Friday, November 30, 2007

TD/Canada Trust Rolls out new plan to help cover Toronto Land Transfer tax on mortgages until March 21, 2008

This is in response to the Toronto Land Transfer Tax

Toronto's comfortable mortgage now at TD Canada Trust: bank will cover the Toronto land transfer tax on mortgages until March 21, 2008

Homebuyers have until March 21, 2008 - No requirement to have a current account with TD Canada Trust - Choice of two mortgages available

TD Canada Trust announced today that it will cover the new City of Toronto land transfer tax on behalf of its customers when they arrange a mortgage between November 22, 2007 and March 21, 2008.

In response to the City of Toronto's increase to the land transfer tax, TD Canada Trust will provide up to 1.50% of the mortgage amount in cash to cover this expense for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years.

Homebuyers do not have to have a current account with TD Canada Trust in order to be eligible for this offer.
Who's eligible?:
  • Those who arrange and fund a 5 year Special Fixed Rate Mortgage or a 7 Year Special Fixed Rate Mortgage between November 22, 2007 and March 21, 2008.
  • Those purchasing Toronto properties which were affected by the new City of Toronto Land Transfer Tax
"We're very pleased to be able to provide this limited time offer to those who are buying a home in Toronto between now and March 21, 2008," said Joan Dal Bianco, Vice President, Real Estate Secured Lending, TD Canada Trust. "We know that our offer means one less thing to worry about and will help take the pressure off of purchasing for homebuyers impacted by the land transfer tax increase."

The offer is not available in conjunction with any other offers and the maximum cash amount is $15,000.

Mark's comments: I am guessing that you would not be eligable for any mortgage interest rate discounts if you take advantage of the above deal. I will check into this and re-post if there is a change.

Read more about Toronto Land Transfer Tax and use an online calculator

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thursday, November 29, 2007

How to make money in real estate in the GTA

There is one sure way to make money in real estate in our area of the GTA, buy a property, rent it out, hold it for at least 4 to 5 years.

Not only will you gain as your mortgage principal amount decreases during that time period as the the tenant is paying down your mortgage you also get to enjoy the increase in value of the property over time = profit.

It really is as simple as that.

All the Best!
Mark

The pros and cons of owning real estate

Read about my personal story of how to get that mortgage paid off quicker.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Wednesday, November 28, 2007

Our Housing Market Continues to Boom in spite of Recent Economic and Financial Developments



Our Housing Market Continues to Boom under Recent Economic and Financial Developments


In late October the Bank of Canada published its Monetary Policy Report. It was noted, in that document, growth in the Canadian economy has been stronger than projected, supported by the robust global economic expansion and strong commodity prices. Canada's economy is now operating further above its production potential than had been previously expected.

With the economy moving back towards balance, and with the direct effect of the stronger Canadian dollar on consumer prices, core inflation is projected to gradually decline to 2 per cent in the second half of 2008. Total CPI inflation is expected to peak at about 3 per cent later this year and then move back down to the 2 per cent target in the second half of 2008.

But there are a number of upside and downside risks to the Bank's inflation projection. The main upside risk is that excess demand in the Canadian economy could persist longer than projected. The main downside risk is that output and inflation could be lower if the average level of the Canadian dollar were to be persistently higher than the 98 cents U.S. level that was assumed in the Report, for reasons not associated with demand for Canadian products. Given recent information, both the upside and downside risks appear to be greater than they were when we completed the Report.

In the Report, it was stated that after considering all factors, a judgment was made that the risks to the Bank's inflation projection are roughly balanced, with perhaps a slight tilt to the downside. And, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term.

The Canadian and U.S. economies remain highly integrated, and there is every indication that our economic ties will remain strong. But developments in the global economy and the growing prominence of emerging economies have important implications for policy-makers on both sides of the border.

It is important that policy-makers heighten their focus on the need to promote and enhance flexibility. Our economies must be able to adjust to changing circumstances. If we are successful in this effort, not only will both the Canadian and U.S. economies be able to deal with economic shocks, but we will also be able to sustain strong economic performance in North America. And that is the best outcome for Canadians and Americans alike.

Read more about GTA and Ontario Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale



Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,



Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com



Tuesday, November 27, 2007

RBC believes the Bank of Canada will hold rates steady over the next while

Bank of Canada to hold rates steady; C$ strength to slow growth

Healthy job gains and escalating wage growth this year are providing strong support for consumer spending, with real retail sales running 5.3% faster, on average, than in the same period last year. However, strong jobs gains, rising wages and the strong housing market will keep the Bank of Canada worried that fast-paced household spending will push the economy further into excess demand.

