Zeny Maninang

Sales Representative

*25 Years Experience

* Gold Award, 2008

* President's Award, 2007

*Emerald Award, 2005, 2004

* Platinum Award, 2006,2003

HomeLife/Bayview

Realty Inc.

Real Estate Brokerage

Independently Owned & Operated

505 Highway 7 East Suite 201, Thornhill, Ontario

L3T 7T1

Office:

(905) 889-2200

Toronto Line:

(416) 324-2822

Email:

info@sellhomestoronto.com

COMMUNITIES

GOVERNMENT SITES

SCHOOLS

MOVING

INFORMATION

HOMELIFE BAYVIEW

Property listings

are available in the

following websites:

MARKET WATCH

USA PROPERTIES & OTHERS

RRSP, HBTC, GST REBATE, LAND TRANSFER TAX REBATES,

5% DOWN PAYMENT, CMHC

RETIREMENT SAVINGS PLAN HOME BUYER'S PLAN

The Home Buyers' Plan (HBP) is a program under which you can, generally, withdraw up to $25,000 from your Retirement Savings Plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.

If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $25,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.

Details

Up to $25,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples -- including common-law -- will be able to withdraw up to $50,000.
You have to meet the first-time buyer's condition. You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of residence in the past 5 years. To determine past 5 years, the 4 years preceding the year you make your withdrawal plus the period in the year you make your withdrawal ending 31 days before your withdrawal is the rule adopted.
Home buyers withdrawing funds do not have to pay income tax on the amount withdrawn, as long as the funds are repaid into an RRSP in the future.
The 15-year repayment period will begin in the second calendar year following the calendar year in which the withdrawal is made. In addition, a qualifying home must generally be acquired before October 1 of the calendar year following the year of withdrawal. For example, those making withdrawals under the plan in 2000 will have until October 1, 2001 to acquire a qualifying home and their first annual repayment will be due by the end of 2002 or the first two months of 2003.
A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made. Consequently, to get the normal tax break for a contribution and to use those funds under the plan, the money must be in your RRSP for at least 90 days before a withdrawal is made.

You can participate in the HBP more than once if:

Your HBP balance for your previous participation is zero on January 1 of the year you want your new participation in the HBP to occur; and
You meet the first-time buyer's condition and all other HBP conditions that apply to your situation.

Existing homeowners can use the HBP to purchase a more accessible home or a home for a disabled dependent relative where the individual withdrawing the funds:

Qualifies for the disability tax credit (DTC) and is buying a home that is more accessible for the individual or is better suited for the care of the individual;
Is related to a disabled individual who qualifies for the DTC and is buying a home for the benefit of the disabled individual that is more accessible for, or better suited for, the care of the disabled individual, or;
Is related to a disabled individual who qualifies for the DTC and is withdrawing an amount for the disabled individual to buy a home that is more accessible for, or better suited for, the care of the disabled individual.

For more information call 1-800-959-8281 or visit Revenue Canada's web site here.

RRSP HOME BUYER PLAN REQUIREMENTS

FIRST TIME BUYER:
You must be a first time home buyer or you (or your spouse or common law spouse) must not have owned a home that you occupied in the last five (5) years. Provided you satisfy all requirements, you may re-activate the program. Before withdrawing RRSP funds, you must have a written agreement to purchase a home.

PRINCIPAL RESIDENCE:
You must use the home as your principal residence in Canada within one year of completing the purchase.

ANY HOME (NEW OR RESALE):
The home can be new from the builder or resale.

NO MONEY OWED FOR PRIOR RRSP BORROWINGS:
At the time of the RRSP withdrawal, you must NOT owe any money to your RRSP for a prior borrowing from RRSP to buy a home.

90 DAY DEPOSIT:

R.R.S.P. funds must have been on deposit for at least 90 days before they can be used under the program.

WITHDRAW RRSP WITHIN 30 DAYS OF COMPLETING HOME PURCHASE:
RRSP funds cannot be withdrawn later than 30 days after the house purchase is completed and if multiple withdrawals, they must be made in the same calendar year or in January of the next year.

FUNDS FOR ANY USE:
The funds can be applied to the downpayment, land transfer tax, legal fees and disbursements, improvements to the home, even furniture and appliances.

MAXIMUM $25,000 PER BUYER
You can borrow up to a maximum of $25,000.00 from your R.R.S.P. tax free. Maximum for two spouses (or any 2 buyers) is $50,000.00. Any such qualified withdrawal from RRSP is not subject to tax at time of withdrawal.

PAY BACK:
After an initial grace period of the year in which the withdrawal was made (plus one more full calendar year), you are required to pay back the funds borrowed (beginning in the second year following the year of withdrawal) over a period of 15 years by depositing 1/15th of the amount withdrawn, annually to your R.R.S.P. Prepayments are allowed at any time without penalty. However, if you miss a payment for any given year, you will not be allowed to pay it back and it will be included in your taxable income for that year. If a person paying back dies or becomes a non-resident or becomes 70 years of age, additional repayment rules apply.

