Holmes Has The Answers To All Your Questions!

APRIL 2013 MARKET STATS

City/Town	New Listings	Number of Sales	Average Price
Brampton	1753	879	$421,455
Mississauga	2148	1068	$480,840
Caledon	211	109	$586,385
Orangeville	137	85	$357,794
Halton Hills	188	103	$464,547
Milton	374	235	$465,915

It May Be Time ...

to Make A Move This Year!

Greater Toronto Area reported 9,811 transactions through the Toronto MLS system in April 2013. The average selling price for these transactions was $526,335. "Despite the headwinds we have experienced in the housing market this year, April sales came quite strong in comparison to last year. As we move through spring and into the second half of 2013, the demand for homeownership should continue to firm-up relative to last year," said Toronto Real Estate Board President Ann Hannah.

"There will be enough competition between buyers in the marketplace to prompt continued growth in home prices in 2013. Expect annual average price growth in three to five per cent range this year," said Jason Mercer, TREB's Senior Manager of Market Analysis.

This is the time of year when families are most likely to make a move to ensure an easier relocation during the year.  As a result, almost every community will see an influx of buyers looking for a new home. 

Call Tracey today and let her help you find the your " house of your dreams". 

 Government Incentives for Buyers and Home Owners

Minimum Down Payment Required

A minimum down payment requirment of 5 per cent to purchase a home.  Some qualifications will apply.

RRSP Home Buyers Plan

The Registered Retirement Savings Plan withdrawl limit for the RRSP Home Buyers Plan is up to a maximum of $25,000.00 for each buyer to buy or build a home providing buyers are first time buyers.  The egilibility and repayment rules are as follows.  The money withdrawn from the RRSP must be repaid over a period of no more than 15 years to retain its tax deferred status.  The repayment starts the second year following the year the first withdrawals were made.  For example, in October 2009 a first time buyer withdrawls $24,000 from his or her RRSP to finance the purchase of a home.  Their first annual payment of $1,600.00 ($24,000 divided by 15 years) is due by December 31, 2011.  For further information, please call Tracey today.

Amortization Extended

The amortization on mortgages has been extended up to a 35 year amortization.  Some qualifications may apply.

Land Transfer Tax

Did you know that First Time Home Buyers who have never bought a home or had ownership interest in a home anywhere in the world, at any time are eligible to receive up to a maximum of $2,000.00 Land Transfer Tax Exemption when purchasing a resale or new home.  Some qualifications do apply.  Call Tracey for more information on this great program before it's no longer availalbe.   

Harmonized Sales Tax - How does it apply to Real Estate?

The Harmonized Sales Tax (HST) took effect on Canada Day July 1, 2010.   The new tax combines the former GST and PST into a single 13% sales tax.   In regards to real estate, home buyers and sellers will have to pay extra tax on services associated with the real estate transaction such as legal fees, moving costs, real estate commissions, home staging and home inspection fees.  The good news is that HST will not apply to the purchase of resale real estate, residential rents and condominium fees. 

HST New Housing Rebate Program

Purchases of newly constructed homes under $400,000.00 are not subject to an additional tax burden but, over $400,000.00 buyers are subject to the HST.  Buyers of new homes valued between $400,000.00 and $500,000.00 could claim a proportional rebate on the provincial portion of the HST up to a maximum of $24,000.00.   The good news is that buyers may be eligible to claim a rebate for a part of the HST they pay on the pruchase price of a newly constructed home or the cost of building your own home.

-  If you buy a new or substantially renovated home (including land or if you lease the land) from a builder.

-  If you or a contracter construct or substantially renovate your own home or carry out a major addition.

-  If your home is destroyed in a fire and is subsequently rebuilt. 

New home buyers can apply for a 75% rebate of the PST (Provincial part of HST) applicable to the pruchase price to a maximum of $24,000.   Call Tracey for further information.

Changes to Mortgage Insurance Rules!

As part of the Government's continuous efforts to strengthen Canada's housing finance system, the Honourable Jim Flaherty, Minister of Finance, has announced further adjustments to the rules for government-backed insured mortgages.

"Our Government stands behind the efforts of hard-working Canadian families to save by investing in their homes and their future," said Minister Flaherty. "The adjustments we are making today will help them realize their goals, build on the previous measures we have introduced to keep the housing market strong, and help to ensure households do not become overextended. As just one example, the reductions to the maximum amortization period since 2008 would save a typical Canadian family with a $350,000 mortgage about $150,000 in borrowing costs over the life of that mortgage."

The Government is announcing four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:

• Reduce the maximum amortization period to 25 years from 30 years. This will reduce the total interest payments Canadian families make on their mortgages, helping them build up equity in their homes more quickly and pay off their mortgages sooner.
• Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes. This will promote saving through home ownership and encourage homeowners to prudently manage borrowing against their homes.
• Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent. This will better protect Canadian households that may be vulnerable to economic shocks or an increase in interest rates.
• Limit the availability of government-backed insured moetgages to homes with a purchase price less than $1 million.

"Investing in a home is a great way to save," said Minister Flaherty. "That is the dream that mortgage insurance was intended to support. The measures we are taking today maintain that intended purpose."

Minister Flaherty said the new rules will take effect on July 9, 2012. 

 Contact Tracey for more information!

Nick Tavernese,

Mobile Mortgage Specialist 

Residential Mortgages, Greater Toronto Region                                                   

Royal Bank of Canada                   

Tel:  905-840-1569

Fax: 416-352-1398

Cell: 416-573-2641

Or feel free to email Nick anytime at: nick.tavernese@rbc.com

With Tracey's help, they found their dream home.  With mine, they found the right financing.  Let's create the "house of your dreams"

Nick Tavernese