The continued deterioration in the U.S. housing market and the sky-high Canadian dollar are inflating the downside risks to the outlook for Canadian exports. Canada's dollar will likely continue to appreciate into early 2008, leading to softer demand for Canadian exports and resulting in the trade sector acting as a more significant drag on growth. We expect the Bank to cut the overnight rate by 25 basis points in the first quarter of 2008 and have adjusted our forecast for Canadian interest rates downward accordingly.

Interest rates are expected to trade at the low end of their recent range, ending the year at 4.10% for two-year yields and 4.25% for 10-year yields. In early 2008, a 25 basis-point cut in the overnight rate to 4.25% is likely to see short-term rates move modestly lower.

Our expectation that the U.S. economy will reaccelerate in the second half of 2008 will likely see the U.S. dollar regain ground against its major trading partners, with the Canadian dollar likely to drift back down through parity. This will take some of the sting out of the trade sector's bite on Canadian growth and will give the Bank room to reverse its early 2008 rate cut.

We still expect interest rates in Canada to grind higher in the second half of 2008 but have trimmed back our forecast to 4.5% for two-year rates (from 5.00%) while maintaining our previous forecast of 5.05% for 10-year rates at year-end.

read more about Historical Mortgage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Monday, November 26, 2007

10 tips for new home buyers in Ontario

10 tips for new home buyers

(NC)-While Ontario's new home market continues to ring up healthy sales, as a new home buyer you want to make sure you've made the right decision. Buying a home is the single biggest purchase most of us will ever make and, as with most important purchases, it is vital to do your homework to ensure your new home fits your lifestyle and meets your expectations.

An important part of this preparation process is to learn more about all the benefits and resources available through Tarion Warranty Corporation, a private corporation established in 1976 to provide protection for all consumers who purchase a new home or condominium in Ontario. Tarion does this by licensing and regulating Ontario's home builders and managing a guarantee fund to ensure that consumers receive the new home warranty coverage they are entitled to by law. Tarion has provided the following tips to help guide new home buyers through the purchasing process.

1. Choose the type of home that meets your lifestyle

Read the real estate section of your local paper for information about new developments. Also, check out builders' websites for photos and floor plans.

2. Determine what you can afford

Once you've chosen the location and type of home that fits your needs, meet with a financial representative to determine a mortgage amount that you can comfortably afford. This ensures that you spend your time wisely on homes within your price range. You should also consider getting a pre-approved mortgage, which will allow you to shop with added confidence.

3. Research your builder

A simple call to 1-877-9TARION or a visit to www.tarion.com will give you access to information about all registered home builders in Ontario, including their customer service record with Tarion. When you find a builder you like, talk to them about previous developments, and go straight to the source by asking current homeowners questions about their homes and neighbourhoods.

4. Attend educational seminars

These useful seminars are designed to help you learn from industry professionals about the new home buying process and the statutory warranty protecting all new homes built in Ontario. Visit the Tarion website for more information.

5. Talk with a real estate lawyer

It's important that you meet with a real estate or condominium lawyer before signing an Agreement of Purchase and Sale to make sure you understand exactly what is and is not included in the price of your new home.

6. Read the Homeowner Information Package

Take the time to review Tarion's Homeowner Information Package, which your builder will give to you before or during the pre-delivery inspection for your new home. This brochure, which is also available at www.tarion.com, explains your new home's statutory warranty, and the responsibilities of both you and your builder.

7. Prepare for your Pre-Delivery Inspection (PDI)

Be prepared for the pre-delivery inspection (PDI). It's your chance to do a thorough inspection of your new home to identify any items that are incomplete, damaged, missing or not operating properly, and have them taken care of before you move in. This is also a prime opportunity to ensure that everything has been built according to your Agreement of Purchase and Sale.

8. Become familiar with the new home statutory warranty and submit forms on time

You can familiarize yourself with the statutory warranty online by visiting www.tarion.com. Here, for example, you'll find out more about what is and what isn't covered by the warranty as well as the timelines and procedures to follow should a warranty-related item need attention in your new home. Tarion will only accept and act on Statutory Warranty Forms that are submitted on time.

9. Maintain your home through the seasons

You've made a big investment in your home, so you should take care of it year-round. It's important to remember that ongoing maintenance helps to ensure that your statutory warranty is protected. So, after you've moved in, follow an annual maintenance routine and help keep your new home in top shape.

