale mean?

Blogs / / / , , , , , , ,

What does pre-construction assignment sale mean? A pre-construction assignment sale occurs when a unit’s initial buyer sells their contract to a new bidder before the original buyer takes ownership of the property. Smith makes the choice to purchase a pre-construction property in Toronto. In light of the fact that neither the building nor the registration for it exists at the time of the signing of the Agreement of Purchase and Sale, what he is actually purchasing is the contract for his new home. Smith buys a one-bedroom condo in a new 25-story building that is still under construction. The project is expected to be finished in four years. The developer has included in the Agreement of Purchase and Sale that can sell or transfer the contract for the pre-construction one-bedroom flat to a new buyer before he is required to take possession. Smith meets the woman of his dreams during those four years, and the two of them go on to start a family. He suddenly realised that he doesn’t require the one-bedroom condo in the new condo complex. So, now what? He can also find a new buyer for his condo unit and transfer the contract to them before he moves in. A pre-construction assignment sale is exactly what it sounds like. Smith, the original buyer of the pre-construction contract, is selling it and will find a new buyer, Jane Doe, to buy it from him. All costs and legal obligations associated with the pre-construction one-bedroom condo previously described are now the responsibility of Jane Doe as the new owner. Smith and Jane Doe should consult a real estate agent and a lawyer who is experienced in real estate transactions to help them through the process. Now that the closing costs have been eliminated, Smith will save thousands of dollars, and may even be able to turn a profit on the sale. However, in order for this transaction to go through, Smith will need to pay a small fee back to the developer, as detailed in the Agreement of Purchase and Sale. And with that, Jane Doe has become the legal owner of the pre-construction condo unit of her dreams, a one-bedroom unit that has never been lived in before. More high-rise residential buildings have been built in tandem with the continued population growth in Toronto, the GTA, and the neighbouring municipalities Local real estate markets have been propelled by people buying properties in the pre-construction phase. Most prospective homebuyers are drawn to investment properties because of their lower prices and the chance of building equity before moving in.

What does pre-construction assignment sale mean? Read More »