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Financing, Mortgages and Insurance What options are best for you and your situation?


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  #101  
Old 2013-02-11, 09:54 PM
NewPurchaser NewPurchaser is offline
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Default Adding upgrade costs to closing documents

We realize there is a lot of discussion in this area, however we wanted to raise the question/ask it in a different way:

Is it true that you can pay for upgrades "separately", and not have the purchase price increased/amended for purposes of Ontario Land Transfer Tax, Municipal Property Taxes (and perhaps Mortgage)?

So basically you tell your builder please do not show in the paperwork that we put $X of upgrades so that Land Transfer and Property Taxes are not increased?
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  #102  
Old 2013-02-12, 06:28 AM
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gerapau gerapau is offline
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Originally Posted by NewPurchaser View Post
We realize there is a lot of discussion in this area, however we wanted to raise the question/ask it in a different way:

Is it true that you can pay for upgrades "separately", and not have the purchase price increased/amended for purposes of Ontario Land Transfer Tax, Municipal Property Taxes (and perhaps Mortgage)?

So basically you tell your builder please do not show in the paperwork that we put $X of upgrades so that Land Transfer and Property Taxes are not increased?
Land transfer tax is based on the full amount including upgrades. Hiding the upgrades in order to reduce the land transfer tax would be illegal and both you and your builder could get in trouble if caught.

Unless you are buying ALOT of upgrades your property taxes are not directly based on your sales price so it would probably not matter.
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  #103  
Old 2013-02-12, 01:35 PM
elo elo is offline
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For property tax, every $10K (upgrade), it costs you $10.00 per month (Estimate only).

http://app06.ottawa.ca/cgi-bin/tax/t...lang=en#info_4
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  #104  
Old 2013-02-12, 04:59 PM
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gerapau gerapau is offline
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For property tax, every $10K (upgrade), it costs you $10.00 per month (Estimate only).

http://app06.ottawa.ca/cgi-bin/tax/t...lang=en#info_4
No it doesn't. That tool is meant to give you a rough estimate of your taxes. Your actual taxes, in Ontario, will be based on your MPAC assessment. Your MPAC assessment will not be based on the sale price of your home but rather on what they estimate your home is worth. For the most part most options will not impact your MPAC assessment.

Rather, things like your home's square footage (with first floor square footage worth more than second floor square footage worth more than basement square footage), the number of bathrooms, your lot size, etc... Are used to determine your assessment. It is not uncommon to find two similar homes in the same neighborhood that have the same assessment even though one was sold with $75,000 in options while the other had no options.

That said, when MPAC is doing their assessment they will ask you for your sale price and if it is ALOT more than other similar homes then they may assess your home a bit higher.

For more info on MPAC go to their website at www.MPAC.ca.
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  #105  
Old 2013-02-12, 05:15 PM
NewPurchaser NewPurchaser is offline
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No it doesn't. That tool is meant to give you a rough estimate of your taxes. Your actual taxes, in Ontario, will be based on your MPAC assessment. Your MPAC assessment will not be based on the sale price of your home but rather on what they estimate your home is worth. For the most part most options will not impact your MPAC assessment.

Rather, things like your home's square footage (with first floor square footage worth more than second floor square footage worth more than basement square footage), the number of bathrooms, your lot size, etc... Are used to determine your assessment. It is not uncommon to find two similar homes in the same neighborhood that have the same assessment even though one was sold with $75,000 in options while the other had no options.

That said, when MPAC is doing their assessment they will ask you for your sale price and if it is ALOT more than other similar homes then they may assess your home a bit higher.

For more info on MPAC go to their website at www.MPAC.ca.

Gerapau,

Conversely, if they assess higher property taxes for your new home, when other similar homes in the area have comparable current market value (even though their purchase price say 7 years ago was $250K less), can you appeal to MPAC?

Say newly built home with builder is $750,000. Similar home (lot size, square feet and features) across the street for which sale transaction took place 7 years ago was $500,000 at the time, however it's market value is $700,000 now ($50,000 lower value is entirely due to age of homes) (but no transaction has taken place on paper for the older house in the past 7 years). Do you believe these 2 homes would have similar property taxes?
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  #106  
Old 2013-02-12, 07:47 PM
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Originally Posted by NewPurchaser View Post
Gerapau,

Conversely, if they assess higher property taxes for your new home, when other similar homes in the area have comparable current market value (even though their purchase price say 7 years ago was $250K less), can you appeal to MPAC?

Say newly built home with builder is $750,000. Similar home (lot size, square feet and features) across the street for which sale transaction took place 7 years ago was $500,000 at the time, however it's market value is $700,000 now ($50,000 lower value is entirely due to age of homes) (but no transaction has taken place on paper for the older house in the past 7 years). Do you believe these 2 homes would have similar property taxes?
You can always appeal to MPAC if you don't feel their evaluation is correct. I have no idea if you would be successful.

A 7 year old home with similar features will be evaluated lower because of depreciation but the difference shouldn't be that great. Also keep in mind that the $750,000 new home probably has a sales price around $700,000 with the extra $50,000 being HST which is not included in assessments.
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  #107  
Old 2016-02-16, 07:55 PM
ripcurl ripcurl is offline
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What kind of rates are people seeing these days? With minimal shopping around at the big banks best I have seen is 2.5% 5 yr variable closed. There was a 2 year fixed that was a little lower.
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  #108  
Old 2016-03-01, 12:17 PM
MortgageMan MortgageMan is offline
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What kind of rates are people seeing these days? With minimal shopping around at the big banks best I have seen is 2.5% 5 yr variable closed. There was a 2 year fixed that was a little lower.
Why are you only shopping around at the big banks? depending where you are, there could be Prime -0.35 to -0.45 available on a 5 year. You should be checking with a mortgage broker/agent.
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  #109  
Old 2016-04-09, 03:11 PM
Tara Wilkins Tara Wilkins is offline
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Rates are very low, contact your broker or bank for more information!

Tara Wilkins
Mortgage Specialist
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  #110  
Old 2017-08-22, 03:11 PM
MortgageChase MortgageChase is offline
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Default Mortgage Rate - Update

Update on Mortgage Rates as of TODAY 22/8/17:

Lowest 5 year Fixed: 2.79%
*For this offer, the transaction must close within 60days from application date

5 Year Fixed: 2.84%
5 Year Variable: 2.20% | Prime - 0.75%

2 Year Fixed: 2.54%
3 Year Fixed: 2.59%
4 Year Fixed: 2.79%

Disclaimer:
The above mortgage rates are the best available and are subject to approved credit and may change at anytime without notice. The above is accurate as of 3:12pm on August 22nd, 2017

If you have mortgage questions or looking for advice with regards to anything mortgage related, I would be more than happy to assist. My services are free and I will entertain all inquireys as my time permits. I return all calls within 1 hour if you do not catch me live, and all written inquireys within 3 hours(if recieved between 8am-5pm).

Kindest regards,
__________________
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chase@chasebelair.com
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