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Unlocking Your RRSP: The Home Buyers Plan Explained

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Unlocking Your RRSP: The Home Buyer’s Plan Explained In order to purchase or construct a qualified house for yourself or a relative with a handicap, you may make a withdrawal from your Registered Retirement Savings Plan (RRSP) under the house Buyers’ Plan (HBP). Withdrawals from the HBP must be repaid within 15 years. If you are the owner of more than one RRSP, you may make withdrawals from any or all of them. Up to $35,000 ($70,000 for a couple) of your RRSP assets may be withdrawn tax-free to use towards a down payment on a property. You can’t access the money in a locked-in RRSP or a group RRSP, for example. Participation in the HBP is contingent upon meeting the following requirements: You must be a first-time buyer to qualify. A signed contract to purchase or construct a qualified residence for yourself or a family member who is disabled is required. The money you’re withdrawing from your RRSP must have been in the bank for at least 90 days. When you take money out of your RRSPs for the HBP, and until the time you buy or build a qualified house, you must be a Canadian resident. Within a year of purchasing or constructing the qualifying house, you must move in and use it as your primary residence. You must have the intent that the person with a handicap for whom you purchase or construct a qualified house, or whom you assist in purchasing or constructing a qualifying home, will use the home as his or her permanent residence. If your repayable HBP amount is zero on January 1 of the year of the withdrawal, and you fulfil all the other HBP eligibility rules, you may be eligible to enroll in the HBP again. The greatest thing is that if you pay back the money within 15 years, you won’t have to pay taxes on the withdrawal. The First-time Home Buyer Rule If this is your first time buying a property, you are termed a “first-time buyer.” You are not eligible for first-time homebuyer status if you plan to live in a residence that was acquired by your spouse. The 4-year rule If you did not own a property or reside in a home acquired by your spouse for 4 calendar years previous to 2019, you may qualify for the HBP. You may rejoin the HBP four calendar years after relocating to a flat, for instance, if you and your spouse have divorced and you no longer live together. You may become qualified in 2022 if you relocate in 2018. Before you may sign up for the HBP programme again, any outstanding debt must be settled in full. Qualifying for Homebuyers’ Plan after relationship breakdown, withdrawals after 2019 Withdrawals made after March 2019 are subject to the new policy mentioned below. If you and your husband or partner are no longer living together due to marital or relationship problems, you may be eligible to participate in the Homebuyer’s Plan. Your separation period prior to the withdrawal date is at least ninety days. You and your spouse started living apart in the year of the withdrawal, or during the preceding four calendar years. If the Homebuyers Plan participant already owns a home that was their principal residence at the time of the withdrawal but is not the same as the dwelling they intend to purchase with the Homebuyers funds. If the participant sells or terminates their right to the principal residence to their former spouse no later than the end of the second calendar year following the year of the withdrawal, or if the participant remarries before the end of the second calendar year following the year of the withdrawal, then the Homebuyers Plan participant may use it. No sooner than 30 days prior to the withdrawal, and no later than September 30 of the year following the withdrawal, does the Participant acquire the interest or right of the other spouse in the home that was the matrimonial home; and if the Participant has a new spouse at the time of the withdrawal, the new spouse may not own or occupy a dwelling that is the Participant’s primary residenceI How to Withdraw RRSP Funds Under The Home Buyers Plan Fill out form T1036 to make a tax-free withdrawal from the Home Buyers plan. This is a request to withdraw money from a registered retirement savings plan under the Home Buyers’ Plan (HBP). To notify your bank of your desire to withdraw money, please complete this form. Be cautious to follow the correct procedures, since it is impossible to take the funds from your RRSP and then claim they were part of the Home Buyers Plan. Multiple Home Buyers Plan withdrawals are permitted every calendar year, up to a maximum of $35,000. RRSP Home Buyers Plan Repayment Let’s get to the bad news now. The Home Buyers Plan requires you to make annual payments on the full amount of money you withdraw. These payments must begin in the second year after the closing of the Home Buyers Plan withdrawal. The Home Buyers Plan functions similarly to a loan, although interest-free. All money taken out must be paid back within 15 years, at the rate of one-fifteenth each year. Any payments made to settle an outstanding HBP amount will not reduce your contribution limit. Repaying an HBP loan with RRSP contributions is not eligible for the RRSP tax deduction.The amount reported on Schedule 7 as an HBP payback will be subtracted from any RRSP contribution refunds. You should also check that your RRSP contributions are being applied to the HBP loan, not just your RRSP. Many Canadians don’t do this and end up in arrears on their HBP as a consequence. Related posts 18 July 2023 Unlocking Your RRSP: The Home Buyer’s Plan Explained 10 July 2023 How Your Home Warranty Can Help You in an Emergency How Your Home Warranty Can Help You in an Emergency The last thing you want to face

