In today’s economy, owning a home in Toronto has become a more affordable option than ever before. With longer amortization periods and with access to programs such as the 5% Down Program buying a home is not as daunting of a task as it may seem.
If you are currently renting in Toronto, compare your rental payment to the monthly amount you would pay if you owned a home or condo. When determining your monthly expenses don’t forget to take your mortgage payments, monthly maintenance fees, and taxes into consideration. After doing the calculations you may find that it is more affordable to buy rather than rent.
When buying real estate in Toronto, don’t forget to take into consideration that there are additional costs to the transaction other than the purchase price itself. Put aside some additional cash for the following expenses:
1) Lawyer fees – closing fees and title insurance.
2) Land transfer fees: Toronto Land transfer tax and Ontario Land transfer tax (for purchases only).
3) Moving expenses – cost of hiring movers and a moving truck
4) TV, Phone, Internet etc set up.
5) Home insurance
As a first time home buyer there are a few incentive programs that you can take advantage of:
1) RRSP Home Buyers Plan
As a 1st time home buyer you can withdraw up to $25,000.00, from your RRSP to put towards the purchase of your principle residence (income tax free).
More info on the RRSP Home Buyers Plan here: http://crworks.com/partner/items/VX204.pdf
2) 5% Down Program
With as little a 5% down, buyers have access to Mortgage insurance enabling them to enter the housing market as long as they can manage the other costs of home ownership. Talk to your bank or a mortgage specialist.
3) Land Transfer Tax Rebate Program
First Time buyers who purchase a newly constructed home receive a rebate on the Provincial Land transfer tax up to a max of $2000. (Equivalent to a purchase price of $227,500).
More info about this program: http://crworks.com/partner/items/PB6025.pdf
4) Toronto Land Transfer Tax Rebate Program
First-time home buyers (re-sale or newly constructed) may qualify a the rebate on the Toronto Land Transfer Tax when purchasing a home in Toronto for up to $3,725 (Equivalent to a purchase price of $400,000). Some conditions apply to this rebate.