This is an excellent Land Transfer Tax Calculator...also includes Toronto Land transfer tax
CLICK HERE to take you to calculator
Wednesday, February 11, 2009
Thursday, February 5, 2009
3 Year Rate Special
3 year Quick Close Special:
- 3 year fixed rate at 3.75% must close within 45 days of application date
- New deals only
- Transfers/switches included
Firstline Mortgages
Firstline Mortgages . . .Also known as: Firstline, Firstline Mortgage Company, CIBC Mortgages
Firstline Mortgages (a division of CIBC Mortgages Inc.) is one of Canada's largest financial institutions. Instead of relying on a retail lending officer (at the branch), who may only spend a small part of their day on mortgages, Firstline mortgage services (Firstline Mortgages) has embraced the mortgage broker distribution channel which offers mortgages through Canada’s leading independent mortgage specialists.
Wednesday, February 4, 2009
Tips for Paying Off Your Mortgage Faster
For most Canadian homeowners, paying off their mortgage as quickly as possible is a top priority. Paying down extra principal in the early years by whatever means possible can shorten the life of your mortgage – and dramatically lower the interest you'll pay over the long haul. Here are a few tips on how to make this happen:
1. Increase your payment annually to the most you can afford
The upside is that most lenders will allow you to reduce it again to the previous level if it turns out to be too great a burden or your circumstances change.
2. Prepayments give great return on investment
If, for example, you pay an average of 6.0% in mortgage interest, for each $1,000 by which you reduce your mortgage principal, you will save $60 in after tax cash every year.
3. Utilize your RRSP-driven tax rebate as a mortgage prepayment method
Even if you can only prepay annually, make sure tax refunds are set aside for paying down your mortgage. Many Canadians borrow (at prime) to buy an RRSP to ensure the maximum rebate. When applied to the mortgage principal, this refund is a "gift that keeps on giving". Combining the refund with the tax-free interest earned on the RRSP over the subsequent years will quickly outpace the short-term interest costs of the RRSP loan.
4. Increase the frequency of your payments
Make accelerated bi-weekly payments to get a "free" principal reduction equivalent to one full mortgage payment every year — painlessly.
5. Make use of double-up privileges wherever possible
Tell yourself that you will "skip-a-payment" whenever necessary... then skip only when you absolutely must.
6. Round your payments up
By adding even a nominal amount of say, $10 per payment, the amount of interest you are saving will be unbelievable, and the extra money is relatively painless to part with.
7. Pay a lump sum whenever possible
By decreasing the principal of the mortgage, your payments will not be allocated as much to interest, thereby accelerating the end of your mortgage.
8. Keep payments the same when mortgage rates have fallen
If the payment amount has not been a problem so far, then keep it the same, thereby paying down the principal faster.
9. Raise payments in line with increased income on an after-tax basis
If your income increases, don't keep your mortgage payments the same. Although the disposable income may be fun to spend on unnecessary luxuries in the short-term, the long-term benefits of being mortgage free faster a far outweighs the short-term sacrifice.
Tuesday, February 3, 2009
12 Commandments of Success
From Matt Oechsli, author of “The Art of Selling to the Affluent.”
Again, the goal of offering Ritz Carlton service with Fed Ex efficiency applies to all businesses.
His 12 Commandments of Business Success:
1. Be totally committed
2. Be as advertised
3. Be a problem solver
4. Be a servant
5. Be a trusted source of information
6. Provide value that exceeds price
7. Disclose all costs
8. Stand by everything
9. You are the firm
10. Be covetous of your reputation
11. Become internet savvy
12. No hassles
From Bill:
I know a woman, an older woman, who sold real estate on Cape Cod and followed these 12 rules. Her name was Vivian. When other brokers bragged about selling millions of dollars worth of real estate every year, Vivian earned a million dollars a year in commissions! One little old lady who was 100% service oriented 24/7, 365. My father once bought a house from Vivian and for the rest of her life, she send me a birthday card and she send my five brothers and sisters birthday cards. I never forgot Vivian.