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3 “warranty exceptions” for warm weather

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3 “warranty exceptions” for warm weather Your routines as a new homeowner will likely shift when the temperature outdoors rises. Do you like gardening? Do your kids like spending time in the backyard? Or do you like to read a light novel inside as you cool down this summer?  Unfinished exterior work or a malfunctioning air conditioner might put a damper on your good time no matter what you choose. That’s why it’s important to familiarize yourself with the “warranty exceptions” (as Tarion calls them) that will go into effect in May. Seasonal goods Decks, caulking, and in-ground supports are considered “seasonal” warranty items, as are exterior painting, cement, concrete, mortar, and stucco work because doing so needs warmer weather (preferably drier). Depending on when you filed a warranty form for seasonal products to your builder and Tarion, they will be handled in one of two ways: Suppose you filed a warranty request with a seasonal item between November 16 and April 30. In that case, the builder must do the work as soon as feasible once weather conditions are favorable again, but no later than September 1.  Between May 1 and November 15, if you filed a warranty claim for a seasonal item, your builder has 120 days to execute the repair according to the standard warranty claims procedure. Unique Holiday Merchandise “Special seasonal” warranty items include final grading, sod, driveway, and pathway installations. Municipal permissions and installations (such as sidewalks and curbs) also need more time, thus these projects are given extensions. You must file a warranty claim during the first year of owning your new home if the aforementioned things are not fully functional. From the moment your warranty begins until the end of “seasonal weather” (often around November 15), your builder has 270 days to execute any necessary seasonal modifications. Your builder’s warranty on these things will extend into the second year since there are only 199 days of seasonal weather in a year. Air conditioner Have you unpacked the air conditioner your construction company sold you yet? Avoid overheating this summer by taking it easy. If your air conditioner stops working entirely between May 15 and September 15, you may expect speedier service under your new home warranty. We mean there is no way to cool down your house since either your air conditioner is not installed yet or is broken. Notify your builder and Tarion about the problem. After receiving your request, your builder has 30 days to make the necessary repairs. Not a problem, Tarion is here to assist you. Conclusion What if you own a condo, and the air conditioner and any seasonal or specialty goods are considered part of the common elements? If this is the case, you should notify the board of directors of your condo association. They oversee the warranty for shared facilities and may coordinate resolutions with the developer and Tarion. You can make the most of your house this summer, inside and out, by taking a break from your favorite summer activities to read up on what your warranty covers. Related posts 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 Reuters survey predicts rising Canadian housing prices due to high demand Your routines as a new homeowner… 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,… 11 May 2023 Sales and prices in Toronto’s real estate market are soaring Sales and prices in Toronto’s real estate market are soaring After last year’s record meltdown,…

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Recent Immigrants Cannot Support High Home Prices in Canada

