The Hintze Team Blog

Some men in a pickup truck drove to a lumber yard. One of the men walked into the office and said, “We need some four-by-twos.”
The clerk asked, “You mean two-by-fours, don’t you?”
The man said, “I’ll go check,” and went back to the truck. He returned shortly and said, “Yeah, I meant two- by-fours.”
“All right. How long do you need them?”
The customer paused for a moment and said, “I’d better go check.” After a while, he returned to the office and said, “A long time… we’re gonna build a house!”

Higher gas prices and an uncertain economic outlook means cottage country is becoming further out of reach for some buyers - even as prices soften for some Canadian recreational properties. After a decade of substantial price increases, a significant jump in listings on the market and fewer buyers have resulted in starting prices that have started to decline in some areas, according to a report by ReMax Ontario Atlantic Canada released today.
Of 45 Canadian markets surveyed, ReMax says 67 per cent reported falling sales.
While most markets saw prices remain flat or increase slightly, some areas are starting to see decreases for the first time. Starting prices in popular Ontario towns such as Haliburton, Bancroft and Parry Sound were down from 10 to 20 per cent, according to ReMax.
In Haliburton, a starter waterfront cottage can be bought for $275,000, down from $350,000 last year. In Parry Sound, a similar cottage can be purchased for $180,000, down from $200,000.
“It’s been a sluggish market. I think given the economic conditions you have to have your head in the sand if you don’t acknowledge that there’s a correction around the corner,” says Muskoka-based realtor Anita Latner.
With the Ontario economy slipping into what may be a technical recession as the manufacturing sector takes a major hit from layoffs and downsizing, discretionary purchases such as vacation homes are typically the first to go.

Source:www.gtawatch.com

Professional appraisers sum up their entire body of knowledge in three words: " Buyers make value." Your home is worth as much as a buyer will pay for it.
If your home has been on the market for months, it’s a clear message that the property may not be worth what you're asking for it. This is particularly true if there haven't been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you're working with a time limit.
If you're not really motivated to move soon, you can always wait - years if necessary - and hope inflation will catch up with the price you want. The problem is that in that time, your home begins to feel shopworn. Buyers become suspicious of a house that's been for sale for a long time.
If you really do need to sell, with your REALTOR® discuss a schedule for gradually dropping your price until you find a level that attracts buyers. There's no point in saying, " We simply can't sell our house." Anything will sell if the price is right.
Source: www.valleyreadvisor.com

The number of homes sold through the MLS@ System of the Parry Sound Real Estate Board was up considerably on a year-over-year basis in June 2010.
According to statistics provided by the Board, residential sales numbered 57 units in June 2010, 30 per cent above levels reported in the same month last year.
"June was a good month for home sales, but the large year-over-year gain largely reflects the weak showing last June," said Shirlene Johnston, President of the Parry Sound Real Estate Board. "Looking ahead to the second half of 2010, sales activity has been widely forecast to soften as the HST and rising interest rates impact affordability."
The number of new residential listings on the Board's MLS@ System rose 27 per cent from year-ago levels to 147 units In June. While new supply stands well above levels reported last year, it has actually been trending lower in, recent months. Active residential listings numbered 705 units at the end of June, up 19 per cent from a year earlier.
There were 12.4 months of inventory at the end of June 2010, down from one year earlier (13.5 months). The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The Parry Sound Real Estate Board is committed to a high standard of business practice, strong business ethics, and continuing education development that assists REALTORS® in effectively serving the real estate needs of the community. With approximately 100 Members, its REALTORS© service a large geographical area, extending from the French River to the north, southerly to Go Home Lake Road, easterly to the Highway 11 corridor, and westerly which includes the shores of Georgian Bay.

Should I add on or buy a bigger home?
Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:
How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
What do local zoning and building ordinances permit?
How much equity already exists in the property?
* Are there affordable properties for sale that would satisfy housing needs?


