You have enough put aside for a sizable downpayment for a condo your Realtor just found for you. The location, the amenities, the set up - everything about the condo is perfect. You can’t let this one go. But can you really afford to buy it considering all of the new expenses you’ll have?

Well, for the novice homebuyer, costs related to homeownership, such as taxes, maintenance fees, mortgage payments, and if applicable, utilities, can all seem a little daunting at first. You may think that you won’t be able to afford everything. But generally, if you add up all of these costs and they don’t go over 40% of your total household income (before taxes, of course), then you’ll be alright. Enough will be left over for daily expenses and savings.

The Toronto Real Estate Board (TREB) is asking city councillors to walk their talk by rolling back the Toronto land transfer tax while keeping property tax increases in check.

Last fall, city council approved the implementation of the Toronto land transfer tax, as well as a motion committing to reduce it by $50 million once the province uploaded 50 per cent of the city’s estimated downloaded costs of $729 million. TREB sees recent progress and believes that the city should begin the process of rolling back the tax immediately.

In a written submission to the executive committee, TREB posited that city council is in a position to implement the intent of this motion due to a number of factors, including the following:

TREB believes that recent progress and a modest implementation of the mayor’s fiscal review panel recommendations will reduce pressure on this year’s budget by hundreds of millions of dollars. The organization also believes that city council can begin rolling back the Toronto Land Transfer Tax, while keeping property tax increases to the rate of inflation as promised by Mayor Miller.

I want to buy a house, but I don’t know if I’ve got enough money. How much do you need for a down payment?

Not to fret. These days, a down payment isn’t even required when you buy a house. If you meet approval requirements, all you really need is to cover the closing costs. This is as low as 1.5% of the purchase price.

You’ve probably heard that you can boost the value of your home by renovating or updating around the house. But which do-it-yourself projects will give you the most bang for your buck this spring? According to experts, some of the best fixes are the simplest ones:

With spring on our doorstep, it’s a great time to get out your paintbrushes and toolboxes to not only renew the look of your home, but increase its value too.

According to the statistics for the GTA, 3,955 resale homes were sold in the first two weeks of April. This is a 5% drop when compared to the figures last year at the same time. Though the average price has risen to
$399,117 and the number of homes on the market is 1% greater, properties are sold faster - at an average rate of 28 days on the market.

But it’s not all bad for the entire city. Some areas of Toronto did better than last year. Willowdale, which includes the Yonge and Sheppard area, experienced a staggering 75% increase. The jump has been attributed to, not surprisingly, strong sales in condominiums and townhomes. Riverdale is another area that experienced a 10% increase, with detached home sales leading the way.

Want to buy a place but think you won’t get approved for a mortgage? Here’s a common question from one of our readers.

For someone that does not have great credit are there options for getting a mortgage?

Bruna, our Financial Representative, says:

I genuinely appreciate the question as most people want to ask but don’t.

9 out of 10 times the answer is yes, although it does depend greatly on the specifics of the situation that lead to the low beacon score. As a worse case scenario, we can take a look at doing a deal through our in house broker. They are there to ensure that no one is declined. However, the rates are usually a little higher.

I would only be able to provide you with a definite answer once we spoke, as there are different variables that we consider.

In order to determine the status of your credit check, an application must be completed. This application form is emailed to you and can be filled out when you have the time. This would be the best place to start as many people think they have poor credit but it generally is not the case. If it turns out that you do in fact have poor credit, we can work something out for you!

Hope this helps and please do not hesitate to contact me at all with any questions whatsoever. We are here to help ensure that this process is as seamless and stress free as possible for you.

For more Financial Advice, please contact Free Condo Guide’s Mortgage Specialist, Bruna Anacleto at 416.508.6324

How do you recommend finding out if the condo we want to purchase is affordable? How do we find out the different fees/bills that we’d be incurring, in addition to new ones? Also, can you recommend any seminars that offer tips on purchasing a condo, especially a resale one? Good tip about reading the condo association minutes. How would we gain access to that?

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