Bill
Monday, February 2, 2009
Panic is never a good reason to sell
You’d think that if there were less people looking to make any kind of a move in Toronto real estate now versus a year ago, or two years ago, there would be significantly fewer listings on the market. Theoretically it makes sense but the truth is different.
In fact, there are many homes for sale now. Why? The good reason has to do with families recognizing the opportunity to move to a large home and taking advantage of it. The bad reason is panic. Many people have been driven by panic to list their home now, fearing that as the months go on the situation will only get worse.
For those people listing condos and houses, I will tell you that panic is rarely a good reason to do anything, and rarer still does panic ever breed logic. Many people believe that the window to sell at the least significant loss possible is quickly shrinking as 2009 marches on. But the real estate market may soon show signs towards stabilization rather than deterioration. The Toronto’s real estate market had scope to go even higher before these troubling times. That’s what separates our market from a lot of others. Having said all that, there remain many who are listing their homes, be it for good reasons or not so good ones. So if you’re one of them, hopefully the following will help shed some light on this difficult decision.
One of the most significant points of struggle is the initial list price. Weighing pricing too high and risking a property that never sells versus pricing too low and losing thousands of dollars. The price needs to be low enough that the property attracts interest and stands out in the minds of buyers, yet high enough that you’re not setting yourself up poorly for negotiation time. The 101 considerations may be beyond this scope but competing listings are crucial to understand. You need to know, and see, what buyers looking at your property are comparing it to. Competition, in a large way, will determine where your house or condo falls.
Moving fast or slow also has many considerations but, again, the competition factor plays an integral role. For instance, if you find your condo is worth $275,000 the last thing you want is the chump upstairs, with the identical unit, listing theirs for $260,000 while yours is still on the market! While the actions of others are, of course, out of your hands, there are certainly ways to mitigate the risks, control the competition to an extent, and give yourself the best possible selling scenario. For instance, if a competing listing just sold for a very attractive price, get yours up as quickly as possible, and with an attractive, yet fair, price.
Wednesday, January 28, 2009
Homeowners in line for 15% rebate on renos
For a certain sector of consumers, 2009 could become the year of the
"The HRTC will provide a temporary incentive for Canadians to undertake new renovation projects or accelerate planned future projects," the budget documents said, "thus providing timely stimulus to the Canadian economy while boosting energy efficiency and the value of
The government said the incentive is expected to provide about $3-billion in tax relief to some 4.6 million families.
The credit, which is available for homes and cottages effective immediately, is designed to boost construction, forestry and other industries.
Taxpayers can claim renovations on their 2009 tax returns on costs over $1,000, but not exceeding $10,000.
The home renovation program would appear to involve considerably less red tape than some existing initiatives that encourage investment in the home. Programs that involve rebates for investment in the energy efficiency of a house, for example, require a government auditor to approve the changes made to a home to ensure energy efficiencies have been realized.
The HRTC, however, simply requires homeowners to apply for the tax credit, directly on their income-tax returns. The only demand is that the taxpayer save the appropriate receipts in case of a future audit by Revenue
It also, though, means contractors will have to produce invoices for jobs such as backyard landscaping or basement refinishing -- work that Finance officials yesterday noted is often conducted on a cash basis, with no paperwork produced.
The list of eligible expenses includes renovating kitchens, bathrooms or basements; new carpeting or flooring; building additions, decks, or retaining walls; installing furnaces or water heaters; interior and exterior painting; or driveway resurfacing.
Routine maintenance does not qualify. Such things as new furniture, appliances, tools, carpet cleaning and snow removal are excluded.
Also on the home front, the government will put an extra $300-million over two years into energy retrofits, raise to $25,000 the amount first-time homebuyers can borrow from RRSPs, and provide up to $750 in tax relief to help with their purchases.
2009 Federal Budget
2009 Federal Budget Announced
Federal-Budget And what a budget it is for the real estate industry.