How do I prepare the house for sale?
First and foremost, put it in the best condition possible, especially if you are in a market with few buyers and lots of homes for sale. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it. Next, work on your home's curb appeal. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door. Other quick fixes that don't cost a lot of money but can help you get top dollar for your home:

Source: remaxprimerealestate.com

INTEREST-RATE INCREASE FOR JULY NOT NECESSARILY A SURE BET The Governor of the Bank of Canada has reasserted to Canadian banks and businesses that an interest-rate increase in not necessarily in cards, even though there has been speculation that the Bank will raise the rate inJuly.

The Governor of the Bank of Canada has reasserted to Canadian banks and businesses that an interest-rate increase in not necessarily in cards, even though there has been speculation that the Bank will raise the rate inJuly.

During a speech in Charlottetown, Mark Carney said that because of the uncertainty remaining in the global economy, and as governments prepare to take more austerity measures to deal with public debt, the Bank has not set out a definite plan regarding an interest-rate increase.

“In light of the scale and volatility of these conflicting forces, it should be evident that no particular path for monetary policy is preordained,” Carney said Wednesday.

Early this month, the Bank raised its key interest rate by 25 basis points, after Canada experienced more growth than expected.
SOURCE:www.canadianrealestatemagazine.ca

U.S.-Style Home Price Correction Unlikely in Canada


The Canadian Real Estate Association (CREA) released a new report today indicating that home prices will stabilize, and will remain stable for some time. This means that Canadian homeowners are unlikely to experience a U.S.-style decline in the value of their homes.



“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said Gregory Klump, Chief Economist, CREA. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”



Home prices tend to rise in cycles, characterized by periods of sharp growth and periods of stability. By contrast, income generally follows an orderly upward trend over time. For home prices to keep pace with incomes, they must rise faster during housing booms to make up for periods of little or no price growth. Canadian home prices were stagnant throughout most of the 1990s, while incomes continued rising, making housing more affordable. Over the past decade, home prices have climbed sharply as mortgage interest rates declined.



Klump adds: “The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle. History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”



The bursting of the U.S. housing market bubble has sparked fears that Canadian home prices may share a similar fate. However, according to Klump, “warnings to this effect ignore solid Canadian mortgage market trends.”



Conservative lending practices in the mortgage industry combined with prudent borrowing and accelerated payments among Canadian mortgage holders have been seen throughout the recent housing market cycle. Accelerated accumulation of home equity will provide options for the small proportion of homeowners who may face financial difficulty when their mortgage is renewed at a higher interest rate. These trends are expected to help Canada avoid a U.S.-style housing crisis.



The correction in U.S. home prices is set against a massive oversupply of homes due to distress sales, combined with a drop in housing demand due to unemployment. The unwinding of the housing boom in Canada will be more orderly, characterized by softening sales activity and stable prices.

Home sales very strong in April

The number of homes sold through the MLS® System of the Parry Sound Real Estate Board was up considerably from year-ago levels in April 2010 Meanwhile, new listings set a record for the month.

According to statistics provided by the Board, home sales numbered 50 units in April 2010, 43 per cent above levels reported in the same month in 2009. This is the highest level from April sales activity in six years, and the third best ever.

“Home sales came in very strong in April,” said Shirlene Johnston, President of the Parry Sound Real Estate Board. “It is likely that some future demand is being pulled forward by buyers motivated to finalize purchases in advance of interest rate hikes and the introduction of the HST.”

Both new and active listings posted records for the month of April in 2010. The number of new residential listings on the Board’s MLS® System rose 25 per cent from year-ago levels to 147 units, the fourth consecutive increase. Active residential listings numbered 632 units at the end of April, up 17 per cent on a year-over-year basis.

The residential average price of homes sold through the MLS® System of the Parry Sound Real Estate Board was $269,668 in April 2010. This is up 22 per cent from year-ago levels.

The dollar value of all home sales in April 2010 amounted to $13.5 million, up 74 per cent on a year-over-year basis. This is the highest dollar volume on record for the month of April.

There were 12.6 months of inventory at the end of April 2010, down from one year earlier (15.4 months) and the lowest level since October 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The Parry Sound Real Estate Board is committed to a high standard of business practice, strong business ethics, and continuing education development that assists REALTORS® in effectively serving the real estate needs of the community. With over 100 Members, its REALTORS® service a large geographical area, extending from the French River to the north, southerly to Go Home Lake Road, easterly to the Highway 11 corridor, and westerly which includes the shores of Georgian Bay.