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Recent Immigrants Cannot Support High Home Prices in Canada Canada’s population growth is contributing to rising home costs. The more the demand, the higher the property price, right? Don’t jump to conclusions; the story’s premise could not be accurate. The income levels of immigrants were surveyed in 2021, and the results were just revealed by Statistics Canada (Stat Can). Recent immigrants to Canada have lower wages than the average Canadian, making it difficult for them to afford even the most basic housing needs without raising rents. Recent Canadian immigrants had far lower wages than native Canadians Recent immigrants to Canada (those who came between 2016 and 2019) are paid much less than native-born Canadians. The median annual income of these immigrants was $35.6k, which was about 20% (-$7.2k) lower than their non-immigrant counterparts. It’s not simple to obtain affordable housing if a couple earns the median salary. Rent in Most Canadian Cities Is Too Expensive for Newcomers Finding affordable rental homes is challenging for them. At the 30% poverty line for housing costs, they have a maximum monthly budget of $1,780. Put another way, that’s around 17% less than the $2,140/month a dual-income, non-immigrant family may spend before meeting the shelter poverty criterion. In April, the national average for a one-bedroom rental was a little over $2,000 per month. The average monthly rent is much higher in more costly cities like Toronto ($2,370) and Vancouver ($2,600). Canadians could only afford to buy a home in a few urban centres It will also be difficult to purchase a property at this salary. The maximum price they could pay is roughly $400,000 if they used 100% of their available credit and a high-ratio mortgage. It’s around $65k less than a family of four without immigration status could afford. In all of Canada, that amount of money won’t go very far. According to CREA, the national average house price in March was $709,000 nationwide. Winnipeg ($331k), Moncton ($309), Quebec City ($323k), St. John’s ($313k), Regina ($309k), Mauricie, QC ($231k), Fredericton ($273k), or Saint John ($270k) are among the few places that come close to the budget. For a while, a story can keep a trend going, but it becomes difficult to maintain after that. Immigration and population expansion may boost demand, but wages couldn’t keep up in the long run. Taking increasing proportions of family earnings is the only way to continuously boost rents without fast, inflationary rise of income. On the other hand, widespread acceptance of shelter poverty isn’t exactly a selling factor for future immigration. Related posts 24 May 2023 Recent Immigrants Cannot Support High Home Prices in Canada 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,… 11 May 2023 Sales and prices in Toronto’s real estate market are soaring Sales and prices in Toronto’s real estate market are soaring After last year’s record meltdown,… 11 May 2023 Rise in Toronto’s Home Building Costs Rise in Toronoto’s Home Building Price Even if inflation in Canada has slowed, the price of constructing… 05 May 2023 Toronto and Vancouver Home Prices Rise Like Mortgage Credit Toronto and Vancouver Home Prices Rise Like Mortgage Credit Home prices increased dramatically last month… 29 April 2023 To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years What is Canada’s secret for having… 24 April 2023 Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Everyone in Canada is trying to determine…

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Rise in Toronto’s Home Building Costs