The Tory's reached into the goody bag and pulled out:
* A $5000 increase to the RRSP Home Buyers Plan, meaning first-time home buyers can now withdraw up to $25,000 from their RRSPs for a down payment--tax and interest-free.
* A $750 tax credit for first-time home buyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
* A 15% tax credit of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010.
* $300 million for ecoENERGY Retrofit grants.
* Up to $50 billion worth of additional mortgage buybacks. The government called this a "successful program" that "will reassure lenders that stable long-term financing will continue to be available..." (See sidebar below)
* More "disclosures" for mortgage insurance designed to "help consumers better understand the mortgage insurance transaction. The Government will also propose new measures to ensure that Canadian consumers are charged no more for mortgage insurance than the true cost of obtaining that insurance."
Liberal chief Michael Ignatieff is expected to announce whether the Liberals will support the budget today at 11am ET. Pundits expect him to back it, albeit hesitantly.
The New Democratic Party and Bloc Quebecois have already vowed to vote it down.
Federal-Budget And what a budget it is for the real estate industry.
The Tory's reached into the goody bag and pulled out:
* A $5000 increase to the RRSP Home Buyers Plan, meaning first-time home buyers can now withdraw up to $25,000 from their RRSPs for a down payment--tax and interest-free.
* A $750 tax credit for first-time home buyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
* A 15% tax credit of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010.
* $300 million for ecoENERGY Retrofit grants.
* Up to $50 billion worth of additional mortgage buybacks. The government called this a "successful program" that "will reassure lenders that stable long-term financing will continue to be available..." (See sidebar below)
* More "disclosures" for mortgage insurance designed to "help consumers better understand the mortgage insurance transaction. The Government will also propose new measures to ensure that Canadian consumers are charged no more for mortgage insurance than the true cost of obtaining that insurance."
Liberal chief Michael Ignatieff is expected to announce whether the Liberals will support the budget today at 11am ET. Pundits expect him to back it, albeit hesitantly.
The New Democratic Party and Bloc Quebecois have already vowed to vote it down.
Tuesday, January 27, 2009
The Budget: Shock Therapy
With today's budget, the Conservatives will try to resuscitate the economy with a wave of spending and tax cuts, joining other governments in turning on the taps in an effort to get ailing economies back on their feet
BRIAN MILNER From Tuesday's Globe and Mail January 27, 2009 at 3:26 AM EST
Diehard Keynesians say it should be well above 4 per cent. The IMF is calling for 2 per cent. U.S. President Barack Obama's proposal amounts to 5 per cent.
How much of a country's gross domestic product is enough, and how much is too much?
When Canada's fiscal stimulus spending is announced today in the federal budget, economists expect the package will represent about 1.25 per cent of GDP. That's in line with some big European countries, but falls short of what the Americans and Chinese are spending. It's also well below the level that some big-name interventionists such as Paul Krugman are urging.
The evidence that the world economy is grinding to a standstill - and that no nation has been able to immunize itself from the damage - is now incontrovertible, and still mounting. In a forecast to be released later this week, the International Monetary Fund has shredded its estimate for global expansion this year to 0.5 per cent, down sharply from its prediction in November of 2.2-per-cent growth, according to a person familiar with the report.
is joining the global public spending race. While Ottawa is likely to spend close to $20-billion this year on stimulus, what is not known, economists say, is whether the spending spree fuelled by fears of another Great Depression and egged on by Keynesian economists will rescue the global economy from the abyss. Or what long-term damage this will inflict on public balance sheets.
"We're in uncharted waters," said John Mauldin, a well-known investment adviser who heads money management firm Millennium Wave Investments in Arlington, Tex. "The captains of the ship are Keynesians. We know that. But they're not sure where they're going."
Few voices have risen in opposition to a strategy that seems fraught with risks. Critics of heavy government intervention typically argue that such spending is inefficient, may not cure what ails individual economies and could saddle governments with far more problems than it solves, such as massive long-term debt.