7 Tips To Lower Home Construction Costs…
1. Contact Local Builders: talk with several custom builders in the geographical area in which you plan to build to get a rough idea of what it may cost to build your house. Builders can give you a range of costs with the associated quality/features. If you are serious about building and feel comfortable with a particular builder, consider having the builder work up some more detailed plans and an estimate of costs as part of a design-build process.

2. Start With Plan The Builder Has Used Before: It may be to your advantage to start with a plan that the builder has used before and "customize" it to suit your objectives. The builder already knows how much it cost to build and what it took to build that particular model.

3.Standardize The Size of Home: When building a home, it's best to work with even numbers. Have your home size rounded up or down to increments of two feet. This reduces wasted materials. Also, it's most economical to build a home which is no deeper than 32 feet. If the depth exceeds 32 feet, then your roof trusses may need to be specially designed and will be more expensive.

4. Some Features Cost More: The most expensive areas in a home are usually the bathrooms and kitchen. The number of windows and the size and quality of windows can also affect the cost. Vaulted ceilings and high roof pitches can increase the cost of a home. When using other homes to calculate an estimate, be sure the home has a similar style and features of the home you plan to build.

5.Shape of Home: Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labour and materials needed to build a home. Dome shaped homes also make efficient use of materials and tend to cost less than other shapes.

6.Chose A Relatively Flat Lot: Preparing a site for construction can have a big impact on the cost of a home. Building on a flat lot will usually cost less. If you have to haul in lots of dirt, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.

7.Careful Planning: Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. Builders love change orders and it is so critical that you have as few of these as possible which means that your specifications must be as detailed as possible. In general, it is a good idea to allow an additional 10% to cover unexpected costs.

SOURCE: www.ontario-home-builder.com

Today's Home Buyers Are Getting Smarter
Have you noticed the difference of today's home buyer compared to 5 years ago? Today's home buyers have changed and it's a great sign for the future. I can't talk about every market across the nation, but from what I have been seeing here, home buyers are getting smarter.

Remember back in the "hey days," when home buyers would buy a home and wouldn't think twice?

It went a little something like this:

"Can you show me that luxury home?" Said Mr. 2004 home buyer on a teachers salary.

"Sure I can show you that home, but I need to know if you can afford it." Said Mrs. 2004 real estate agent.

"Oh, it's not a problem, I have this loan where I can pay almost nothing for the first 5 years, and I know I will get a raise by then so it's all good." Said Mr 2004 home buyer on a teachers salary.

"Well, if that's how it's going to be, I would love to show you that home, do you have any money down?" Says Mrs. 2004 real estate agent.

"Money down? Na, I don't need money down. I have a loan that I only pay this fee to the lender, but it's all good, the fee is in the loan to. I don't need to worry about it though, because in five years I'll just sell the home and upgrade to a bigger mansion next to the lake. Home prices will always go up." Said Mr. 2004 home buyer on a 34k a year teachers salary.

"Yeah you're probably right, home prices will probably just go up, let's get you into that home!"Mrs. 2004 real estate agent.



This was an all to common scenario when buying a home was a "short term investment" rather then a home. Mr. home buyer would get a loan that he couldn't afford and Mrs. real estate agent would say let's get the deal done.

It was win - win.
I said home buyers are getting smarter these days. Does that mean home buyers back then were stupid? Not at all. Where they careless? Maybe. Were real estate agents part of the problem? Definitely. Can we blame the home buyer? Sure. Blame the banks? Seems a good fit. Blame the government? Of course, always blame the government.

So what makes today's home buyer smarter? Simple. Do you remember when you were a little kid and one day you thought you would try and stick a metal fork into the outlet to see where those little wholes went? What happened? You got zapped.

It's the same thing today with home buyers. No matter who's fault it was, the collapse of the real estate market was a wake up call to a lot of people. People got stung and many of them are still feeling the sting. It hurt, it hurts, and will continue to hurt until we wake up and take our forks out of the socket.

Home buyers on the fence? GOOD! Stay on the fence until you're sure you're ready.

