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Non-Canadians can buy property more easily

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Non-Canadians can buy property more easily Certain limitations on foreigners buying residential property were loosened by the government mere months after the new laws went into effect. Residential property can now be purchased by non-Canadians with a work permit or legal authorization to work in Canada. To qualify, they must have at least 183 days remaining on their work permit or work authorisation and only buy one home. In June of 2022, Parliament approved the Ban on the Acquisition of Residential Property by Non-Canadians Act, which made it illegal for foreign nationals to buy homes in Canada. Starting at the beginning of this year, foreign nationals will be unable to purchase a primary residence in Canada due to a new rule. In response to soaring property prices, the Liberals promised these restraints during the 2021 federal election campaign. Any foreign worker legally authorised to work in Canada may now also buy a home in the country. Work permit holders must not already be homeowners and must have at least 183 days remaining on their permit at the time of purchase. For development purposes, non-Canadians and foreign enterprises can now buy residential property and unoccupied land zoned for residential or mixed-use. In its original form, the law exempted people with temporary work permits from having to work full-time or file tax returns for at least three of the prior four years. Some people at the time worried that the policy would “create hurdles” for immigrants to Canada because the exemptions were so narrow. But, with these revisions in place, requirements like tax returns and prior employment histories no longer apply. Minister of Diversity and Inclusion Ahmed Hussen made the announcement on Monday. The Canadian Mortgage and Housing Corporation (CMHC) issued a press release saying the new policies would be implemented immediately. With these changes, “newcomers will be able to put down roots in Canada through home ownership, and businesses will be able to generate jobs and build homes by increasing the housing supply in Canadian communities,” Hussen stated in a press statement. To prevent homes from being utilised as speculative investment by foreign investors, these changes “find the correct balance.” Modifications to the foreign control, threshold and purchase of vacant land Vacant land in residential and mixed-use zones will no longer be subject to the prohibition under the new regulations. This opens up the possibility of residential development on the land to non-Canadian buyers. Another exception is being established to enable overseas investors to purchase residential land for the construction of new homes. The changes make this exemption valid for Canadian publicly traded corporations created by foreigners who do not have majority voting rights. The federal government has proposed four adjustments, the last of which concerns raising the threshold for foreign control of a corporation. If a non-Canadian owns at least 10% of a corporation, the law currently considers it foreign-controlled. In the past, 3% was considered sufficient. The original three per cent criterion impeded home developers that foreigners partially owned, the Canadian Home Builders’ Association (CHBA) said in a press release issued in February. The new changes were called “extremely needed” by the CHBA in a separate press release released on March 28. Many Canadians still worry about whether or not they will be able to purchase a home, despite the fact that the national average price has declined since its peak nearly a year ago. According to a new survey by Mortgage Professionals Canada, an all-time high proportion of renters in the country are pessimistic about ever becoming homeowners. Some market analysts believe that the prohibition will increase Canadians’ access to housing by making the market less competitive for foreign buyers of residential homes. Yet, CMHC data collected in 2017 shows that foreign buyers only bought a small number of homes in different Canadian cities. In addition, the impact of the laws on Canada’s housing market has been met with conflicting opinions from real estate specialists. 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Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor

