alltorontomortgages.com Dreaming Of Buying Your First Toronto Home? Michael Pezzack, Toronto Mortgage Agent AMP*

Owning your own home is a life-long dream for most people. In addition to pride of ownership, owning a home means security. Furthermore, buying a house is a sound financial investment. However, buying a home involves a lot of complex matters you might not be familiar with, such as financing, inspections, making an offer, legal aspects and closing a deal. A good way to prepare yourself for the home buying process is by attending a seminar or workshop for first-time home buyers. One of the keys to making the home buying process easier and more understandable is clear information. You can also get all the information you need by downloading a FREE online home buyers seminar, a full 89 page manual designed to help you through the complete home buying process (click the image to open the Home Buyers Online Seminar website). Another valuable source of information is my 3D Digital Online Toronto Mortgage Book. This e-Book is a complete and detailed Mortgage Workshop that will answer most of your questions (click here for more information about this FREE e-Book and how to download it). You can make your own personal notes in this book, print the pages that are important to you, watch a small video-presentation, see enlarged examples of important documents, and much more. INCENTIVES FOR FIRST-TIME HOME BUYERS Both the government of Canada and the Ontario government have established programs to assist first time home buyers. The two best known programs are the RRSP Home Buyer's Plan and the Land Transfer Tax rebate. Home Buyer's Plan The RRSP Home Buyer's Plan (HBP) was introduced by the federal government, and allows first time home buyers to withdraw up to $20,000 from their RRSPs tax free to use towards the purchase of a home. To qualify as a first time home buyer, purchaser must not have lived in a home owned by himself or his spouse in the last five years. If both you and your spouse qualify under the Plan, you can each withdraw up to $20,000 from your RRSPs for a total of $40,000. Before you are entitled to withdraw the money from your RRSP, you must have entered into a written agreement to purchase or build a home that you intend to occupy as your principal residence. The purchase of a cottage, for example, would not qualify for this program because it is not a principal residence. Money can be withdrawn from your RRSP provided it has been in your RRSP for at least 90 days. If you have signed an Agreement of Purchase and Sale and you have at least 90 days until your closing, you can open an RRSP and make a contribution, receive the tax deferred benefit and then withdraw the same money and put it towards the purchase of your home. Money withdrawn under this federal program must be paid back to your RRSP within 15 years. People generally deposit one fifteenth of the amount withdrawn back to the RRSP over each of the following 15 years. If you do not pay the full amount back to your RRSP within 15 years, the amount outstanding will be subject to tax when you file your income tax return in the following year. What if you don't have any money in your RRSP? Do not worry, you can still take advantage of the Home Buyers Plan (HBP). If you are earning income, or have earned income in the past few years, you are entitled to contribute to an RRSP. What is not very well known about the HBP is that you can contribute to an RRSP retroactive. Therefore, check to see what your RRSP contribution limit is. It is shown on your previous years Notice of Assessment, or call Revenue Canada. Provincial Land Transfer Tax Refund In the 2007 Ontario Economic Outlook and Fiscal Review, the government proposed to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes for agreements of purchase and sale entered into after December 13, 2007. This measure was included in Bill 44, Budget Measures and Interim Appropriation Act, 2008, and, having received Royal Assent on May 14, 2008, is now law. As a result of this change, first-time homebuyers of resale homes may now be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid. To qualify for a refund: you must be at least 18 years old; you cannot have previously owned a home, or an interest in a home anywhere in the world; your spouse cannot have owned a home, or an interest in a home anywhere while he/she was your spouse. The maximum refund is $2,000 and qualifying purchasers must apply for the refund no later than 18 months after registration of the home if they do not receive the refund at the time of registration. For information about the refund, visit the website of the Ontario Ministry of Finance. Municipal Land Transfer Tax As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province's Land Transfer Tax. You may be eligible for a rebate of the MLTT if you are a first-time purchaser of a newly constructed or re-sale residential property with two or less single-family residences. The rebate for first-time purchasers is up to a maximum of $3,725.00. For information about the refund, visit the website of the City of Toronto. Buyingblock Mortgages Inc. 4-565 Bloor St. West -  Toronto M5S 1Y6  -  Reg. #4802 Privacy Policy - Terms of Use - About Us

alltorontomortgages Michael Pezzack Mortgage Consultant tel:   416-850-2642 fax:  416-850-2643 cell: 416-358-1295   toll free: 1-866-644-4613 Scott Henson Mortgage Consultant tel:  647-238-8232 fax: 416-850-2643   toll free: 1-866-644-4613