Home buyers weighing risks? GREAT! Know the risks, calculate their effects on you long term, and make an educated decision.

Want more money down? EXCELLENT! I applaud you.

Not sure about job security? WAIT! Good for you.

Home buyers today are more reluctant, more calculating, and are becoming smarter. People got bit in this recession and they won'r forget for a very long time. People are thinking twice before putting their forks into those little holes and that is the only way we can move into the right direction in the future.

No matter what the government does to prop up the market or what REALTORS(R) say or how easy it is to get credit, home buyers are becoming smarter with their decisions.

So, Mr. and Mrs. 2010 home buyer, you make my job a little harder, you make your loan officers job a little harder, but you make our future brighter. Keep it up.

SOURCE: www.activerain.com

OTTAWA — The Bank of Nova Scotia has joined the parade of Canadian banks raising mortgage rates, saying late Tuesday that it would match increases announced by CIBC and National Bank earlier in the day.
Scotiabank announced its five-year, fixed-rate closed-term mortgage rate would rise by 60 basis points to 5.85%, matching the rate increase posted on Tuesday by CIBC, National Bank, and on Monday by Royal Bank of Canada, Toronto-Dominion Bank and Laurentian Bank.
Scotiabank is raising its four-year closed-term mortgage by 40 basis points to 5.34%, which is also in line with the other banks, but a 20 basis point increase to its three-year closed-term mortgage brings that rate to 4.5%, higher than the five other banks, but lower than the 4.7% offered by Canada Trust.
As with the increases announced Tuesday by CIBC and National Bank, Scotiabank’s mortgage rate increase will take effect Wednesday.
Meanwhile, National Bank, which lowered its five- and four-year fixed rates earlier this month, announced Tuesday that it would raise its five-year variable-rate, closed-term mortgage to 5.85%.
On Monday, the Royal Bank of Canada, Toronto-Dominion Bank and Laurentian Bank all raised their benchmark five-year mortgage rate by 60 basis points to 5.85%, effective Tuesday.
“This is actually a fairly large increase reflecting what’s happening in the bond market lately,” said Benjamin Tal, senior economist with CIBC World Markets, on Monday.
Anticipation over the Bank of Canada raising its overnight lending rate, possibly ahead of schedule, is pushing up bond yields, Mr. Tal said. And rising yields puts pressure on fixed-rate mortgages.
The central bank has said it will maintain its key rate at a record low 0.25% until mid-2010 unless inflation becomes a concern.
RBC and TD also hiked four-year term closed mortgage rates by 40 basis points to 5.34%.
RBC’s three-year product rose by 20 basis points to 4.35%, while the equivalent at Canada Trust gained 40 basis points to 4.7%. SOURCE: news.globaltv.com
SOURCE: news.globaltv.com

Step 12. Move in
Moving day will come sooner than you think, so get planning now.
‘Closing date’ often means moving date
Unless you have major repairs or renovations planned, you probably want to move in the day you take possession. If you intend to move at the end of the month, contact a moving company or truck rental company now. Most people move during this time and there aren’t trucks and movers for everybody. If you can move mid-week or mid-month, a moving company might cut you a deal.
Go with a reputable moving company
We’ve all heard moving horror stories. Go with an established, insured mover, so your items are protected..
Pack it yourself, and pack early
Nobody will take the same care you will. Start early and spread it out over many days. Label all your boxes by room so the movers know where to put them, and label anything that’s fragile.
Do you really need to take that with you?
A new home is a new lease on life, and a chance to liberate yourself from stuff you simply don’t need. If you haven’t used it or worn it in the last year, you don’t need it. Have a garage sale, or give it to Goodwill or United Way. You won’t have to pack and unpack it, and it will become someone else’s treasure.
Once you move in
The boxes are mostly unpacked and you’re settling in nicely. You will now feel a strange urge to begin making changes and improvements right away. That old carpet has to go, a bigger deck would be great for entertaining... slow down! Take time to get a feel for your new home, and more importantly, your new budget. Take a deep breath and enjoy what you have, your new home
Source: HowRealtorshelp.ca

