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Whitby, ON

Buying a Home

Buying a home is a big undertaking, and all aspects should be carefully considered before any decisions are made. Not only do you want to find your dream home, but you want to do it within a reasonable budget. In hopes of staying within that budget, you may decide to cut some corners by carefully analyzing the things you want over the things you need.

  1. In making these decisions, you may decide to skip using a Buyer’s Agent. Is this a good decision? Here’s why:
 It’s free! The cost of using a Buyer’s Agent is covered by the seller out of the sale of their home. This means that choosing to use an agent will not only make your home buying journey much easier, but it won’t add a single penny to your budget.
  2. A Buyer’s Representation Agreement is what an agent will use to define the nature of your relationship and ensure they represent your best interests.
  3. If you are buying during a high volume period like the spring or fall, there will likely be a high level of inventory for you to choose from. Your agent will help you create a wish list and filter through all of the current listings to help you find your dream home.
  4. Your agent is an expert in their area. They will help you navigate through comparable properties, location advantages/disadvantages, and pros & cons of transportation options in the area.
  5. When it comes time to put in an offer, your agent will help you come up with a strategy and implement that strategy to ensure your success.
  6. Negotiation is a skill your agent will have perfected and is one that will help you get the best deal, and possibly beat out other potential buyers in a multiple offer situation.
Hopefully we’ve convinced you of the benefits of a hiring a Buyer’s Agent. So, why should you choose a RE/MAX Agent?

The answer to this question is simple. RE/MAX Agents have a reputation of being the most trusted, high producing agents in the industry. We are the best in the business selling 1 in every 3 homes in Canada and will ensure you are taken care of throughout the home buying journey.

It’s the reason you clip coupons and choose the office coffee rather than hitting the local coffee shop on your way to the office. It’s the reason you’ve become more familiar with the creatively cost-efficient “staycation” rather than a lavish vacation, and the reason you carefully consider each purchase before swiping your card. That’s right, it’s time to discuss the down payment, and more importantly, discuss exactly what is a down payment?

For those of you who have done your research, you know that when it comes to your down payment, you have a few options to consider. The down payment is the part of the purchase price that you come up with in advance of getting your mortgage, and the amount of your down payment is something you should have set before beginning the search for your dream home.


What is a Conventional Down Payment?

If you have a conventional down payment, this means that you have saved enough to put at least 20% of the purchase price down for your down payment. The benefit of this option is you do not need to be insured.

What is a Low Down Payment Insured Mortgage?

You are able to put as little as 5% down on your new home, but this option requires you to obtain Mortgage Default Insurance. This is a one­time premium that you pay as part of your closing costs.

Using Your RRSP for Your Down Payment

Did you know that under the Federal Governments Home Buyer’s Plan, first time home buyers are able to use up to $25,000 per person is Registered Retirement Savings Plan (RRSP) for their down payment? As long you repay within 15 years, the withdrawal is not taxable.

Read more about it on CRA’s website.

If you purchase land or an interest in land in Ontario, you are required to pay the Provincial Land Transfer Tax (PLTT).

Provincial Land Transfer Tax Formula (for everywhere but Toronto):

Price of Home Calculation of Land Transfer Tax
$0 – $55,000 0.005 x Home Price
$55,001 – $250,000 0.010 x Home Price
$250,001 – $400,000 0.015 x Home Price
$400,000 and up 0.020 x Home Price

This formula can be complex when you just need a quick calculation. You can use the Toronto Real Estate Board calculator:

Land Transfer Tax Rebate for First Time Home Buyers

If you’re a first time buyer in Ontario, you may be eligible for rebates for Provincial Land Transfer Tax. If two people are going on title together, both parties must be buying for their first time. Provincial Land Transfer Tax First Time Buyer rebate maximum $4,000. For more information about this program, visit the Ministry of Finance’s website.