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-   -   Property Taxes & Banks (http://www.buildinghomes.ca/community/forums/showthread.php?t=19619)

Zorro 2012-05-24 08:29 AM

Property Taxes & Banks
 
Hi,

I was wondering how this all works since; technically the city doesn’t assess the property for close to a year (from what other people have said).

Now at closing I know that I’ll be paying the ‘Land portion’ of the property taxes back to the builder (if they have prepaid for the whole year) for when I move in (June 26 in my case).

If I combine mortgage & property taxes…will the bank only charge me a portion of the taxes?

Also I’ve heard that 80% of purchase price is a good estimator for property taxes…can anyone confirm this?


Thanks!

Zorro

Stitts 2012-05-24 09:07 AM

I suggest you tell the bank how much you would like to pay for your property taxes. Most likely they will not calculate the correct amount which will result in a large deficit come tax time (meaning afterwards your property tax payments will significantly increase in order for you to catch up).
Once you figure out roughly how much they will be, you can do the calculations from there.

good2know 2012-05-24 09:15 AM

short storey is mpac advised by city of completion

they do the assessment and provide that to city a couple times per year

city will issue a supplementary tax bill to catch up

go to city websie for calculaor 80% of purchse is good ballpark

nasdaqbull 2012-05-24 10:13 AM

I'm sorry I'm not following! How is 80% of the purchase price a good estimate? If I bought for $100k my taxes would be $80k!!! Sounds a little off!

homeshoppin 2012-05-24 10:18 AM

Quote:

Originally Posted by nasdaqbull (Post 228399)
I'm sorry I'm not following! How is 80% of the purchase price a good estimate? If I bought for $100k my taxes would be $80k!!! Sounds a little off!

They mean with the calculator on the website, you need to input your purchase price first. So enter in only 80% of that and the calculator will base its calculations from that.

Once you see it you will get it. I was wondering wtf first too and then I remembered. LOL.

Zorro 2012-05-24 10:33 AM

Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!

Almost_Home 2012-05-24 10:41 AM

Quote:

Originally Posted by Zorro (Post 228401)
Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!

Yes, I remember getting two full years at once at our last home and expect the same again.
So start saving so it doesn't come as a complete shock....lol

homeshoppin 2012-05-24 10:43 AM

Quote:

Originally Posted by Zorro (Post 228401)
Thanks…yes I meant using 80% of purchase price when using the city estimator/calculator.

Now what I’m finding confusing is the timing of the taxes. As far as I see, taxes are due in March & June for the particular year.

So if I move in June 26/’12, does that mean that once March of next year comes around will I have to pay for (June 26 to Dec.31/’12) & for half 2013?

thanks!

It depends on how quickly the city assesses your property.

For us, we moved in Sept 30/09 and paid taxes on land only. In January we received a supplementary bill for the last 3 months of 2009 ($600). February of 2010 we received a bill for the first half of 2010.

The best idea is to call the City and sign up for their direct payment plan for 10 months (Jan-Oct) so you pay every month on the 15th and don't have to worry about a big bill twice a year. You must sign up by Jan 15 of something like that though.

If the City assesses your property soon enough then yes, you will owe two bills at the same time. Sucks eh?

Zorro 2012-05-24 10:49 AM

Oh man that's crazy!! :S

Oakview102 2012-05-24 10:52 AM

Sorry. I'm not sure I understand. We only will owe taxes for the part of the year we own the house right?

But they may not bill us until next year for this year because they don't assess it right away?


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