Step 11. Close the deal
Your offer has been accepted and you can’t wait to move in. These are exciting times, but don’t break out the bubbly just yet. You have to close the deal. Your REALTOR® and lawyer will do most of the closing work, but here’s your checklist.
Closing checklist
Immediately begin satisfying any conditions of the agreement that require action on your part. Your REALTOR® will fill out the documents stating that the conditions have been satisfied.
· Have your lawyer begin searching title to the property. This can take a while, so make sure you give ample time.
· We recommend a home inspection to avoid any unpleasant surprises on move-in day.
· Well before closing, get your homeowner’s insurance. Your insurance broker will give you a ‘binder’ letter certifying that you’re covered. You can’t get a mortgage without this letter!
· Contact your lender and have them finalize your mortgage documents. Have your lawyer review them before you sign.
· Your lawyer will transfer essential utilities like hydro and water, but you’ll have to make sure telephone and cable companies switch their services to your name.
· If you rent, you must give notice to your landlord, or sublease your apartment.
· Begin planning your big move! Where are those cardboard boxes?
· Send out your change of address information and fill out a card at the post office. Contact the Ministry of Transport about changing your driver’s licenses.
· Walk through your new home one more time with your REALTOR®.
· A day or two before closing, you’ll meet with your lawyer to sign the closing documents. Your lawyer will tell you in advance what certified cheques you’ll need to seal the deal.

The big day arrives
Deliriously happy and emotionally exhausted, here you are on closing day. You made it! If your lawyer has arranged everything well, closing day can be surprisingly low on drama. Before you know it, you’ll be handed the keys to your new home.
Congratulations!
Stay tuned next week for step 12 final step
Source: HowRealtorshelp.ca

Step 10. Find a home inspector
When walking through a home you’d love to buy, it’s hard to put aside your emotions and really ‘see’ what kind of shape it’s in. Now that you are buying, it’s time to see everything. Home inspections rarely cost more than a few hundred dollars, and their service can save you from unpleasant surprises when you move in.
Your offer to buy may be conditional upon a satisfactory home inspection
This is an increasingly standard condition on any resale home. If the seller doesn’t want you closely examining the home before you take possession, you have to wonder why.
Go with a qualified professional
Make sure your inspector is a member of The Ontario Association of Home Inspectors (OAHI). It’s your guarantee they have the training and experience for the job. Your REALTOR® can recommend several home inspection companies to choose from.
What will they check during the inspection?
Lots of stuff. Plumbing and electrical systems, the roof, visible insulation, walls, ceilings, floors, windows and the integrity of the foundation. They check for nasty stuff like lead paint, asbestos, mould, outdated and dangerous wiring, and they’ll look for evidence of pests like mice or termites. A good inspector should make you feel like you’re watching a CSI detective.
Join the inspection
There’s no better way to get familiar with your new home than this three-hour checkup. If any problems are detected, you’ll see them firsthand, and you’ll also learn some maintenance tips from a genuine pro.
You’ll get it in writing
Their report will summarize the condition of your home. If there’s anything that needs work, the home inspector will provide an estimated cost for the repairs.
Home inspection for a new home?
New does not equal perfect, and construction quality can vary greatly from builder to builder. In some provinces repairs and corrections in new homes will probably be covered by a government or industry sponsored warranty program, so bad news doesn’t necessarily mean it will cost you.
Stay tuned next week for step 11
Source: HowRealtorshelp.ca