10. Enjoy all your new home has to offer

You've done a lot of research, decision-making and waiting by the time your reach this point. Now it's time to enjoy all the wonderful things your new home has to offer.

More information for new home buyers is available online at www.tarion.com.

Credit: www.newscanada.com

Read more about Buying your home

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Friday, November 23, 2007

A fear of the unknown - stop avoiding your personal finances


A fear of the unknown - stop avoiding your personal finances



(NC)-Given the choice, would you rather visit a dentist or a financial planner?

According to a study conducted by BMO Mutual Funds, half of Canadians surveyed would rather visit the dentist, even though roughly the same number have never even met with a financial planner.

"When it comes to our personal finances, Canadians have generally taken the avoidance route - it's like a fear of the unknown," says Linda Knight, Chief Operating Officer, BMO Mutual Funds. "Our studies show that we spend more time planning for home renovations and exercising than planning our retirement. But in reality, taking control of our finances today can lead to big rewards down the road."

To help Canadians get over their fear, Knight dispels the common myths that keep people out of the financial planner's office:

1. You have to be wealthy to meet with a financial planner

Regardless of your take-home pay, it's never too early to start investing your hard-earned money. In fact, once you start earning a regular pay cheque - regardless of the amount - you should meet with a financial planner to discuss investment options. Best of all, you can meet with an investment professional at no charge at any BMO Bank of Montreal branch.

2. You have to know the difference between a mutual fund and a GIC

Don't let your fear that you're not financially savvy prevent you from seeking advice. A good financial planner will act as a guide, informing you of your options and answering your questions.

3. You're in debt and you're going to be lectured about poor financial management

The first thing to know is that you are not alone. However, if you do have debt, it's important to address it now to manage the impact it can have on your future. Whether your plans for the next five years include buying a house or starting your retirement, a financial planner can help you develop a strategy to lower your debt and help achieve your goals without completely compromising your lifestyle.

"Canadians need to face their fear head-on and take control of their finances sooner rather than later," says Knight. "Once they start on the road towards managing their finances they'll see that it's not so intimidating after all." Credit: www.newscanada.com

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com








Thursday, November 22, 2007

Buyer pays US$25,391,021 for a Penthouse Suite at 1 Bloor St. E. in Toronto


This could be the most expensive condo in Canada! The buyer paid a whopping $25,391,021.73 US or only $25,000,000 Canadian dollars at November 22nd conversion rates! :-)) at the new building going up at 1 Bloor Street East.
'If you open your eyes underwater, you get a view of the city'
ROY VARACALLI, architect, on the unique infinity pool that sold a Hong Kong businessman on a $25 million suite

A Hong Kong businessman is Canada's newest King of the Castle – and he didn't even have to stand in line to buy his $25 million penthouse suite.

The unidentified buyer set a new benchmark for the country's priciest slice of downtown residential real estate this week when he bought the 7,500-square-foot suite at One Bloor East.


Toronto's newest fashionable address was the site of real estate mayhem when more than 100 brokers lined up, or hired others to stand in line for them, in the cold for more than a week for a chance to buy suites scheduled to open in 2011.

The building's 592 units were such a hot commodity that shoving matches broke out between irate brokers wanting to be first through the sales room door.

Architect Roy Varacalli says the penthouse takes up the entire 80th floor of the $450 million skyscraper, giving its owner an "absolutely spectacular" 360-degree view of the city.

If the buyer closes the deal within the prescribed 10 days, he'll trump Toronto billionaire Alex Shnaider, who revealed in August he plans to keep what he thought was Canada's priciest condo – valued at $20 million – in the Trump International Hotel & Tower he's helping finance.

But Shnaider said at the time his mansion-in-the-sky could be as big as 14,000 square feet, dwarfing the One Bloor East penthouse.

Varacalli said the One Bloor East buyer was sold when he heard the unit will have a 12-foot-by-20-foot indoor infinity or "vanishing edge" pool. The pool's infinity edge runs right up to a floor-to-ceiling plate glass wall at one side of the building.

"If you open your eyes underwater, you get a view of the city," Varacalli added. "The buyer got wind of it and he wanted it."

When the building opens, slated for 2011, the sky-high suite will be loaded with high-end features including an elevator that opens right into the penthouse foyer and a private outdoor garden.

It is also to have five outdoor terraces, with in-floor radiant heat to melt snow. The kitchen is the last word in ultra luxury, with a Cambrian stone top island, six-burner in-line gas stove, champagne pantry, steam ovens, under-counter crispers and a walk-in wine cellar. For party time, there is a separate caterer's kitchen.