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Rise in Toronoto’s Home Building Price Even if inflation in Canada has slowed, the price of constructing a new house continues to soar. According to Stat Can, Q1 2023 saw a significant increase in the price of constructing a new house. Instead of slowing down, growth has been picking up steam and is already over five times the inflation objective. In Toronto, the “high rise crane capital of North America,” construction prices have increased by over 9 times the rate of inflation. The price of constructing a home in Canada is rising rapidly Despite the reduction in inflation, Canadian homebuilding costs continue to rise. First quarter 2023 construction costs increased by 1.8% from the previous quarter’s levels. Despite apparently slowing inflation, annual growth has increased to 11.1%. Almost every category of expense has increased. Growth was highest in Conveying Equipment (+4.0%) and Masonry (+4.0%). The Woods, Plastics, and Composites category was the only one to see a decrease (-0.2%), and this was due only to a drop in timber prices. Despite a precipitous decline in recent years, current timber prices remain much above levels predicted by 2020. Home construction costs in Toronto are rising at a rate that is 60% higher than the national average Home construction expenses in the first quarter were relatively high throughout Canada, with Toronto being an exception (+3.2%). Compared to Stat Can’s urban index, it grew at a rate 23 percentage points quicker, well above even Halifax (+2.6%) and Vancouver (+2.3%). Only in Calgary (-0.2%) did prices fall throughout the quarter. Toronto, the construction hub of North America, is expanding at a pace that is causing shortages in the industry. Annual growth exceeded 17.7 percent, about 60 percent greater than the national average, in the city with the most high-rise cranes. Although inflation in Canada has slowed, construction costs, particularly in Toronto, continue to increase. In an extreme case of diseconomies of scale, the country’s rapid population growth has hampered its economic development. Demand is higher than productive capacity, therefore rising costs cannot be offset by increasing production. As a result, the price per unit rises, as can be shown. It’s a risky move for a nation whose economy is 30 percent more reliant on the property market than the United States’ was in 2006. Related posts 11 May 2023 Rise in Toronto’s home building costs 05 May 2023 Toronto and Vancouver Home Prices Rise Like Mortgage Credit Toronto and Vancouver Home Prices Rise Like Mortgage Credit Home prices increased dramatically last month… 29 April 2023 To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years What is Canada’s secret for having… 24 April 2023 Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Everyone in Canada is trying to determine… 14 April 2023 Canada maintains 4.5% interest rate, What’s next Canada maintains 4.5% interest rate, What’s next? The Bank of Canada will reveal its decision on… 11 April 2023 TRREB: GTA Competition increases due to tight market conditions  TRREB: GTA Competition increases due to tight market conditions In March 2023, the Greater Toronto Area… 08 April 2023 Why Canadian Homeowners Aren’t Selling Why Canadian Homeowners Aren’t Selling There hasn’t been the usual rush of vendors at Canada’s…

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Toronto and Vancouver Home Prices Rise Like Mortgage Credit

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Toronto and Vancouver Home Prices Rise Like Mortgage Credit Home prices increased dramatically last month in Canada’s two most populous real estate regions. In April, home values in both Toronto and Vancouver increased. There has been a gain in sales and a decrease in inventory in both markets, but this probably hasn’t led to the same level of expansion in both locations. More likely to blame are falling mortgage rates, which introduced leverage proportional to the price rises The Value of a Toronto Home Increased by 2.4% in the Past Month Although they are still down from a year ago, Greater Toronto real estate prices increased last month. In April, the median price of a home, or the composite benchmark, increased by 2.4%, or $27,200, to $1,145,700. This is the third consecutive monthly increase, and it follows a gain of 2.5% the month before. Even though home prices are still down dramatically from last year, they are recovering quickly.  It’s a huge increase, and once you consider Canada’s other major and expensive market, the word “unusual” takes on further significance. The Value of a Home in Vancouver Increased by 2.4% Previous Month After hitting rock bottom in January, property prices in the Greater Vancouver are also rising rapidly. The index rose for the third month in April, increasing by 2.4% ($27,400) to $1,170,700. While prices are still lower than this time last year, at the current rate the difference will be made up in less than three months. Today’s experts from both locations didn’t waste any time blaming a lack of stock for the problem. Similar price increases indicate that supply shortages were a factor in both cities. Lower mortgage rates have provided a similarly powerful source of leverage Probably more The easing of credit standards in Canada may be to blame. Borrowers have moved toward fixed rate mortgages as the Bank of Canada (BoC) has kept rates steady. The average fixed mortgage rate dropped by 0.3 percentage points from March to April, increasing the borrower’s leverage by about 2.6% assuming the borrower maintains the same income. It’s also important to remember that the monthly installments won’t change. The standard property purchased in March using a conventional mortgage is essentially the same in April, despite a significant rise. Home prices ate up any “savings” from the reduced interest rate. Both Toronto and Vancouver saw similar results. Price increases in response to rising demand are capped by what can be afforded in terms of servicing existing debt. When the cap is on, squeezing a tube of toothpaste doesn’t accomplish much. It can spread out and take up more space after the top is removed. For the same reason, despite Canada’s record population growth, home prices have fallen due to a lack of mortgage credit. It wasn’t until mortgage rates started going down that prices started going up in tandem with the economy’s growth. Isn’t that shocking? It shouldn’t be, according to Bank of Canada (BoC) studies. Lower interest rates, according to the former Deputy Governor, did not increase affordability because housing values simply adjusted to absorb the decrease. Either that, or your local think tank is correct, and buyers evaluated economic trends, immigrant patterns, and liquidity before concluding that prices should absorb the payment discount from lower rates. Related posts 05 May 2023 Toronto and Vancouver Home Prices Rise Like Mortgage Credit 29 April 2023 To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years To Avoid Defaults, Canadian Banks Extend Amortisations 35 Years What is Canada’s secret for having… 24 April 2023 Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Canada’s Cheap Mortgage Credit Drives Real Estate Prices… Again Everyone in Canada is trying to determine… 14 April 2023 Canada maintains 4.5% interest rate, What’s next Canada maintains 4.5% interest rate, What’s next? The Bank of Canada will reveal its decision on… 11 April 2023 TRREB: GTA Competition increases due to tight market conditions  TRREB: GTA Competition increases due to tight market conditions In March 2023, the Greater Toronto Area… 08 April 2023 Why Canadian Homeowners Aren’t Selling Why Canadian Homeowners Aren’t Selling There hasn’t been the usual rush of vendors at Canada’s… 08 April 2023 Toronto Real Estate Correction Pauses, Prices Upto $27k Toronto Real Estate Correction Pauses, Prices Upto $27k Is the Greater Toronto real estate market overpriced?…