Step 9. Arrange a mortgage
Money makes the world go round, and a mortgage gives you the power to buy a home. This isn’t the most fun step in buying a home, but it’s vital.
Who do you talk to?
There are hundreds of banks, credit unions and other lenders out there who would love your monthly mortgage payments. So talk to everybody. Now is not the time to be money-shy! Talk to your banker and call around to other banks. Ask people you know. REALTORS® are very knowledgeable about Mortgages and have lots of good advice.
Call a mortgage broker
Mortgage brokers are another great resource. They find low rates for a living, and they usually don’t get paid unless you sign a mortgage through them, so they’re highly motivated to get you the best deal.
Your best mortgage might be the seller’s mortgage
Often, you can take over or ‘assume’ the seller’s mortgage. This is a great idea if the seller is locked into a lower interest rate than you can get right now. Your REALTOR® can help you.
Mortgage terminology
· Mortgage term
Typically from six months to five years, the ‘term’ refers to how long the bank has agreed to lend you the money. At the end of the term, you usually renegotiate a new term.
· Amortization
The length of time it will take you to pay off the whole mortgage. Often as long as 25 years, if you don’t accelerate your payments. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.
· Interest rates
Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using this mortgage calculator, check the difference between borrowing $100 000 at 6% and at 9% at the same amortization. Surprising, no?
That interest rate not only affects how much you pay, it also affects how much you can borrow. So remember to keep searching for the best rate!
How big a down payment?
You want as small a mortgage as possible, which means making the biggest down payment possible. Just remember to set money aside for all the fees associated with buying a home. Not to mention moving, repairs, renovations, new furniture... think ahead.
THE HOME BUYERS’ PLAN – A little sweet relief
If you’re a first-time homebuyer with money in an RRSP, you can withdraw up to
$20 000 without paying any income tax. If your spouse is also eligible, that’s
$40 000. Ask your REALTOR® how to best take advantage of this plan.
Lock into an interest rate; for how long?
It’s a tough question. What if you ‘lock in’ for five years and the rate goes into a period of decline? That could mean you’re stuck paying more than you had to for a long time. But if rates were to steadily climb over the next five years, locking in for five years now would be a great move. Locking in for a short period like six months is a more cautious ‘wait and see” approach. Your REALTOR® will have a lot of good advice.
What you need to apply for a mortgage
· Letter of employment confirmation
Ask your employer for a letter that confirms your position, your pay and how many years you’ve been with the company.
· List your assets
Your car, stocks, bonds, GICs. Show which assets will be used for your down payment.
· List your liabilities
Car payments, student loans, credit card debt. List all the money you owe, and note how you’re paying it off.
· Social Insurance Number
And your chequing account number, and your lawyer’s contact information
· Information about the house you want to buy
The home is your security on the mortgage, so the lender wants to know all about it.
Don’t forget these extra costs
Face your new financial responsibilities head-on, and you may even dodge some of them. And then won’t you look smart!
· Application fee
Some mortgage lenders charge a fee to process your application. Many lenders will agree to waive this fee, so make sure you ask!
· Appraisal fee
Your mortgage lender may need to have your new home appraised by a professional, and they often pass the bill on to you. Sometimes your lender will also waive this fee. Again, it doesn’t hurt to ask.
· Mortgage broker’s fee
Your mortgage broker may charge a fee that’s payable on your closing date. Ask your broker, to avoid surprises.
· Land survey fee
Lenders may require a survey of your property. Lenders will often accept an existing survey. Get your lawyer on the case.
· Home inspection fee
A home inspection is so important, we devoted an entire step. Avoid surprises and protect yourself... this is money well spent.
· Home Insurance
Mortgage lenders require you carry fire and extended-coverage insurance because your home is the security deposit on the mortgage. Often you can have these payments added to your monthly mortgage payments. Shop around.
· Title insurance
Not mandatory, but it protects you from all sorts of fraud and potential errors surrounding the title to your land. It’s normally a few hundred dollars. Ask your lawyer for details.
· Legal fees
Your lawyer is vital to the home-buying process. You’ll pay legal fees for their time and “disbursements” which are the costs involved in title searches, drawing up the title deed, and preparing your mortgage.
· Adjustments
The previous owner may have paid property tax or utilities in advance, and they want to be credited for those payments. Ask your REALTOR® and lawyer what might come up on the closing date.
· Maintenance and utility costs
Just a reminder, you now have more regular monthly payments in the form of property tax, utilities. Maybe some repairs are on the horizon...
· Land Transfer Tax
This Ontario tax varies between .5% and 2%. Ask your REALTOR® or lawyer to calculate the payment.
· The GST and new homes
Resale homes don’t involve GST, but new homes do. If you intend to live in your new home (instead of renting it out) there is some relief. Homes costing $350 000 or less get a 36% rebate. Homes over $450 000 do not qualify for this rebate.
Stay tuned next week for step 10
Source: HowRealtorshelp.ca