Five Per Cent Down Payment Program

What are the General Requirements to Qualify for Homeowner Mortgage Loan Insurance?

The home is located in Canada.
You will typically have a down payment of at least 5% of the purchase price of the dwelling, depending on the dwelling type.
- Single-family and two-unit dwellings (5% minimum down payment)
- Three- or four-unit dwellings (10% minimum down payment)
Normally, the minimum down payment comes from your own resources. However, a gift of a down payment from an immediate relative is acceptable for dwellings of 1 to 4 units. For eligible borrowers, additional sources of down payment, such as lender incentives and borrowed funds, are also permitted. Check with your lender for qualifying criteria and availability.
Your total monthly housing costs, including Principal, Interest, property Taxes, Heating (P.I.T.H.), the annual site lease in the case of leasehold tenure and 50% of applicable condominium fees, shouldn’t represent more than 32% of your gross household income (Gross Debt Service (GDS) ratio). Use the GDS form to calculate how much you can afford in housing costs to be eligible.
Your total debt load shouldn’t be more than 40% of your gross household income. The Total Debt Service (TDS) ratio is your P.I.T.H. + the annual site lease in the case of leasehold tenure and 50% of condominium fees (if applicable) + payments on all other debt / gross annual household income. Add up your costs and determine your Total Debt Service ratio using the TDS form.
You also need to think about closing costs (for example, legal and land transfer fees) equivalent to 1.5% to 4% of the purchase price. Many first-time buyers are surprised by these costs. That is why, when qualifying for CMHC’s Mortgage Loan Insurance, our Home Purchase Cost Estimate worksheet form will help you calculate your total homebuying costs.

Closing costs include but are not limited to one-time items such as lawyer fees, GST and PST as applicable, land transfer tax if applicable, adjustments, etc., to allow you to complete the house purchase.
Other requirements may apply and are subject to change. For details, please contact your lender or mortgage broker.

GST New Housing Rebate Program

GST REBATE:
THREE TYPES WHEN BUYING FROM A BUILDER

NOTE: GST does NOT exist for resale homes and is only applicable when buying a new home from a builder.

GST GOVERNMENT REBATE (typically assigned by buyers to builders where GST is included sale price)

The GST government rebate applies to new homes purchased from a builder which are to be used as a primary place of residence for the purchaser or an immediate family member as defined by the governing rules. Purchasers of new homes priced up to $350,000.00 may qualify for the maximum rebate of $8,750.00 or 36 per cent of the GST paid on the purchase price, whichever is less. For homes priced at more than $350,000.00 (but less than $450,000.00), the rebate gradually reduces to no rebate for homes selling for $450,000.00 or more.

NOTE: The rebate is almost always assigned directly to the builder(as referred to in the fine print of most builder sale agreements) since GST is typically included in the purchase price; therefore, the GST rebate is not a practical consideration for most purchasers unless the purchaser is paying GST in addition to the purchase price.

WATCH OUT: for projects on the subway line with small apartments (primarily one bedrooms) which are marketed by the builder primarily towards the investor purchaser (rather than an intended owner/occupier type of buyer). In some of these projects, the GST Rebate (that would usually be obtained by the builder directly from the government in a typical owner-occupied project) will be paid by the purchaser investor to the builder in addition to the purchase price as a closing adjustment. In such an event, or in any case when an investor does not qualify for the GST rebate to be paid directly to the builder (having been assigned to the builder by the purchaser as stated in the terms of the purchase agreement with the builder), the purchaser investor may apply for a return of the "lost" GST rebate (which will be paid to the builder by the buyer as a closing adjustment). Such an application form for a GST rebate refund can be obtained by phoning 1-800-959-2221 and ask for the GST rebate refund application form #524 and explanatory booklet #RC-4231.

The following chart shows how to calculate the GST New Housing Rebate for new homes.

Purchase Price	Rebate Calculation
$350,000 or Less	$8750 or 36% of the GST paid, whichever is less
$350,000 to $450,000	$8750 X ($450,000 - Price)/100,000
$450,000 or more	No Rebate

GST TRANSITIONAL REBATE (MAY 2006) - ( 7% TO 6%)
On May 2, 2006, the government of Canada announced a reduction to the GST from 7% to 6%. As a result, purchasers of newly constructed dwellings who executed the Agreement of Purchase and Sale with the builder on or before May 2, 2006 AND where possession AND ownership of the dwelling takes place after July 1, 2006 are entitled to a Transitional Rebate representing the 1% reduction less any applicable GST rebate credited to the purchaser on the statement of adjustments. GST transitional rebate forms (being form GST193E) can be accessed at Canada Revenue Agency’s website www.cra-arc.gc.ca
GST TRANSITIONAL REBATE 2008 - (6% TO 5%)
The further reduction in the GST from 6% to 5% entitles a purchaser who executed a builder agreement before October 30, 2007 AND where possession AND ownership takes place after January 1, 2008, to a transitional rebate of the 1% reduction.