The suite has three bedrooms, a library, music room, family room, nanny's quarters, floors made of wood, marble and limestone and 12-foot ceilings. It even has a cold room for fur storage.

And no close quarters at the bathroom sink here: the suite sports his-and-hers ensuite master baths.

Hers has a steam shower with heated floors and walls, a fireplace, wine fridge, lounge area and Agape soaker tub from Italy, made of stone and Corian, that fronts a solid glass wall.

"It's placed in front of a window so you can sit in it and look down on the rest of us plebs," Varacalli laughed. "It's pure opulence."

It will be One Bloor East's biggest, but not its only, penthouse.

The top three floors are set aside for top-of-the-heap suites. The two penthouses on the 79th floor have been the subject of $9.5 million offers.

Down on the 78th floor, three penthouses are still on offer for a mere $5.5 million to $6.5 million.

Interiors will be by Andrea Kantelberg, Toronto's top eco-designer, and feature sustainable green materials throughout.

The exterior, which has distinctive "wings" at the top, is designed with a unique sliding balcony-door system that reflects light and changes the appearance of the building depending on how the owners position them.

"What is interesting is that this puts the residents in charge of the design," Varacalli said.

Trump Tower currently claims to have the tallest condo spire on the drawing board, at 281.88 metres spread over 57 storeys. One Bloor East is to have the same number of stories in a slightly smaller package at 276 metres.

Aura, another condo project that was launched yesterday, is forecast to reach 243 metresVaracalli does nothing to tone down the edifice complex when he notes the Trump Tower gets some height from "that silly antenna on top."

He then jokes he'll extend the wings at his tower so it hits 282 metres.

One Bloor East's developer, Bazis International of Kazakhstan, has held back about 100 of the building's apartment suites for sale next weekend.

Apartments start at 585 square feet. The first three storeys are to feature retail space, with floors above that to include common areas and hotel rooms.

When the lineups started two weeks ago, suites were listed on a billboard at prices from $300,000 to $2 million.

By the time the sales office officially opened Wednesday, a new sign showed prices had inflated to $500,000 to $8 million.

The $25 million super suite was not among those put on offer to the queuing public.

While the price may seem crazy to many, Toronto isn't world class when it comes to superluxury condos.

Four 20,000-square-foot units at One Hyde Park in London, England, are rumoured to be up for grabs at $160 million each. There is talk that one has already sold.

Forbes.com reports that financier Martin Zweig owns the most expensive condo in the U.S., a $70 million penthouse perched atop New York City's landmark Pierre Hotel, overlooking Central Park.


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate



Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


CREA announces that the Federal Bank rate in Canada holds steady and could be coming down in the next month


CREA Article Bank rate in Canada holds steady in September
Spillover from sub-prime loans


The Bank of Canada kept its benchmark overnight lending rate steady at 4.5 per cent on October 16th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 4.75 per cent.


The Bank announcement indicated that economic growth has been stronger than previously expected, but will slow next year by more than it projected in July. It emphasized that weakening exports are anticipated to be drag on Canadian economic growth due to slowing U.S. economic growth and a stronger Canadian dollar.


The Bank also said that Canada's domestic economy remains strong, but that weaker economic growth next year will cause inflation to ease back to the two per cent mid-point of its inflation target. The Bank of Canada sets interest rates in order to contain inflation at between one and three per cent.


In line with its new forecast for economic growth and inflation, it said "the Bank judges, at this time, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term."


"Financial markets widely anticipated the decision by the Bank of Canada to hold interest rates steady," said CREA Chief Economist Gregory Klump. "For the second time in as many months, the Bank made no mention of the need for further interest rate increases. This provides a signal that further interest rate increases are on hold until the outlook for economic growth becomes clearer." The next rate announcement is scheduled for December 4th.


When the Bank decided to hold interest rates steady on October 16th, the advertised conventional five-year conventional mortgage rate stood at 7.19 per cent – up 0.24 per cent over the peak reached last year. Competition among mortgage lenders remains stiff, which continues to help many borrowers negotiate discounts of one per cent or more off advertised rates.


An increase in interest rates was factored into the CREA MLS® 2007 market forecast issued in August. "Sales broke all previous records in the first eight months of 2007, which will push annual MLS® home sales activity to new heights this year and reach the second highest level on record next year. Prices are also forecast to continue rising over the next two years," Klump added.