But right now, most economy watchers insist this is no time for governments to be reticent. While the IMF does see growth rebounding to 3 per cent next year, such key economies as the United States, the euro zone countries and Japan will grow only slightly - even once aggressive fiscal stimulus packages have been taken into account.
The unfolding credit and economic crisis suggests that if anything, governments have not been aggressive enough. Already, some economists are saying that governments failed to intervene fast enough to halt the spreading virus last fall and are paying the price now.
"Whenever there has been a financial crisis in the past, something like 5 to 10 per cent of GDP has been spent to turn things around," said Manmohan Agarwal, a senior visiting fellow at the Centre for International Governance Innovation in Waterloo, Ont., who is studying the various responses to the global crisis.
That's more than many countries are spending, apart from China. The country, which enjoys a huge budget surplus, is earmarking an estimated 16 per cent of GDP for job and infrastructure spending. The Obama administration, facing sky-high deficits, intends to spend an estimated 5 per cent of its 2009 GDP, excluding the bank and auto bailouts. No major European government is spending even 1.5 per cent of GDP.
The Harper government's plans line up with the European's. Based on what it has revealed of its intentions so far, the total will be closer to about 1.25 per cent of GDP. When likely provincial spending programs are included, the total will approach the 2-per-cent level recommended by the IMF.
But Canada's spending may still not meet the IMF recommendation that countries with strong balance sheets and budget surpluses, which Canada has enjoyed until now, should be doing even more. Canada should spend "something to the tune of a few percentage points" to spark demand, Mr. Agarwal said.
Like other countries, Canada is steering billions into infrastructure building, but is also cutting taxes. Ottawa watchers say the mix of tax cuts to spending could be even higher than the 40-60 ratio favoured by the White House.
But tax cuts, although politically appealing, do little to spur economic growth unless they are permanent. And even temporary cuts are tough to unwind later, economists say. Tax cuts might be necessary for political reasons, but the fact they are discussed as a stimulus is "a measure of economic ignorance, really," Mr. Agarwal said.
No matter how much Ottawa opts to spend, Canada's recovery depends largely on what happens beyond its borders.
"We have to hasten to remind ourselves that we're not the country that tanked the rest of the world," said Don Drummond, chief economist with Toronto-Dominion Bank. "The rest of the world tanked us. The domestic side of our economy held up a lot longer than it did in other places."
There is another inescapable truth about Canada's economic well-being that can't be addressed by a fiscal stimulus, no matter how large.
"Canadian economic performance isn't driven much by our own fiscal policy," Mr. Drummond said. "It's much more driven by the international climate."
With a file from reporter Kevin Carmichael in Ottawa
*****
Country Stimulus to date % of GDP
United States $825-billion 5*^
Canada $49-billion 1.25*
China $580-billion 16**
EU $264-billion 1.5
France $5.2-billion 1.3
Britain $28-billion 1^
Sweden $1-billion 3
*All figures U.S. *estimated
**estimated, 2007 GDP
^ excluding bank bailouts
BRIAN MILNER From Tuesday's Globe and Mail January 27, 2009 at 3:26 AM EST
Diehard Keynesians say it should be well above 4 per cent. The IMF is calling for 2 per cent. U.S. President Barack Obama's proposal amounts to 5 per cent.
How much of a country's gross domestic product is enough, and how much is too much?
When Canada's fiscal stimulus spending is announced today in the federal budget, economists expect the package will represent about 1.25 per cent of GDP. That's in line with some big European countries, but falls short of what the Americans and Chinese are spending. It's also well below the level that some big-name interventionists such as Paul Krugman are urging.
The evidence that the world economy is grinding to a standstill - and that no nation has been able to immunize itself from the damage - is now incontrovertible, and still mounting. In a forecast to be released later this week, the International Monetary Fund has shredded its estimate for global expansion this year to 0.5 per cent, down sharply from its prediction in November of 2.2-per-cent growth, according to a person familiar with the report.
is joining the global public spending race. While Ottawa is likely to spend close to $20-billion this year on stimulus, what is not known, economists say, is whether the spending spree fuelled by fears of another Great Depression and egged on by Keynesian economists will rescue the global economy from the abyss. Or what long-term damage this will inflict on public balance sheets.
