This Publication Provides Statistical Data From The Toronto Real Estate Board Broken Out By Districts And Property Types Such As Toronto Lofts, Condominiums, Houses, And Townhomes. Be As Informed As Most Agents Before Starting Your MLS Search!
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HOW MUCH WILL IT COST TO PURCHASE A RESALE PROPERTY IN TORONTO?
There is one thing I can promise you...this blog will be boring. There is nothing exciting about discussing closing costs when purchasing a piece of Real Estate in Toronto...but it is critical that Buyers do not get hit with surprises so here is a run down of the most significant costs:
LAND TRANSFER TAX (There are two of them!):
Thanks to the City of Toronto we currently have two Land Transfer taxes in place. A Provincial Tax and a City Tax. They are not insignificant so it is really important that you factor these costs in:
For example, the Land Transfer Tax on a $500,000 property in Toronto would be as follows:
Provincial Land Transfer Tax: $6475
Toronto Land Transfer Tax: $5,725
Total Land Transfer Tax: $12,200
Our Mayor...Mr. Rob Ford, said he would eliminate the Toronto Land Transfer tax as part of his election platform...we are still waiting Mr. Ford.
LAND TRANSFER TAX REBATE:
If you are a first time home Buyer (meaning this is the first time you are buying a property anywhere in the world), you likely qualify for a $2000 Provincial Land Transfer Tax rebate and a $3,725 Toronto Land Transfer Tax rebate (equivalent to the land transfer tax payable on a $400,000 property).
You can find a great Land Transfer Tax calculator, as well as additional information, on my website by going to: GOVERNMENT PROGRAMS.
I would budget about $1800 for Lawyer costs on a Purchase but costs can vary so it is always best to check with you Lawyer. One of my favourite Lawyers is Richard Boccia located and Yonge and Bloor downtown.
Closing Adjustments are sometimes difficult to understand as they are not really "costs" of the transaction and shouldn't be factored into any investment analysis scenarios you may be doing. Nonetheless you need to have cash available for them.
These adjustments are primarily reimbursements to the Sellers for things they have may have prepaid for you.
If, for example, you buy a condo with Monthly Maintenance Fees of $400 and you close the deal at the middle of the month, you will have to reimburse the seller for about $200 of the maintenance fees he/she already paid for the month in question as that second half of the month iss really your responsibility.
If the Seller has already paid the property taxes to the city for the next few months, you will have to reimburse him for any portion that is now actually your responsibiliyy.
So these type of costs are reimbursements for things the seller has prepaid. Clear as mud? If not...just ask me and I will explain further.
I would budget about $2,000 for this a general guideline but it can vary based on things such as the value of the property.
The Seller is going to want to see a deposit of about 5% of the Purchase Price by bank draft or certified cheque no later than the first day after acceptance of the offer so you need to have this amount immediately available. If you intend to put more money down on the property, the balance of funds would be due just before the deal actually closes.
Note: If you are not a resident of Canada you will likely require a 35% down payment at closing. To discuss your specific financing scenario I would suggest contacting Steve Bourne.
Other things to consider include getting insurance on the property (which is required), Moving Expenses, and Mortgage Insurance Costs. These can vary greatly by individual and must be reviewed on a case-by-case basis.
THE COST OF WORKING WITH ME TO BUY A PROPERTY IN TORONTO:
There are rare exceptions where the Purchaser may be liable for paying a Buyer Agent commission but they are rare, and you will always know if this situation exists BEFORE placing an offer on a property. Although these scenarios do exist, in my ten year in the business I have yet to actually encounter one.
Ok...I warned you...this was a boring blog...but sometime the boring ones are the most important ones.
Since working with me is free...why not give me a call?