Source: Canadian Real Estate Association (CREA)


See the current Mortage Interest Rates


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com




Wednesday, November 21, 2007

RBC thinks financial market volatility will persist into early 2008

Fed signals steady rates for now; Bank of Canada to stay on sidelines

We are calling for the U.S. economy to grow by 2% in the fourth quarter of this year compared to the 2.7% average rate in the first three quarters on the back of slower consumer spending and business investment as the impact of the late summer tightening in credit conditions damps activity.

Our assessment that financial market volatility will persist into early 2008 as the housing market meltdown continues suggests that investors and lenders will remain cautious and risk averse. Against this backdrop, we have revised our interest rate forecast down and now expect the Federal Reserve to cut the Fed funds rate by 25 basis points in the first quarter of 2008 to ensure that credit markets continue to function and that rates remain low enough to sustain borrowing by households and businesses.

The U.S. housing market slowdown is expected to continue unabated, with residential construction activity contracting at a doubledigit rate. However, this moderating pace of the economy will not, by itself, be enough to prompt the Fed to ease the policy rate again.

Search our GTA and Toronto housing marketplace

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Toronto new Land Transfer Tax - It's coming soon, how will this impact you?

Toronto imposes new Land Transfer Tax - What does this means to home buyers?

Small PicToronto, Ontario - After much debate for months and months, here is the new Toronto Land Transfer Tax that was just passed by Council on 22 October 2007 and takes effect on 1 February 2008. Transactions entered into prior to the end of the year will be fully exempt whenever they close. For the first two months of the year, the deals must close before February 1st 2008. After that, the full tax applies. The new tax is an addition to the existing land transfer tax. The extra tax is payable on residential and commercial property purchases, including vacant land. So how will this affect the real estate market in Toronto an surrounding areas?

EXISTING Ontario Land Transfer Tax:

Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser. Current tax rates (effective from June 1, 1989)

  • 0.5% of the value of consideration for the transfer up to and including $55,000,
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

ADDITIONAL NEW Land Transfer Tax :

New tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008).

  • 0.5% on first $55,000,
  • 1% on next $345,000, and
  • 2% on portion over $400,000

Examples of new Land Transfer Tax ($)

Home Price Ontario LTT Toronto LTT Total LTT
250,0002,2252,2254,450
350,0003,7253,2256,950
450,0005,4754,72510,200
500,0006,4755,72512,200

For first time purchasers: A rebate of up to $3,725 will apply to first-time purchasers of both new and existing homes. This means a full rebate for first-time buyers of homes valued at $400,000 or less. For example, a first-time purchaser of a home valued at $600,000 would pay land transfer tax according to the scale shown above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 would get a full rebate on the land transfer tax.

Why Toronto imposed new land transfer tax?

City of Toronto's projected revenue shortfall for 2008 budget is approximately $415 million. The city will be able to raise additional $155 million by Land Transfer tax and another $20 million by the new Toronto Vehicle ownership tax. That means a revenue shortfall of perhaps $239 million for next year's budget. This may translate into new taxes on property, alcohol, road tolls, entertainment, parking, billboards, etc.

Toronto is the ONLY jurisdiction with two home buying taxes, highest land transfer taxes in Canada and the second highest in North America.

What may happen now?

A second land transfer tax (LTT) on top of current provincial LTT, is almost 100% increase which might slow down real estate activity for short period of time only.

Home buyers will have less money for down payment, furniture, appliances or renovations. This could ultimately cost over $15,000 for an average buyer when coupled with other real estate closing costs and goods that follow home's purchase. First-time buyers will not get affected as they will NOT pay the City's new land transfer tax on first $400,000 of their property's price.

Since there is no new local home buying tax in 905 region, more buyers and investors will move out of Toronto. Real estate markets outside Toronto will grow more as many investors and buyers will move into Mississauga, Oakville, Milton, Brampton, Markham, Richmond Hill, Ajax and Pickering.

