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Buying a home in the GTA is expensive and too often buyers don’t take advantage of available rebates. There are a handful of rebates that could cushion the costly blow of buying and maintaining a home. Most of them come from one of the three levels of Government and are intended to motivate Ontarians to buy or care for their home in an efficient and responsible manner.

There are rebates for new homeowners, for homes that are more energy efficient and even rebates for homes that feature “smart” technology. Unfortunately, most don’t leverage these rebates mainly because they don’t know they exist.

Purchasing Rebates

In Ontario, homeowners could apply for a GST/HST rebate if they purchased, built or renovated a property. This rebate allows homeowners to recover some of the taxes that they paid towards the purchase. This even extends towards mobile and floating homes.

Prior to closing, the buyer will be saddled with the land transfer tax, which is based on a sliding scale that ranges from 0.5% to 1% based on the price of the property. First-time homebuyers are eligible for a rebate up to $4000. The lawyer should arrange for this rebate to be paid once the property is transferred to the buyer’s name.

Energy Efficiency Rebates

Homes need to be environmentally friendly and leave the smallest carbon footprint possible. To entice homeowners to convert their home to be more efficient, the Government offers rebates for owners who install and employ certain technologies that aid in making a home more efficient.

In 2017, Save on Energy and the Green Ontario Fund started offering a $100 rebate for those who purchase and install a smart thermostat. These modern thermostats allow owners to remotely control the temperature of their home. This technology learns your preferences and analyzes data to automatically adjust. They can also save help money by adjusting the temperature when no one is home. 

Renovation Rebates

Like efficiency rebates, Ontarians could apply for green renovation rebates. The province rolled out a new program where homeowners could receive thousands of dollars in rebates if they complied with renovations that meet certain green standards.

This program offers up to $7,200 in rebates and covers insulation, windows and heat pumps. The rebate can only be paid if the homeowner hires an approved contractor.

Every homeowner should be aware of available rebates and ensure they do everything in their power to receive the money they are eligible for.

As spring approaches, both the weather and the housing market are poised to thaw. The question that buyers and sellers will be asking is whether last year’s stagnant spring market was an aberration or the beginning of a trend.

Early reports from 2018 seem to position the housing market as being more in-line with profitable years like 2013 and 2014. While it’s a bit early to know for sure, the signs do point to this spring being more productive and generating more sales.

Spring Impact on the Housing Market

Spring usually drives property sales due to an increase in inventory as more people list their homes. As well, it’s a popular time for buyers as the new supply offers more options for them to find a home that fits their budget and needs.

Supply can effectively drive the market and the spring typically sees an influx of listings that motivates buyers to get out and shop for their first or next home.

2017’s Stagnant Spring Market

Last spring, the average selling price dropped and there were fewer transactions. The biggest decline was experienced by detached houses. The slowdown could be attributed to the lack of supply or economic factors. In addition, affordability might have been an underlying reason.

The 2018 Spring Market

This year’s optimism could be related to the arrival of new Canadians, many of whom are situated in the GTA and looking to buy a permanent residence. This will drive the market as will the completion of several major development projects. Markets like the GTA tend to rebound due to the population and the constant demand.

It’s fair to assume that the bloated rental market and the high cost of rent might motivate renters to shift course, propelling the market to greater heights in 2018.

It might not be a season of crazy gains but it will wake the housing market from its hibernation and could gain steam through the summer and well into 2019.

The biggest takeaway is that buyers and sellers shouldn’t wait another year. They should start the process and monitor the market in the coming weeks. Contact us today to learn more about the GTA’s spring housing market and to discuss the steps to mortgage pre-approval.

Searching for the right mortgage lender and terms can be an arduous process filled with questions and options. Most people aren’t inherently equipped with the knowledge required to navigate the road to mortgage approval. Applicants need to ask the right questions to an experienced mortgage professional.

Some of the common questions borrowers ask revolve around credit profiles, types of mortgages and what are some of the hidden costs and fees.

Credit Profiles

Most applicants focus on their credit score, thinking it will help determine the loan amount. In fact, an entire credit profile could impact an application, which includes payment history, debt load, and unpaid debts.  This profile helps paint a clear portrait of the applicant’s financial history and situation. If the profile is strong it can reassure the lender that a borrower can handle the loan.

Credit scores do matter to lenders but it is not the only aspect that can determine a mortgage approval or rejection. 

Different Types of Mortgages

There are a lot of different types of mortgages and it can get a bit confusing for first-time borrowers or even the seasoned pros.

Mortgage types include but are not limited to:

• Traditional mortgages (20% down payment, loan-to-value ratio)
• High-ratio mortgages
• Fixed rate mortgages
• Variable rate mortgages
• Convertible mortgages
• Open mortgages

Each mortgage has its own stipulations and terms so sit down with a mortgage specialist to determine which is best for your situation.

Costs and Fees

Mortgages contain a lot of fine print which can balloon the cost of your home. One of the costs is insurance that the borrower must purchase if their down payment is less than 20%. Other costs include taxes, processing fees (usually $200-300), lawyer fees and interest adjustment.

Borrowers need to be aware of all the costs and fees and make sure they are covered in their budget.

The best way to approach a mortgage application is carefully, thoroughly and with knowledge. Contact us to learn more about your mortgage options. We can walk you through the entire process and answer all your questions.

Making the leap from lifelong renter to homeowner is exciting but it can also be stressful and time-consuming.  Homeownership comes with a ton of responsibility but it results in finally having a place to call your own. A place where you can settle, make all the choices and plant roots.

Here are some tips to help make the transition from renter to owner as smooth as possible.

Create a Detailed Budget

Entering homeownership for the first time is expensive and a big financial change for most. You need to know where your money is going every month. Create a detailed budget where you outline every monthly cost and be sure to leave some room for those pesky costs that pop up every month.

Your budget will guide most of your monthly spending. The more detail you include, the less chance you have of being surprised. If you come under budget some months you can consider making a larger mortgage payment, which will go towards the principal.

Learn to be Handy

Renting can be nice and breezy. When your faucet breaks, you call your landlord and they call the plumber. When you have an electrical problem, you call your landlord and they call the electrician.

Owning a home means being responsible for every broken appliance, leaky faucet and every part of a home that requires maintenance. Learning to be handy and being able to make small repairs can save an owner a lot of money and get your home running at optimal capacity quicker.

There are a ton of DIY classes people can take to improve their skills and knowledge. Home Depot and community centres tend to offer these classes in the GTA.

Do not Overlook…

An important tip for homeowners is to stay organized. If you are upgrading the size of your home, you will have more space so use it wisely. This doesn’t mean acquiring more stuff, but instead, make sure you keep your storage spaces organized and don’t let your garage devolve into a room full of tools and boxes of old clothes.

There might not be a bigger lifestyle change than the one that comes with becoming a homeowner for the first time. Go into the situation with a plan and do your best to execute that plan every month to ensure the transition works and to minimize stress.