Good morning everyone;
First of all I would like to thank my colleagues for having looked after my clients while away.
David, Jorge, Sam and Steve are not only trusted colleagues but good friends. Thanks again!
In the GTA Real Estate – Market
Much of the same – The Toronto Market is still seeing significant amount of bidding wars. This week alone (despite a bad stomach flu) I took part in 2 more. Quality inventory is still quite low. Coupled with the slow start to spring, potential sellers have relaxed their time line to placing their home on the market. Within in the nest 2-3 weeks we should see significant amounts of new listings.
Personally I feel that this year will continue the trend that has sounded like a broken record for a while now. That is, fewer overall transactions, but with stable to small price increases.
There are still good properties and good deals to be had bud patience and persistence are definitely required.
Next week I will be able to provide you with the March numbers!
-Some major lenders have offered promo mortgage rates as low as 2.7% fixed for 5 years (closed). This is an extremely low rate and it sparked criticism from our financial minister, basically calling the mortgage rate irresponsible.
-I’m not sure that the criticism is warranted. My reasoning is as follows. The federal government has introduced many new mortgage rules to eliminate “fringe” borrowers and many (lower amortization rates, increase minimum down payment requirements, less refinancing options) people forget that buyers are qualified for mortgages at the non-discounted posted rates. The bank’s interest rate offering is dictated by market forces and the business endeavours of each particular lender. For example: A bank may be after market share so they offer a special rate for a short time. We see this in virtually every other industry (except: Automobile Fuel L )
-I’m in favour of a strong stable market and would be the first to oppose reckless, fraudulent lending. No one should be purchasing a home that they can’t afford. Qualify the buyers based on their: assets, debts and income. If they happen to benefit from a low interest rate, that’s great!
Some Potential Tax Credits
Provided by Ratehub.ca
Filing your taxes is about as much fun as getting a root canal; likewise, it’s also a necessary evil. And what you probably care most about is whether you’ll receive a big, fat juicy cheque or owe the taxman. If you’re a homeowner, the one thing you should stay on top of is whether or not there are any tax credits and/or rebates you can claim on your income tax. To help keep more of your hard-earned dollars in your pockets, we’ve compiled a list of some of the things you should know you can claim.
First-Time Home Buyers’ Tax Credit (HBTC)
Buying a home is expensive, especially for first-time homebuyers. If you did purchase a qualifying home this year, you can claim a tax credit of $5,000 which would result in a refund of up to $750. If you bought with a partner, and you both qualify, you can split the tax credit 50/50 at $2,500 each. Just make sure you fill in line 369 to take advantage of this credit.
GST/HST New Housing Rebate
HST is a pain the neck – it can also be quite costly, especially if you’re buying a new home in Ontario or B.C. If you bought a brand new home under $450,000, you can claim the GST/HST New Housing Rebate. If you’re in Ontario or B.C., you can also claim the PST portion of the HST, if you buy, build or do a major renovation – like adding a second story – on your house. Just make sure you find the right form for your situation (and contact the CRA if you need help).
Provincial Tax Credits
If you’re a homeowner in Ontario, don’t forget to claim the Ontario Property Tax Credit for taxes paid to your municipality. Seniors in Ontario are also entitled to the Senior Homeowner’s Property Tax Credit. To find out if there are any tax credits in your province, visit the CRA website.
Home Buyers’ Plan
If you used the Home Buyers’ Plan and withdrew money from your RRSP for your down payment, you must fill out and file a couple of forms with your tax return. If you don’t complete a T1036 form and claim your T4RSP statement on your tax return, you could end up having to pay tax income tax on the amount you withdrew. Nobody wants that piece of mail to come back from the CRA!
Living with tenants isn’t always the most ideal situation, but they do provide a nice tax break. Although you’ll pay income tax on your rental income, you can still claim expenses, such as maintenance, utilities, mortgage interest and advertising fees. Make sure you complete form T776 before you file, and see how much of a difference it makes.
Working from Home
If you have the luxury of working from the comfort of your own home, there are numerous expenses you can claim a portion of, including utilities, home insurance and mortgage interest.
Medical Expense Tax Credit
This tax credit isn’t just for prescription drugs. If you’re a person with mobility impairment, you can claim expenses to make your home more accessible. CRA can be sticklers, when it comes to medical expenses, so contact them and find out what qualifies before you file.
Have a great Easter weekend and an awesome week,