Land Transfer Tax is a necessary evil for most home buyers. It is the tax paid to the province on the purchase price of the property. The amount of land transfer tax you pay depends on the purchase price of your home. For a quick calculation of the land transfer tax, refer to the following:
►Purchase price up to and including $55,000 = Purchase price x 0.005
►Exceeding $55,000 and up to $250,000 = (Purchase price x 0.01) - $275
►Exceeding $250,000, for property other than residential = (Purchase price x 0.015) - $1525
►Exceeding $250,000 up to $400,000, for residential property = (Purchase price x 0.015) - $1525
Robert's Top Ten Tips for a Successful Real Estate Purchase
Here are my top ten tips to avoid undesirable surprises on the purchase of your new home.
1. Choose your professional advisors with care.
(I.e. realtor, lawyer, home inspector, etc.) Ask family, friends, or your banker who they recommend. Your professional advisors are there to guide you through decisions where experience and expertise are important. Hire advisors who have proven their ability to people you trust.
2. Require a professional home inspection.
For the money, this is your best protection against hidden surprises and hidden expenses.
3. Get it in writing.
If you asked about it and you are relying on that information, it should be written in the agreement. Verbal promises are almost impossible to enforce.
4. Require a Vendor Property Information Statement.
5. Determine your financial needs early on.
Ask your lawyer for a detailed estimate of your closing costs. Ask your banker for an estimate of your net mortgage proceeds.
6. Reserve a pre-closing inspection and do it.
This enables you to make sure that nothing has been damaged or removed since you viewed the property.
7. Take your own water sample (or make sure your realtor takes it.)
8. Avoid closing on the "last Friday of the month".
The last Friday of every month is the most popular closing day, meaning: movers are booked up, lineups at the bank, backlogs at the land registry office, etc. = late closings.
9. Talk to your lawyer before scheduling movers.
Keys generally can't be released until 2pm or later. Your lawyer can give you a better idea of when you should be ready to move to avoid having movers sitting idle.
10. Consider bridge financing.
If you are selling and buying, doing both on the same day can be very hectic. Arranging bridge financing so you can buy first, move in and sell a few days later can save you a lot of stress.