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Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor If you want your custom-built new home in Ontario to be covered by the province’s new home warranty programme, you must hire a contractor or builder registered with the province as a new home builder and seller. Do you plan to construct your ideal home in 2023? If so, you could have already begun seeking a contractor to help you realise your vision. It is important to protect yourself from things like construction flaws, scams, and more. Therefore, it’s crucial to familiarise yourself with the standards governing new house construction before you get too deep into the design phase. Included here is everything that your custom home builder must do. Beginning from the time they break ground to the time you move in. When interviewing potential builders for your project, it is important to take the time. Ensure to go over these points to ensure you are speaking with the correct person Get a registered builder and supplier of new houses The Home Construction Regulatory Authority is responsible for issuing licences to home builders and real estate agents in Ontario (HCRA). Your builder needs a licence before he can sign a contract with you. Checking a builder’s licencing status and warranty history is easy with the help of the Ontario Builder Directory. Tarion registration is a must All new homes in Ontario must, with rare exceptions, be registered with the Tarion warranty programme before construction can begin. Enrolling your home in a warranty programme gives you access to benefits. This include financial reimbursement for losses if your builder fails to deliver as promised before the home is finished. You can verify your home’s enrollment with Tarion through the HCRA’s Ontario Builder Directory as well. Have a legally binding contract drawn up, including any applicable warranties Your new home purchase agreement should contain a Warranty Information Sheet that summarises the coverage provided by the builder and any additional warranties you may purchase. Before signing any real estate transaction, it is wise to have it evaluated by an attorney Have a last walkthrough before the scheduled delivery date Pre-delivery inspections (or PDIs) are conducted before a home is officially handed over to the buyer. This is done to document any issues with the home’s condition prior to delivery, such as items that are missing, incomplete, damaged, or not functioning as they should. You can also get answers to your inquiries concerning the care and maintenance of household goods at this time. At this point, you should also receive a copy of your warranty certificate from your builder. Provide a warranty on the new construction After you accept ownership, you have seven years to make a claim on the builder’s workmanship and materials warranty. Coverage for items like code violations and major structural flaws is included. Your builder must promptly investigate and resolve any issues you bring to their attention that are covered by the warranty. The time, effort, and resources required to construct a bespoke home are substantial. Your chances of having a successful building project increase significantly if you are familiar with the regulations in advance and check to see that your builder is adhering to them. Related posts 07 March 2023 Three common components tips for new homeowners Three common components tips for new homeowners   The convenience of having a low-maintenance lifestyle… 01 March 2023 Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor If you want… 28 February 2023 Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s… 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and…

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Quick tips for first-time homebuyers

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Quick tips for first-time homebuyers How will someone know when it’s “the proper moment” to buy a house? maybe a question you have if you’ve been considering it. Is it still ok to think about buying if you don’t have a 20% down payment saved up? Like any major undertaking, the secret to a smooth home purchase is to pay attention to every last detail. You can navigate the procedure, save money, and complete the transaction with the aid of these first-time house purchase recommendations. Determine the cost of your home Before you start looking, determine how much you can afford to spend on a house. The house affordability calculator can assist you in determining a price range based on your income, debt, down payment, credit score, and the location of your intended residence. Examine and improve your credit If you are eligible for a mortgage, your credit score will help lenders decide what interest rate to give you. Generally speaking, a better score will result in a lower interest rate, so follow these recommendations to improve your credit score in order to purchase a home. Get free copies of your credit reports from Experian, Equifax, and TransUnion, the three credit bureaus, and challenge any errors that could lower your score. Maintain the lowest possible credit card balances while paying all of your bills on time. Keep your active credit cards active. Closing a card will increase the amount of credit you are already using, which could harm your credit score. Monitor your credit rating. Research for first-time home buyers programmes First-time home buyer programmes are available in many states, some cities, and counties, and frequently include low-interest mortgages, down payment help, and closing cost aid. Additionally, tax benefits are offered by several first-time home buyer programmes. Costs and rates of mortgages To compare costs, including interest rates and potential origination fees, the Consumer Financial Protection Bureau advises receiving loan estimates for the same type of mortgage from many lenders. Discount points, which the borrower pays up in advance to reduce the interest rate, may be available from lenders. If you have the cash on hand and intend to live in the house for a long time, buying points may make sense. To make your choice, use a discount point calculator. Get a letter of pre-approval An offer from a lender to lend you money up front and on particular terms is known as a mortgage preapproval. A pre-approval letter can provide you with an advantage over other home shoppers who haven’t taken this step yet by demonstrating to home sellers and real estate agents that you’re a serious buyer. When you’re ready to begin looking for a home, submit an application for preapproval. To confirm your income, assets, and debt, a lender will check your credit and look over your paperwork. If you apply for a preapproval from multiple lenders to compare rates, as long as you do it within a set time period, such as 30 days, it shouldn’t adversely affect your credit score.

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First-time homebuyer Government incentives and tax credits

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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.

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What is the real cost of homeownership?

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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.

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