John Cocomile

I had a debate with a realtor friend the other day....

If you are a first time homebuyer and buying a home in TORONTO, there's a substantial land transfer tax rebate available (up to $5,750, depending on the purchase price). The question is....how is this rebate obtained?

Do "first timers" have to front the entire land transfer tax amount, and then apply and wait for the rebate? Coming up with an extra $5,750 at the time of closing can be difficult, especially for a young couple buying their first home. When and how is the application for rebate submitted? Is it done at income tax time? Are the forms daunting? Are the delays substantial?

For fear of changing the topic....when shopping around for a lawyer, seeking out the lowest fee, many don't even think of asking if the lawyer's service (and fee) includes preparation and submission of the rebate forms. In fact, if your lawyer knows what she is doing, said rebate can be automatic and instant.

Bottom line with respect to the Toronto land transfer tax rebate....if your lawyer is on the ball, there are no forms to submit, no deadlines to meet, and "first timers" don't need to front the $5,750. The rebate can be instant.

When buying a home or condo in Toronto, we all know about the "double" land transfer tax imposed by ex Mayor David Miller. And we all know about Rob Ford's promise to get rid of it. Until it goes away (yeah right), understand that there are exemptions that you might be able to fit into. A have a client that bought a new condo...closing next month. Believe it or not, the original purchase contract for this condo was signed before the end of December, 2007. As such, the special Toronto tax doesn't apply.

See the following link to the exemption at the City of Toronto website.

In Canada, why do fixed rate mortgages continue to go down?

There's a few reasons:

1. the financial issues in Europe, and continued uncertainty in North America are resulting in uncertainty in the equities markets...in both Canada and US, the markets are down again today. This results in a flight to safety ie. bonds, which drives up the price, resulting in lower interest rates

2. the start of new year means launch of campaigns by various lenders...and they are getting aggressive!

More to come!!!!