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Toronto Real Estate Correction Pauses, Prices Upto $27k

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Toronto Real Estate Correction Pauses, Prices Upto $27k Is the Greater Toronto real estate market overpriced? The composite benchmark, or average house, had a price increase in March, according to statistics from the Toronto Regional Real Estate Board (TRREB). Despite the uptick, home sales have been dismal, and that isn’t expected to change anytime soon, according to industry analysts. For a second consecutive month, though, purchasers drove prices significantly higher. Home values in the Greater Toronto Area increased by $27,000 in only one month A year after interest rate rises, property prices in the Greater Toronto Area have surged. In March, the TRREB standard surged 2.5% (+$27,200) to $1,118,500. Toronto’s benchmark also increased, reaching $1.101 million (a gain of 2.2%, or +$24,100) from the previous month. The BoC’s annual inflation objective is 2%, therefore, this month’s rise was higher than that. Real estate prices in the Greater Toronto Area may have reached bottom Real estate prices in the Greater Toronto Area are still falling, but they may be bottoming out. Prices in TRREB have decreased by 16.2% (-$216,200) and in the City of Toronto by 13.1% (-$167,500) during the last year. But, the worst of the last year’s decline is over, and prices have risen by around 1 point relative to each benchmark. There is no sign of a rebound in the Greater Toronto Area’s housing market There was no increase in house sales to blame for the price increase. March existing home sales in the Greater Toronto Area dropped 36.5% to 6,896 units. That’s down considerably from the previous year and the lowest level seen in at least the past five years. There won’t be a dramatic shift in sales, according to industry experts. According to National Bank of Canada analyst Daren King, “despite these early indications of stabilization, sales remain significantly below their historical norm, having plummeted by 49.8 percent from their previous high in February 2022.” (NBF). Nevertheless, “…the possibility of a rebound in the housing market remains modest since we estimate the Bank of Canada to hold its policy rate at the present restrictive level for most of 2023,” they write. So, in the future months, sales should continue to be below their long-term average. The Supply of Preexisting Properties Declines Reduced stock levels may be attributed to retailers responding to improved credit availability. According to King, March’s drop in new listings followed a 24% drop in February. As a result, the number of active listings (as opposed to the total number of listings) has dropped by 21%. According to King, “as a consequence, market conditions in Toronto are somewhat tighter than the historical norm,” as measured by the active-listings-to-sales ratio.The Canadian real estate market, which is driven by moral hazard, has come to believe that a poor economy is beneficial to property values. Although King may be correct that sales will be flat for most of the year, investors are looking forward to lenient loan terms as a result of the worldwide financial crisis. The current narrative is that the state’s attempts to foster low-cost development will lead to a spike in property prices. Whether or whether they are incorrect is unclear at this time. Related posts 08 April 2023 Toronto Real Estate Correction Pauses, Prices Upto $27k 05 April 2023 Canadian real estate prices will “rip” higher: SCOTIABANK Canadian real estate prices will “rip” higher: SCOTIABANK Canadian real estate may be sluggish… 05 April 2023 After just 86 days, Canada quietly reversed sections of its foreign buyer ban After just 86 days, Canada quietly reversed sections of its foreign buyer ban After hours of enforcement,… 31 March 2023 Non-Canadians can buy property more easily Non-Canadians can buy property more easily Certain limitations on foreigners buying residential property… 21 March 2023 What You Should Know About the Toronto Vacant Home Tax What You Should Know About the Toronto Vacant Home Tax The Toronto Housing Affordability Task Force has… 18 March 2023 Canadian real estate prices rise for the first time in almost a year The fundamentals of the underutilised housing tax The real estate market in Canada has been experiencing… 18 March 2023 The fundamentals of the underutilised housing tax The fundamentals of the underutilised housing tax There has been some confusion over who will be required…