"We're in uncharted waters," said John Mauldin, a well-known investment adviser who heads money management firm Millennium Wave Investments in Arlington, Tex. "The captains of the ship are Keynesians. We know that. But they're not sure where they're going."
Few voices have risen in opposition to a strategy that seems fraught with risks. Critics of heavy government intervention typically argue that such spending is inefficient, may not cure what ails individual economies and could saddle governments with far more problems than it solves, such as massive long-term debt.
But right now, most economy watchers insist this is no time for governments to be reticent. While the IMF does see growth rebounding to 3 per cent next year, such key economies as the United States, the euro zone countries and Japan will grow only slightly - even once aggressive fiscal stimulus packages have been taken into account.
The unfolding credit and economic crisis suggests that if anything, governments have not been aggressive enough. Already, some economists are saying that governments failed to intervene fast enough to halt the spreading virus last fall and are paying the price now.
"Whenever there has been a financial crisis in the past, something like 5 to 10 per cent of GDP has been spent to turn things around," said Manmohan Agarwal, a senior visiting fellow at the Centre for International Governance Innovation in Waterloo, Ont., who is studying the various responses to the global crisis.
That's more than many countries are spending, apart from China. The country, which enjoys a huge budget surplus, is earmarking an estimated 16 per cent of GDP for job and infrastructure spending. The Obama administration, facing sky-high deficits, intends to spend an estimated 5 per cent of its 2009 GDP, excluding the bank and auto bailouts. No major European government is spending even 1.5 per cent of GDP.
The Harper government's plans line up with the European's. Based on what it has revealed of its intentions so far, the total will be closer to about 1.25 per cent of GDP. When likely provincial spending programs are included, the total will approach the 2-per-cent level recommended by the IMF.
But Canada's spending may still not meet the IMF recommendation that countries with strong balance sheets and budget surpluses, which Canada has enjoyed until now, should be doing even more. Canada should spend "something to the tune of a few percentage points" to spark demand, Mr. Agarwal said.
Like other countries, Canada is steering billions into infrastructure building, but is also cutting taxes. Ottawa watchers say the mix of tax cuts to spending could be even higher than the 40-60 ratio favoured by the White House.
But tax cuts, although politically appealing, do little to spur economic growth unless they are permanent. And even temporary cuts are tough to unwind later, economists say. Tax cuts might be necessary for political reasons, but the fact they are discussed as a stimulus is "a measure of economic ignorance, really," Mr. Agarwal said.
No matter how much Ottawa opts to spend, Canada's recovery depends largely on what happens beyond its borders.
"We have to hasten to remind ourselves that we're not the country that tanked the rest of the world," said Don Drummond, chief economist with Toronto-Dominion Bank. "The rest of the world tanked us. The domestic side of our economy held up a lot longer than it did in other places."
There is another inescapable truth about Canada's economic well-being that can't be addressed by a fiscal stimulus, no matter how large.
"Canadian economic performance isn't driven much by our own fiscal policy," Mr. Drummond said. "It's much more driven by the international climate."
With a file from reporter Kevin Carmichael in Ottawa
*****
Country Stimulus to date % of GDP
United States $825-billion 5*^
Canada $49-billion 1.25*
China $580-billion 16**
EU $264-billion 1.5
France $5.2-billion 1.3
Britain $28-billion 1^
Sweden $1-billion 3
*All figures U.S. *estimated
**estimated, 2007 GDP
^ excluding bank bailouts
Monday, January 26, 2009
TD to charge customers who don't use their lines of credit
OTTAWA - Despite interest relief from the Bank of Canada, at least two of the country's big banks are increasing the borrowing cost for customers who tap into their lines of credit, and one is charging a new fee for those who don't use it.
TD Canada is introducing a new $ 35 " inactivity" fee in April for customers who don't use their unsecured line of credit over the course of a year.
