First-Time Home Buyers Tax Credit
CMHC Purchase Plus
CMHC Purchase Plus Improvements Program
Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property.
This option eliminates the need to obtain secondary financing after the purchase to
pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.
Details
The insured loan will be based on the lower of:
- The purchase price plus the actual cost of improvements, or,
- The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations/ improvements. The lending value will not exceed the market value of the property after renovations/ improvements.
- Applicants must have the following:
- A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
- Cost estimates for renovations/improvements.
- Qualifications to obtain a CMHCinsured loan through an approved lender.
- For more information call CMHC at (416) 221-2642 or go to the website CMHC.
| EXAMPLE: |
| Purchase Price |
$100,000 |
| Renovations/Improvements costs |
$25,000 |
| Total Cost |
$125,000 |
| |
| Lending Value |
$125,000 |
| Maximum Mortgage (95%) |
$118,750 |
| Mimimum 5% down payment |
$6,250 |
RRSP Home Buyers Plan
 Five Per Cent Down Payment Program
With as little as five per cent down payment, from personal or other sources (see below for eligible other sources), all home buyers have access to mortgage insurance enabling then to enter the housing market, as long as they can manage the costs of home ownership.
Details
- Mortgage insurance for 95 per cent mortgages is available to both first time and repeat home buyers. Homebuyers have the option of using personal sources, such as savings or gifts, or other sources, such as lender incentives, borrowed funds/credit, or sweat equity (the amount of money spent to help construct the home) for the required five per cent down payment.
- Buyers using the Program may consume up to 32 per cent of their gross monthly household income for payments on loans for 95 per cent of the lending value of the house where the five percent down payment comes from other sources will be 2.9 per cent of the mortgage loan. This premium can be added to the mortgage.
- The maximum amortization period is 25 years.
- Insurance premiums on loans for 95 per cent of the lending value of the house where the five percent down payment comes from personal sources will be 2.75 per cent of the mortgage loan. Insurance premiums on loans for 95 per cent of the lending value of the house where the five percent down payment comes from other sources will be 2.9 per cent of the mortgage loan. This premium can be added to the mortgage.
- Borrowers are required to demonstrate, at the time of application, their ability to cover closing costs equal to at least 1.5% of the purchase price.
- Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.
For more information call CMHC at 1-800-668-2642 Government Programs for Property Owners
Home Renovations Tax Credit
Second Suites in Toronto
In an effort to increase the supply of affordable housing, Toronto City Council passed a by-law last year that legalized second suites, also known as accessory apartments. As a result, second suites are now legal in the City of Toronto in all single family and semi-detached homes, providing they meet certain criteria, including fire and building codes (see below for details). Following is a list of frequently asked questions regarding the legalization of existing second suites and the creation of new second suites in the City of Toronto. This background information was adapted from information provided by City of Toronto planning staff. For legal and zoning information on second suites in other Greater Toronto Area municipalities, please contact your local planning department.
FREQUENTLY ASKED QUESTIONS:
What is a second suite?
A second suite is a self-contained unit (rental or rent-free) in a single-detached or semi-detached house. Most second suites are basement apartments. They have also been called granny flats, in-law suites and accessory apartments.
Are second suites new?
No! In the past, second suites were permitted in some areas of the City (York, East York, and parts of former Etobicoke, North York and Toronto). Some parts of the City have had a long experience with this form of housing. As well, provincial legislation, in force between July 1994 and November 1995, allowed for the creation of second suites in all areas of the province.
Why has it taken a year for the City's second suites by-law to come into effect?
In July 1999, City Council adopted the second suites by-law. This by-law was appealed to the Ontario Municipal Board (OMB) by a number of residents' groups and individuals. The OMB held a hearing on the appeals in February 2000. The OMB issued a decision in April approving the City's by-law but directed that two amendments be made. The amendments dealt with: (1) parking provisions in some neighbourhoods in the former Toronto, and (2) building alterations.
The final by-law was approved by Order of the OMB on July 6, 2000. As a result of the Order, the second suites by-law (including the amendments) is now in effect.
Where are second suites permitted in the City?
The new by-law permits second suites in all single-detached and semi-detached homes throughout the new City of Toronto -- with certain conditions.
What are some of the conditions that apply to second suites?
Some of the conditions include:
- the second suite must be self-contained with its own kitchen and bathroom.
- the house, including any additions, must be at least 5 years old;
- the floor area of the second suite must be smaller than the remaining unit;
- in most cases, homes with a second suite must have at least 2 parking spaces and parking can be in tandem (one behind the other). There is an exception for parts of the former City of Toronto (R2, R3 and R4 districts) where only 1 parking space is required for a house with a second suite. Please contact the City of Toronto's Urban Planning and Development Services Department to determine if a property is located in a R2, R3, or R4 district.
- Before planning any changes to the outside appearance of a dwelling the homeowner should contact the City of Toronto's Urban Planning and Development Services Department; and
- all new second suites must comply with the Ontario Building Code and require a building permit. Existing second suites must comply with the Fire Code as well as zoning and property standards.
How can I find out if an existing second suite complies with the regulations?
The unit will have to be inspected by Fire Department staff. There is a fee for the inspection and you may be required to upgrade the suite to meet the code requirements and other standards. Contact the City's Urban Planning and Development Services Department for more information (see phone numbers below).
Does the City provide grants or loans to encourage the creation of second suites?
There is currently no grant or loan program for second suites. The City is discussing the potential for a program with senior levels of government. TREB's Government Relations staff is monitoring this initiative and will inform members if the City implements a program.
Will a second suite impact property taxes?
In most cases, there will be little impact on property taxes. A major exception would be where the second suite is created by constructing an addition, thereby significantly adding to the value of a house.
For specific zoning, property standards, or fire and building code questions please contact the City of Toronto's Urban Planning and Development Services Department:
| East York |
(416) 397-4591 |
| Etobicoke |
(416) 394-8055 |
| North York |
(416) 395-7000 |
| Scarborough |
(416) 396-7071 |
| Toronto |
(416) 392-7522 |
| York |
(416) 394-2535 |
Air Conditioner Rebate Program
Residential Washer Program
Residential Toilet Replacement Program
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About Appraisals >Working With A Real Estate Agent
It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough--just place an ad in the weekend paper and wait for buyers to show up. Although it may seem simple, real estate sales transactions are extremely complex proceedings.
The first pitfall can come with pricing your property realistically. Homeowners often price their property too high initially, then drastically slash the price when weeks go buy without an offer. Even if a prospective buyer agrees to the initial asking price, there could be complications if the buyers begin to feel that they have agreed to pay too much, or if the lender's appraisal values the property at far less than the agreed-upon price. Some clients hire agents to market their home professionally after weeks or months of trying to sell their own home without success, or after their FSBO transaction fell through.
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 |
| Q |
According to Feng Shui, the art of home placement, what five elements are needed in a harmonious environment?
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| A |
Wood, fire, earth, metal and water must be balanced to create a happy, prosperous home. |
 See More Real Estate Trivia > |
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