First Time Homebuyer
Happy New Year! And congratulations to those of you who have decided to make homeownership a part of your New Year’s resolution. Becoming a homeowner is an exciting, albeit nerve-wracking, experience–but I have some great tips that can help you get prepared.
First things first: head over to my Buyers Guide to get the rundown on important steps like financing and making an offer. Take your time, I’ll be right here when you get back.
All caught up? Perfect! Now, let’s go over some recent changes that will affect your home buying experience, and how you can come out on top.
Prepare for a Higher Purchase Price
Let’s just say, I hope you have been saving for this big investment. According to the Toronto Real Estate Board, the average selling price for residential properties was $729,922, which is a 17.3% increase from 2015. The prices aren’t expected to drop in 2017, but luckily, there are some great relief options via refunds and credits for first-time buyers.
Relief for First-Time Buyers
See, I told you! Last year, the federal government doubled the First-time Home Buyer’s Tax Credit from $2,000 to up to $4,000. While this doesn’t provide much of a discount on the purchase price of the home, the credit will allow you to put the savings towards other homeownership costs. Additional opportunities include a refund up to $2,000 through the Ontario Land Transfer Tax Rebate, and the Federal Home Buyer Plan, which provides strategies to first-time homebuyers.
The Latest Mortgage Rules
In a previous post, I talked about the new mortgage rules in great detail. Basically, these new rules were put in place to prevent the possibility of a housing crisis, similar to that in the United States in 2007. What that also means is that, as a first-time home buyer, you can feel more secure knowing the government has introduced regulations to prevent you from getting in over your head. For markets like Toronto, there’s hope that the new rules will lessen buyer competition and hopefully bring down rising housing prices.
While Toronto remains Canada’s hottest real estate market, it’s also the best place to live! If homeownership is part of your plans in 2017, I’d love to help. Let’s talk today!