Read more about the Toronto Land Transfer Tax Link to the new Toronto Land Transfer Tax Calculator

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino P. Eng. Broker Specializing in Residential & Investment Real Estate Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS RE/MAX Realty Specialists Inc. Providing Full-Time Professional Real Estate Services since 1987 ( BUS 905-828-3434 2 FAX 905-828-2829 ÈCELL 416-520-1577 E-MAIL : mark@mississauga4sale.com 8 Website : Mississauga4Sale.com

Tuesday, November 20, 2007

It was the highest October on record for MLS® home sales

Highest October on record for MLS® home sales

OTTAWA November 15th, 2007 MLS® resale housing activity in Canada's major markets had their strongest showing in October compared to any other year on record and are on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national MLS® sales activity rebounded to 28,966 units in October 2007, up 1.3 per cent from levels recorded in September. The rebound follows three consecutive monthly declines since sales peaked in June, and reflects a rise in activity in Toronto, Edmonton, Hamilton-Burlington, Victoria, Montreal, Quebec City and Winnipeg. Higher activity in these markets more than offset sales declines in Calgary, Vancouver, Saskatoon and Sudbury.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in October compared to the same month last year. Transactions posted year-over-year gains in every month except September this year, putting activity on track for a new annual record. MLS® home sales activity for the year-to-date in October totaled 319,411 units, an increase of 8.6 per cent compared to levels for the first ten months last year. Year-to-date transactions continue running ahead of year-ago levels in nearly all major markets.

Seasonally adjusted n ew MLS® residential listings edged down 0.2 per cent month-over-month in October 2007 to 49,497 units. This is the fifth highest monthly level on record. New listings receded from their peak in Calgary, and eased to their fourth highest level in Edmonton. The decline in new listings in these markets more than offset a rise in new listings in Toronto and Montreal.

"The trend in new listings shows there is no panic selling in Canada's housing market," said CREA President Ann Bosley. "It is important Canadians understand the differences between the Canadian and U.S. housing markets, and their local REALTOR® can provide that information."

CREA's MLS® revised market forecast for 2008 indicates a gradual slowdown in the re-sale housing market nationally, but MLS® sales volume will remain at near record levels. "The MLS® residential average price is forecast to set new records in all provinces next year, but those increases will become smaller as the resale housing market becomes more balanced in 2008," Bosley added.

The monthly rise in sales activity in October 2007 caused the resale housing market to tighten a little compared to the previous month. Winnipeg, Regina and Hamilton-Burlington were the tightest of Canada's major markets in October, while Edmonton, Calgary and Windsor were most balanced.

The major market MLS® residential average price rose 10.6 per cent year-over-year to $333,544 in October the sixth consecutive month that the increase exceeded ten per cent. Average price reached the highest level on record in Regina, Saskatoon, Toronto and Montreal.

"More than half of major markets posted a monthly increase in activity," said CREA Chief Economist Gregory Klump. "By the end of next month MLS® sales activity is likely to exceed the annual sales last year."

"Negotiations still favor the seller in nearly all major markets," said Klump. "This suggests resale housing demand remains on a strong footing, and that price increases will continue to exceed overall consumer price inflation."

MLS® Major Market Residential Summary:

(Unadjusted Data)

September
2007

% change

October
2007

October 2006

e

Dollar Volume ($ millions)

9,632.5

9,408.6

2.4

9,475.3

7,963.1

19.0

Unit Sales

28,966

28,587

1.3

28,408

26,407

7.6

Average Price ($)

333,544

301,552

10.6

New Listings

49,497

49,580

-0.2

50,880

47,773

6.5

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 92,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at http://www.crea.ca/.

Read more about local GTA Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
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FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Monday, November 19, 2007

Average house prices anticipated to rise by 9.5 per cent nationally


Average house prices anticipated to rise by 9.5 per cent nationally

(NC)-A booming start to 2007 and solid price appreciations in all areas of the country have paved the way for a promising outlook for the Canadian housing market. The strong economy has fuelled consumer confidence, driving demand across the country.


"The momentum from the year's extraordinary start spilled into the second quarter, compounding typically busy spring market activity and stimulating solid price appreciations in almost all regions of the country. These conditions will certainly be an impetus characterizing Canada's real estate market through to year's end," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.


These healthy and robust conditions are anticipated to prevail throughout the year as all Canadian regions are expected to experience a rise in average house prices with double-digit gains forecasted for Edmonton, Calgary, Winnipeg and Regina in 2007. In addition, modest mid-single digit increases are expected for Central and Atlantic Canada.


The national average house price is forecast to rise by 9.5 per cent this year, passing the $300,000 mark for the first time, to $303,300. Home sale transactions are also projected to rise by eight per cent to 522,306 unit sales by the end of 2007.


What's happening in your market? http://www.mississauga4sale.com/TREBprice.htm


City Anticipated Price Change in 2007

Halifax 4.6% +
Montreal 6.0% +
Ottawa 6.2% +
Toronto 5.0% +
Winnipeg 11.9% +
Regina 13.8% +
Calgary 35.0% +
Edmonton 39.5% +
Vancouver 12.0% +

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com