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Links + Tips for First Time Buyers

Updated: Mar 8, 2018

There’s a lot to know when it comes to buying your first home. I wanted to share some important links and information to make your life a little easier :) Read, learn, and ask questions.

As a first time home buyer, it’s important to realize early on what your costs will look like at the end of the transaction. I’d like to share a few links and tips for you to make sure you’re getting a full understanding of what’s involved, what incentives you’re entitled to, and some of the costs incurred when buying your first property.


Land Transfer Tax (LTT) Government Program

LTT is paid when you buy land, or interests in land. First-time buyers of brand new or resale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes.

  • Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.


Land Transfer Tax Calculator

How do you know how much LTT you’re expected to pay? Land transfer tax is calculated on based the value of consideration as defined in the Assessment Act. The value of consideration means the gross sale price or amount. It includes the purchase price, liabilities assumed, benefits conferred, soft costs and the cost of upgrades. In some cases, the value of the consideration is deemed to be the fair market value of the land.

  • Here’s a helpful link via the Toronto Real Estate Board that will give you some insight on how much LTT will be paid based on the value of a particular property.

Property Tax Calculator

Imposed by the city, property taxes are used for public purposes. Local governments use property tax to pay for services such as roads, parks, police, fire fighting, ambulance and transit. Every year the government mails tax notices to each assessed owner listed on the assessment roll. MPAC assesses the value of property across Ontario. Typically, your property taxes are determined by your municipality, based on your property value, the applicable municipal tax rate(s) and education tax rate.

  • If you already own property, this tool can be used to give you a breakdown of how your property tax dollars are being allocated. Pretty cool, huh?

Canada Housing and Mortgage Corporation

CMHC helps Canadians meet their housing needs. They offer objective housing research and advice. Among this and other things, CMHC provides mortgage insurance for buyers who otherwise might not be able to buy a home. Mortgage insurance is mandatory in Canada when your down payment is less than 20 per cent of the value of the mortgage. CMHC provides mortgage insurance to protect the lender against the risk of a default, and as a result, lenders are willing to provide mortgages to buyers that otherwise might not qualify. Mortgage insurance insurance provided by CMHC protects the lender and thereby allows you to provide a lower down payment when you buy a home.

  • Take a browse through their website for a list of all services and information.

Book a free one-on-one consultation to have all your home buying questions answered.

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Kim Wolfshout, sales representative

Century21 Leading Edge Realty Inc

647 966 7078 | kwolfshout@gmail.com

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