FAQ – Real Estate Law
What are closing costs?
These are costs payable on top of the down payment, including but not limited to:
- Land Transfer Tax (click here to calculate your Land Transfer Tax)
- Registration Fees [$71.30 to Ministry of Finance for every document registered, commonly a Transfer (deed) and a Charge (mortgage)]
- Property Tax Adjustments between vendor and purchaser
- For builder home purchases (new homes), items such as Tarion Warranty enrollment fee, hydro/gas/water meter connection fees, security deposits, driveway paving, boulevard tree planting charges, levy increases, etc. (these vary from builder to builder)
- Bank charges such as PST payable on CMHC, appraisal fees, wiring fees, etc.
- Title Insurance
- Legal fees & disbursements
How do I calculate Land Transfer Tax?
Click here to calculate your Land Transfer Tax
What is the First-Time Homeowner Rebate on Land Transfer Tax?
- The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.
- The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
- If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.
- The purchaser cannot have previously received an Ontario Home Ownership Savings Plan (OHOSP)-based refund of land transfer tax.
- "purchaser" means an individual who is at least 18 years of age and who has never owned an eligible home anywhere in the world and whose spouse has not owned an eligible home anywhere in the world while he or she was a spouse of the individual.
- "spouse" means spouse as defined in section 29 of the Family Law Act. At present, "spouse" means either of two persons who are married to each other, or who are not married to each other and who have cohabited,
- continuously for a period of not less than three years, or
- in a relationship of some permanence, if they are the natural or adoptive parents of a child.
What is the RRSP Home Buyer’s Plan?
Do you qualify? See the link & take the test: http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html#P105_11069
What is an insurance binder letter?
When you purchase property, the bank loaning you mortgage funds needs to ensure that there is adequate property insurance on the subject property. The mortgage funds cannot be released without this document.
You will require home insurance each time you purchase a property, not only for the bank but also to protect your own financial investment.
Insurance may be obtained from any reputable insurance brokerage, and confirmation of the property insurance (often called a “binder letter”) must be provided to your lawyer prior to the purchase date
Here’s a list of contacts with respect to Milton real estate transactions:
- Milton Hydro: 905-876-4611
- Union Gas: 1-888-774-3111
- Bell Canada: 1-800-668-6878
- Cogeco Cable: 1-855-414-0005
- Canada Post: 1-800-267-1177
- Town of Milton: 905-878-7252
- HST Rebate (http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rbts/)
- HST Residential Rebate (http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rbts/nwhsng-eng.html)
- Town of Milton (http://www.milton.ca)
- Tax Department (Town of Milton) (http://www.milton.ca/en/live/payingyourtaxes.asp)