NOTE: A purchaser who signed the builder purchase agreement on or before May 2, 2006 and where possession and ownership take place after January 1, 2008 is entitled to both rebates. The same transitional rebate form is used (form GST193E) accessed at Revenue Canada’s website www.cra-arc.gc.ca for either GST transitional rebates or for both together.

For additional questions on the GST rebate program, call Revenue Canada's toll-free-enquiry service at 1-800-565-9353 or contact your Revenue Canada tax services office listed in the blue pages of your telephone book. You can also click here to access their website.

ontario land transfer tax rebate program

First-time home buyers who purchase a newly constructed home will receive a rebate of the Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum LTT rebate is $2,000.

Details
The 1996 Ontario Budget announced a special one-year provision to the LTT that was renewed every year and is now a permanent program. FIRST-TIME BUYERS who purchase a NEWLY CONSTRUCTED HOME will receive a rebate of the LTT. All other buyers will continue to pay the full applicable tax.
The maximum rebate is $2000. If an individual owns less than 100% interest in the newly-built home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.
A rebate of $2,000 is equivalent to the LTT payable on a purchase price of $227,500 (net of GST).
Only individuals who are at least 18 years of age, have not (or spouse) previously owned an interest in a home anywhere qualify for the rebate.
Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the LTT do not qualify.

A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:
.5% on amounts up to and including $55,000;
+1.0% on the amount exceeding $55,000 up to and including $250,000;
+1.5% on amounts above $250,000 up to and including $400,000 for residential / +1.5% on the amount in excess of $250,000 for business properties;
+2.0% of the amount in excess of $400,000. [residential only]

These four portions added up together total the LTT payable. A simple formula is as follows:
**Purchase Price	Calculation of LTT
$0 to $55,000	.005 x purchase price
$55,001 to $250,000	(.01 x purchase price) minus 275
$250,001 to $400,000 (residential) $250,001 plus (business)	(.015 x purchase price) minus 1525
$400,001 plus (residential only)	(.02 x purchase price) minus 3525
** If the purchase price falls within this range, then apply the appropriate formula to the purchase price. For example on a $200,000 property, the LTT calculation would be [(.01 x $200,000) minus 275 = $1725].

For more information call the Ontario Finance Ministry at 1-800-263-7965 or click here to access their website.

ONTARIO LAND TRANSFER TAX CALCULATOR

toronto land transfer tax calculator

TORONTO LAND TRANSFER TAX APPROVED *REBATE TLTT*

December 14, 2007 -- The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect.

Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.

Details

According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and

First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

More Information

Complete details of the Toronto land transfer tax are available by calling the City of Toronto at 416-338-0338.

CMHC Purchase Plus Improvements

Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.

Details
The insured loan will be based on the lower of:
The purchase price plus the actual cost of improvements, or,
The "as improved" market value. Prior to approval, CMHC will determine the market value of the property after renovations/improvements. The lending value will not exceed the market value of the property after renovations/improvements.

Applicants must have the following:
A minimum of 5% down payment of total cost (purchase price plus renovations/improvements)
Cost estimates for renovations/improvements
Qualifications to obtain a CMHC-insured loan through an approved lender.

Example:

Purchase Price	$100,000
Renovations/improvements costs	$25,000
Total cost	$125,000

Lending Value	$125,000
Maximum Mortgage (95%)	$118,750
Mimimum 5% down payment	$6,250
* Where the loan-to-value ratio is greater than 90%, the maximum house price including the cost of improvements is $250,000 in Toronto.

For more information call CMHC at 416-221-2642 or click here to visit their website.

HOME BUYERS' TAX CREDIT (HBTC)

1. What is the Home Buyers' Tax Credit (HBTC)?

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

they acquire a qualifying home; and
neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

4. What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

5. If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.

6. My friend and I intend to purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?

Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.

7. Do I have to register the acquisition of the home under the applicable land registration system?

Yes. The individual's interest in the home must be registered in accordance with the applicable land registration system.

8. Who is considered a person with a disability for purposes of the HBTC?

For the purposes of the HBTC, an individual eligible for the Disability Tax Credit (DTC) is one for whom an amount can be claimed under the DTC for the year in which an agreement to acquire the home is entered into, or could be claimed if costs for an attendant care or care in a nursing home were not claimed for the [Medical Expense Tax Credit].

9. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

10. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the CRA.

11. Is the HBTC connected to the existing Home Buyer's Plan?

No. Although some of the eligibility conditions for the HBTC and the Home Buyer's Plan are similar, they are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyer's Plan.

12. Where can I get more information about the new HBTC?

The CRA encourages taxpayers to check our Web site often - all new forms, policies, and guidelines will be posted here as they become available.

Documents are also available immediately at Department of Finance's Budget 2009 for details.