Making sure your investment is sound
Once you have an accepted offer, your agent should recommend up to 3 professionals to hire to complete the necessary inspections and duties to complete the sale process. Here a few things to keep in mind:
Home Inspection: Is highly recommended and will save you from unexpected surprises down the road. They will be able to check for any defects, structural damage, heating/cooling issues, if the home is properly insulated, roof, any leakage or drainage problems etc. They will supply you a full written report of any defects they have found and an estimate on what it would cost to fix or replace.
Home Insurance: It is highly recommended that you ensure your insurance company has coverage for the specs of the home you are planning on purchasing.
Legal Professional: It is highly recommended that you have a lawyer that is familiar with Canadian Real Estate Law to review your offer of purchase and sale, do a property title search, and ensure property taxes and utilities have been paid and that there are no outstanding judgments or liens on the property. They will be able to assist and ensure the deal closes properly.
Additional Costs to Keep in Mind:
Ontario Provincial Land Transfer Tax (PLTT):
- Up to $55,000 X 0.5% of total property value
- From $55,000 to $250,000 X 1% of total property value
- From $250,000 to $400,000 X 1.5% of total property value
- From $400,000 up X 2% of total property value
The City of Toronto levies an additional LTT on Toronto real estate in addition to the provincial rate.
Land Transfer Tax Rebates: First Time Home Buyers
If you are a first time home buyer you are eligable for rebates for both the Municipal and Provincial Land Transfer Tax:
- Municipal Land Transfer Tax (MLTT): Maximum $3725
- Provincial Land Transfer Tax (PLTT): Maximum $2000