Can You Claim Land Transfer Tax?

Land transfer tax (LTT) is a charge levied by each Canadian province when you acquire a property. It is based on the amount paid for the land and includes any amount remaining on the mortgage or debt assumed as part of the purchase agreement. This tax is determined using a specific equation and a land transfer tax calculator.

Many people wonder if land transfer tax can be claimed. If you’ve moved for work and your employer has not reimbursed you, you can claim the LTT. Also, there exists a rebate in the provinces of Ontario, British Columbia and Prince Edward Island that allows you to recoup the cost of the land transfer tax entirely.

Land Transfer Tax Rebate

In Ontario, first-time home buyers can qualify for a rebate that is equal to the full amount of the land transfer tax paid, up to a maximum of $4,000. As of January 1st, 2017, this tax rebate is restricted to Canadian citizens and permanent residents of the country. Furthermore, you must apply for the land transfer tax rebate within 18 months of the date of registration of the transfer or the date of the unregistered disposition.

Qualifying for the Ontario Rebate

There are certain criteria you must meet in order to qualify for the Ontario land transfer tax rebate. You must be 18 or older and live in the purchased home within nine months of buying it. Furthermore, you cannot have previously owned a home. If your spouse has already owned a home during the time that they have been your spouse, you will not qualify. The rebate covers the full amount of the LTT up to the maximum home purchase price of $368,250. If your home costs more than that price, you can still qualify for the maximum rebate but have to pay the remainder of the tax.

Qualifying for the Toronto Rebate

The city of Toronto has its own land transfer tax that comes with a separate rebate. The criteria that must be met are similar to that of the Ontario LTT rebate. You must be 18 or older, live in the home within nine months of purchase, and cannot have owned a home before, with the same going for your spouse (during the time that they’ve been your spouse). The maximum amount you can receive as your rebate is $3,725. You are eligible for both the Ontario and the Toronto rebates if you’ve bought property in the city. Additionally, if you are purchasing a home with your spouse, and only one of you is eligible for the rebate, you can still get 50% of the rebate amount. This goes for both the Toronto and Ontario LTT rebate.

Using the Land Transfer Tax Calculator

To determine what your land transfer tax is you will need to use the land transfer tax calculator. You’ll need the purchase price of your home and this land transfer tax calculator.

source:  northwoodmortgage.com

Canada fires drive thousands more out of their homes

MONTREAL, Canada — Thousands of people fled their homes in western Canada over the weekend as strong winds fanned forest fires that have ravaged British Columbia province for more than a week.

The inferno’s progress prompted authorities to take new emergency measures, ordering the evacuation of 24,000 people in the region including the town of Williams Lake which is home to some 11,000 people, reported public broadcaster CBC.

Some 60 percent of affected residents have already left their homes.

Authorities estimate that around 17,000 people had already evacuated before the latest orders as wild fires sparked by hot dry weather prompted a state of emergency to be declared on July 7.

Navi Saini, a spokeswoman for the province, said there were currently 161 wildfires active as of Sunday.

Further to the south, fire crews equipped with planes and helicopters in the US state of California were making steady progress against 11 active blazes fueled by searing temperatures and high winds.

“Great news! All evacuation warnings for the #AlamoFire have been lifted. There is fire equipment still in the area working – use caution,” the official account for Cal Fire tweeted.

The Whittier fire, which began on July 8 and stretched across 18,015 acres and has burned down almost 2,000 structures was 36 percent contained, according to the agency. CBB

source: newsinfo.inquirer.net

Which Province Has the Lowest Mortgage Rates in Canada?

However if you go a further east, and you can secure a five-year fixed mortgage with only 2.84% interest, if you’re purchasing in British Columbia.

Alberta, Saskatchewan, and Manitoba share the same rate as Ontario, while Quebec and all of the Maritime Provinces come in within two-hundredths under 3%.

So why is this the case? It can seem slightly confusing that there is so much variation across provinces even though 5-year fixed mortgage rates are driven by 5-year government bond yields.

The short answer is that mortgage rates don’t vary as much from province-to-province as they do from lender-to-lender.

Cait Flanders of RateHub has recently offered a little insight on the matter:

“Individual lending institutions set their rates based on what their profit objectives are, how much competition they have, and what their marketing strategy is. We’ve seen how this works on a national level, when one of the big banks (BMO) launches a new low rate before the other big banks, so they can get some press and gain a little more of the market share.”

Since a lot of small lenders and credit unions only exist in certain problems, this can make all the difference. For instance, if one credit union decides to offer a lower interest rate, it’s very likely that all small lenders in that province will be pushed to offer a similar rate.

Meanwhile, if a credit union in British Columbia lowers their rate, there’s no reason for lenders in Ontario to follow suit since they aren’t competing for the same market.

Then of course, we have the issue of supply and demand. Take Toronto or Vancouver for example, both of which are experiencing a big real estate boom. This increases competition levels, and lenders are forced by the market to offer competitive rates if they want to secure business.

On the other hand, in a small town in Nova Scotia where there are very few reliable mortgage brokers, they have more freedom to decide on their own mortgage rates.

When it comes down to it, no matter where you call home, you should always shop around for the best mortgage. Establishments like Northwood Mortgage are always the best bet for the best rates as we keep our prices competitive against both the big and little companies.

Talk to one of our team members today and see the difference Northwood can make!

source: northwoodmortgage.com