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After just 86 days, Canada quietly reversed sections of its foreign buyer ban

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After just 86 days, Canada quietly reversed sections of its foreign buyer ban After hours of enforcement, Canada’s restriction on sales to the foreign buyer should be relaxed. The nation discreetly eased limits on non-resident investors and temporary residents only 86 days after adopting limitations on non-resident purchasers. The prohibition was probably only a diversion from the rumors circulating within the House. Foreigners may once again purchase undeveloped land in Canada Canada is changing its policy and will now sell the residential and mixed-use empty property to foreign purchasers. The nation claims this would increase the availability of houses, but the amendments make it clear that the property may be utilized for “any purpose.” It’s clear that progress is beneficial, but are there any drawbacks? They obviously haven’t considered the implications in one crucial area, land banking, with just two months to go and no information on beneficial ownership yet. The term “land banking” refers to the practice of accumulating land for future development. Due to the lack of a definitive timeframe, the phrase is in quotation marks. While land banking has been a concern since its inception, its prevalence has increased dramatically after the 2008 financial crisis (GFC). Since low-interest rates coincided with the movement of money throughout the globe, wealthy people from all over the world started buying property nearly everywhere to reduce their reliance on any one market. Vancouver was recommended as a safe haven for the money of Asian oligarchs by BlackRock itself. The influx of foreign cash into the market may be beneficial if everyone involved is on the same page. It’s an unusual decision that may put upward pressure on house prices to invite non-resident capital to use your unoccupied property as a deposit certificate to redeem (i.e. develop) without a timeframe in a nation that claims to be experiencing a housing crisis and a dearth of vacant land. Canada’s Real Estate Regulations Are Eased for Foreign Corporations The restrictions on foreign corporations buying property in Canada are being relaxed. This exemption applies to publicly traded Canadian corporations with foreign ownership or control. No need to fear; the regulations apply equally to private corporations. The previously established cap of 3% on non-resident ownership has been raised to 10%. A primary shareholder not located in the country where the company is incorporated would be legal under this scenario. Canada Relaxes Requirements for Visiting Foreigners to Purchase Permanent Residence Temporary residents with work permits will no longer be subject to the law. Every visitor to the nation who has at least 183 days remaining on their work visa may now legally purchase the property. It is important to note that this is the number of days remaining on their permit, not the minimum number of days they must spend in the country. Formerly, a foreign buyer could buy homes so long as they met certain requirements, such as having paid taxes for the previous five years, being physically present in the nation for at least 244 days each year, and the property’s worth not exceeding $500,000. Buying a property on your first day is possible if your work visa is valid for at least 183 days, a huge jump from the previous requirement of five years of residence. It seems that a sizable and unjustly punished market consists of purchasers seeking to acquire property on a temporary visa before paying taxes in Canada The laws for a non-resident purchasing property in Canada have not been altered in any other way. Recreational or vacation properties, as well as multi-unit structures, are still legal for a foreign buyer to own. However, it only applies to census areas with populations above 100,000, therefore, the vast majority of the nation was free of any limitations. In addition, there are still very few regulations placed on property-like acquisitions. While a pre-sale assignment, for instance, is not a house until the development is finished, it may still be purchased and resold before the end of construction. The buyer gets exclusive assignment rights to the subject property. When the residence is finished being built and transferred, non-resident speculation taxes do not apply to assignments. Since