For those who do, the interest rate is rising from 3.9 to 4.4 per cent above TD Prime, beginning March 1.
The Bank of Montreal is also raising the borrowing cost for its unsecured line of credit by one per cent, from two to three per cent above BMO Prime, beginning March 4. The bank is not introducing any penalty fee for customers who don't use their line of credit.
The changes were revealed in private correspondence to customers in recent days, just as the Bank of Canada on Tuesday chopped its key lending rate by 0.5, to 1 per cent.
The banks, along with the rest of Canada's big banks, immediately announced they were passing on the full measure of the latest interest-rate relief by cutting their prime lending rates by a half-point to a record low of three per cent.
The banks also announced reductions in some fixed and floating-rate mortgages.
In a statement, a TD spokeswoman defended the decision to raise the cost of borrowing on its unsecured line of credit, saying it reflects " the continued rise in the cost of lending."
Kelly Hechler added, " We are working to balance our customers' goals with prudent business practices, which is especially important during the current economic downturn."
She also said the new penalty for inactive files is fair because there is a cost associated with maintaining them.
BMO spokesman Paul Gammal said despite the increase, the bank's unsecured line of credit remains an attractive product for consumers.
" From our survey of the market, our personal-line-of-credit offering is competitive and, in fact, favourable, compared to some of our major competitors."
Glenn Thibeault, consumer affairs critic for the New Democrats, wasn't moved by that defence.
Thibeault singled out TD's new inactivity fee as egregious.
" That one to me is just mind-boggling. You finally pay off your debt, and you get penalized for it."
A spokesman for Scotiabank said the company does not currently charge nonactivity fees on its lines of credit. He also said he would not speculate on any possible future interest rate changes. RBC and CIBC could not be reached for comment about whether their borrowing costs on unsecured lines of credit will be rising alongside TD's and BMO's.
Vancouver Sun - Jan 26, 2009, by Sarah Schmidt
]
TD Canada is introducing a new $ 35 " inactivity" fee in April for customers who don't use their unsecured line of credit over the course of a year.
For those who do, the interest rate is rising from 3.9 to 4.4 per cent above TD Prime, beginning March 1.
The Bank of Montreal is also raising the borrowing cost for its unsecured line of credit by one per cent, from two to three per cent above BMO Prime, beginning March 4. The bank is not introducing any penalty fee for customers who don't use their line of credit.
The changes were revealed in private correspondence to customers in recent days, just as the Bank of Canada on Tuesday chopped its key lending rate by 0.5, to 1 per cent.
The banks, along with the rest of Canada's big banks, immediately announced they were passing on the full measure of the latest interest-rate relief by cutting their prime lending rates by a half-point to a record low of three per cent.
The banks also announced reductions in some fixed and floating-rate mortgages.
In a statement, a TD spokeswoman defended the decision to raise the cost of borrowing on its unsecured line of credit, saying it reflects " the continued rise in the cost of lending."
Kelly Hechler added, " We are working to balance our customers' goals with prudent business practices, which is especially important during the current economic downturn."
She also said the new penalty for inactive files is fair because there is a cost associated with maintaining them.
BMO spokesman Paul Gammal said despite the increase, the bank's unsecured line of credit remains an attractive product for consumers.
" From our survey of the market, our personal-line-of-credit offering is competitive and, in fact, favourable, compared to some of our major competitors."
Glenn Thibeault, consumer affairs critic for the New Democrats, wasn't moved by that defence.
Thibeault singled out TD's new inactivity fee as egregious.
" That one to me is just mind-boggling. You finally pay off your debt, and you get penalized for it."
A spokesman for Scotiabank said the company does not currently charge nonactivity fees on its lines of credit. He also said he would not speculate on any possible future interest rate changes. RBC and CIBC could not be reached for comment about whether their borrowing costs on unsecured lines of credit will be rising alongside TD's and BMO's.
Vancouver Sun - Jan 26, 2009, by Sarah Schmidt
]
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