the “foreign buyer mini-bubble” in 2017-2018, which was mostly centered in Greater Toronto and Vancouver, there has been little indication that non-resident speculation has been a substantial portion of the market. There have been very few purchases recorded in British Columbia’s beneficial ownership register. Very low-interest rates and a surge in domestic investors drove price increases to record highs throughout the epidemic. Notwithstanding the fact that 38% of federal elected officials have such an investing plan, the prohibition was a useful distraction during the past election. The headline-making statement was also a chance to boast about keeping one’s word. The elected speculators are obviously attempting to build a market now that no one is paying attention, and rate cuts are expected by year’s end. Or at least a big enough market to stimulate home-market demand and raise prices Related posts 05 April 2023 Scotiabank predicts Canadian real estate prices will “rip” higher due to Fed 05 April 2023 After just 86 days, Canada quietly reversed sections of its foreign buyer ban Non-Canadians can buy property more easily After hours of enforcement, Canada’s restriction on… 31 March 2023 Non-Canadians can buy property more easily Non-Canadians can buy property more easily Certain limitations on foreigners buying residential property… 21 March 2023 What You Should Know About the Toronto Vacant Home Tax What You Should Know About the Toronto Vacant Home Tax The Toronto Housing Affordability Task Force has… 18 March 2023 Canadian real estate prices rise for the first time in almost a year The fundamentals of the underutilised housing tax The real estate market in Canada has been experiencing… 18 March 2023 The fundamentals of the underutilised housing tax The fundamentals of the underutilised housing tax There has been some confusion over who will be required… 07 March 2023 Is the Buggy Light Justified? Is the Buggy Light Justified?

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Despite the slowdown, Canadian mortgage debt continues to rise

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Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession, Canadians still have a serious addiction to mortgage debt. According to Stat Can, the sum of outstanding mortgage loans reached a new high in December of 2022. Even while the rate of increase in mortgage credit has fallen to its lowest point in years, it is still significantly higher than it was before 2020. With a GDP as large as Canada’s and expanding at a much quicker rate, it continues to be a cause for concern. Total Canadian mortgage debt exceeds $2 trillion The mortgage debt in Canada continued to grow by billions towards the end of last year. In December, the total amount due reached $2.08 trillion, an increase of 0.1%, or $3.0 billion. Compared to last year, this is a $137.8 billion (7.1%) rise. The fact that one-third of a very small population is responsible for so much debt is cause for alarm in and of itself. But the rate of expansion is slowing down. When interest rates rise, mortgage borrowing in Canada slows dramatically Mortgage credit is being slowed by slowing real estate sales and rising rates. In February of 2022, a month before the initial increase to the overnight rate, annual growth peaked. Every month since then has seen slowing, culminating in December’s reported rate of 7.1%. Since October of 2020, it has been declining at an ever-faster clip. Mortgage Debt Continues to Outpace Productivity Despite Slower Growth Please keep in mind that slowing down is not the same thing as being slow. The amount of mortgage credit that is currently outstanding continues to grow at an abnormally rapid clip. The rate in December was still 1.4 percentage points above the average for the five years preceding to 2020. Even though its size is comparable to GDP, its growth rate is substantially higher. Increase in Mortgage Debt in Canada Slowly but surely, rising interest rates are putting an end to Canada’s mortgage binge. But if mortgage lending expands faster than GDP, consumer spending would inevitably fall. In a nutshell, the unproductive financial economy is stifling the productive economy, which is terrible for long-term expansion Related posts 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise. 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… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 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?…

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Bank of Canada will increase rates, and leave room for more: BMO

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Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t see a rate cut this year is that Canadian markets have already started talking about them. Over the weekend, BMO Capital Markets sent a letter to investors stating their anticipation of a rate increase this week. Currently, they predict a pause in rate hikes by the Bank of Canada (BoC) following the upcoming one, but they caution that this may not be the BoC’s limit. Hikes in the future could be fueled by bullish fundamentals, inflationary concerns, and market anticipation. The Bank of Canada Is Likely To Raise Interest Rates Next Week It is widely anticipated that the Bank of Canada will increase its overnight rate this week, marking its entry into the supposedly restrictive terrain it has previously addressed. According to BMO, the overnight rate will increase by 25 basis points (bps), making it equal to its 20-year high. There is anticipation that this will be the highest point for the year, but they caution that further increases cannot be ruled out. The BMO rate and macro strategist Benjamin Reitzes argues that with inflation still far above target, we predict that Governor Macklem and the Governing Council will keep the door open to further increases just in case the data forces their hand. He said the BoC may surprise the market by cutting rates before the fall, when cuts are widely expected. There’s reason to think there might be even more hikes down the road Canada’s Base Is Solid, and It May Not Need To Ease There is much speculation of a recession, yet there are few indicators of a downturn in Canada’s fundamentals. The preferred gauge of inflation used by the BoC, core CPI, is still above 5% and much above the 2% target rate. December’s employment report showed another near record growth, indicating that the economy is still humming along strongly. The Bank of Canada’s Business Outlook Survey from last week was a major shortcoming. Its data demonstrated a decline in morale, although companies maintained an optimistic outlook. Despite the slowdown, Reitzes argues that it is intentional on the part of the BoC. They’re attempting to reduce inflation by cooling the economy. More dangerous than credit shortages is the possibility of an inflationary spiral. Moreover, BMO suggests the BoC may raise rates for risk management reasons. They would rather keep inflation under control than have it spin out of control if they are overly permissive. The latter is a more serious issue that requires a more dramatic cooling event to mitigate. In this situation, it’s preferable to err on the side of caution than carelessness. While there has been some good inflation news as of late, that doesn’t mean the trend will continue. Upside inflation risks still exist, but they have diminished since he made those comments a few months ago. Due to market anticipation of a reduction, the BoC may be compelled to raise rates Since the market is already factoring in planned layoffs by this fall, it’s time to start a fresh funding round, right? For precisely this reason, the BoC may be unable to decrease interest rates. A resurgence in economic activity may be possible before it completely dies down if expectations shift in a lenient direction. According to Reitzes, this could lead to even higher inflation before the desired effect is seen. “While the BoC isn’t excessively busy with the market, improved financial conditions go counter to the purpose of lowering inflation pressure, and cannot be a positive development,” he argues. BMO believes that a 25 bps raise is warranted on the basis of fundamentals, risk management, and market conditions. Although, as Reitzes points out, the BoC often attempts to surprise. This keeps a central bank relevant by discouraging individuals from taking actions that run counter to its current objective. That’s why, he advises, we shouldn’t rule out pausing the meeting this week. They still want to go on future excursions, despite this setback. In particular if core inflation proves to be more persistent than expected. Related posts 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 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?… 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…

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How To File A Warranty Claim And What You Can Anticipate

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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…

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Three Improved Ways to Understand Your Warranty

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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…

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

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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…

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