How much down payment you need for land in Ontario, Canada?
Property prices in Canada are soaring, especially in provinces like Ontario. As real estate markets break records for the rate at which homes sell, many buyers are forgoing the search for a home altogether and purchasing land for new construction.
So, if you're considering buying land in Ontario, Canada but lack the funds, you can get a land loan from a bank or other financial institution.
Firstly, you should be aware that in order to obtain a land loan, you must pay a certain percentage of the total sale price, known as a down payment. The percentage varies depending on the lender and type of land you're purchasing.
So, today we will look at the down payment needed for land in Ontario, Canada
How much down payment you need for land in Ontario, Canada?
Purchasing land in Ontario may be done for a variety of reasons, including the construction of your ideal home, the construction of apartment buildings, or even for business or agricultural use.
So, depending on your requirements, you can buy one of three types of land in Ontario: raw land, vacant land (zoned land), or Crown land.
As a result, the type of land will greatly influence how much of a down payment you will need to make. In order to purchase land in Ontario, Canada, you must make the following down payment:
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For Raw Land, (land that has never been developed before) the typical down payment required is 50%
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For Vacant Land (land that is serviced or partially serviced) the typical down payment required is 35%
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For Crown Land (which is public land owned by the provincial government), the down payment varies because it comes with a lot of restrictions and conditions.
Down Payment for different types of land in Ontario -
Why is the down payment on land so much higher than that for homes?
The down payment for land is much higher, especially for vacant and raw land, because you are not directly tethered to the land, unlike with a building like a house.
Also, it is even more challenging for you to obtain a loan for land, particularly for raw land, since you won't be at risk of losing any assets, such as your home if you don't make your mortgage payments. And the lender worries that it will be difficult for him to find a buyer for that land if you don't make your loan payments.
Down payment you need for land in Ontario, Canada
The down payment typically varies depending on the type of land you are purchasing; on average, it ranges from 35 to 40% of the purchase price, and it can even reach 50% for remote and inaccessible land.
Last Updated:
2023-02-27
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20 Real Estate Terms in Canada - List for Canadian Home Buyers, Sellers & Agents
Are you ready to conquer the Canadian real estate market, but feeling a bit daunted by the abundance of jargon and complexities? Don't worry, you're not alone! The real estate industry can be a minefield to navigate, but with the right knowledge, you'll be able to understand the ins and outs of the market and make informed decisions.
So, whether you're a first-time home buyer, a seasoned seller, or a budding real estate agent don't let the jargon hold you back- let's unlock the secrets of the Canadian real estate market with the ultimate 20 real estate terms that you need to navigate the minefield of the Canadian real estate market and come out victorious.
## 20 Real Estate Terms in Canada - A Comprehensive List
Knowing real estate terms is key to being a pro in the Canadian market. It's not just for first-time buyers or sellers; it's also for sellers and real estate agents who work here but are unaware of these terms. Because understanding the lingo is what sets you up for success here. For this reason, we have words ranging in complexity from simple words to complex terms.
## **20 Basic Real Estate Terms & Concepts to Know**
So buckle up and let's dive in deep into the real estate world.
### **1. Amortization**:
The length of time it will take to pay off a mortgage, calculated by dividing the total mortgage amount by the annual mortgage payments. It is the period over which the loan is planned to be paid off, usually in a range of 15-30 years.
### **2. Appraisal**:
An evaluation of a property's value by a professional appraiser. Appraisals help to determine the fair market value of a property, which is used to help set a fair price for the property.
### **3. Closing Costs**:
The expenses associated with purchasing a property, such as legal fees, land transfer taxes, and home inspection fees. These costs can add up to thousands of dollars and are typically paid at the time of closing.
### **4. Conditional Offer**:
An offer to purchase a property that is contingent upon certain conditions being met, such as the successful completion of a home inspection. It means that the offer is made on the condition that certain things happen, such as financing or home inspection.
### **5. Equity**:
The difference between the market value of a property and the outstanding balance on the mortgage. It is the portion of the property that the owner fully owns, and it increases over time as the mortgage is paid down and the property increases in value.
### **6. Fixed-Rate Mortgage**:
A mortgage with an [interest rate](https://getnewhouse.ca/blog/what-does-higher-interest-mean-for-housing-market-in-canada) that stays the same for the entire term of the loan. It means that the interest rate will not change for the duration of the loan, providing predictability and stability for the borrower.
### **7. Home Inspection**:
A comprehensive examination of a property's condition by a professional home inspector. Home inspection is an important step in the home buying process, as it can help identify any potential issues or defects with the property.
### **8. Interest Rate**:
The percentage at which the lender charges interest on a mortgage. It is the cost of borrowing money, and it can have a significant impact on the overall cost of the mortgage.
### **9. Land Transfer Tax**:
A tax paid by the purchaser when a property is transferred from one owner to another. It is a government tax that is paid on the transfer of property ownership and varies by province.
### **10. Listing Agreement**:
A contract between a property owner and a real estate agent that outlines the terms of the agency relationship. It outlines the services that the agent will provide, the length of the agreement, and the commission that will be paid to the agent.
Also, know the truth behind a [home listed for 1$ in the [Canadian Housing Market](https://getnewhouse.ca/blog/what-it-means-when-home-listed-for-one-dollar-in-canada).
### **11. Mortgage Broker**:
A professional who acts as an intermediary between borrowers and lenders to help them find the best mortgage product. They can help borrowers find the best mortgage rate and product that suits their needs.
### **12. Mortgage Pre-Approval**:
A conditional commitment from a lender to provide a mortgage for a certain amount, subject to the buyer meeting certain conditions. It is a letter from a lender that states that you are pre-approved for a mortgage up to a certain amount, subject to certain conditions.
### **13. Multiple Listing Service (MLS)**:
[MLS or Multiple Listing Service](https://getnewhouse.ca/article/what-is-mls-in-real-estate-canada) is a database of properties for sale by real estate agents. It is a system used by real estate agents to list properties for sale, and it is a valuable resource for buyers and sellers.
### **14. Power of Sale**:
A legal process that allows a lender to sell a property in order to recover unpaid mortgage debt if the borrower defaults on the mortgage. It is a provision in the mortgage agreement that gives the lender the right to sell the property in case of default.
### **15. Property Condition Disclosure Statement**:
A document that outlines any known issues or defects with a property. It is a statement provided by the seller that discloses any known issues or defects with the property.
### **16. Real Property Report (RPR)**:
A legal document that shows the boundaries, dimensions, and location of a property, as well as any improvements or structures on the property. It is a detailed survey that shows the property's boundaries and any structures or improvements on the property.
### **17. Title Insurance**:
Insurance that protects the buyer and the lender against any issues with the property's title or ownership. It protects against any hidden issues with the property's title, such as outstanding liens or encumbrances.
### **18. Underwriting**:
The process of evaluating a mortgage application to determine whether to approve the loan and what terms to offer. It is the process used by lenders to evaluate a borrower's creditworthiness and ability to repay the loan.
### **19. Zoning**:
Set of regulations established by local governments that determine how land can be used in a particular area, by dividing the municipality into different zones and regulating the development, density and allowed uses of the land.
### **20. Lease**:
A lease is a legal agreement between a landlord and tenant outlining the terms and conditions of renting a property, including the rental amount, length of the lease and responsibilities of both parties.
## **20 Advanced Real Estate Terms & Concepts to Know**
Now, let's get an idea on some of the advance terms used in the real estate industry.
## **1. ‘As Is’ clause**
Let's learn about this real estate concept from both a seller's and a buyer's point of view.
#### **For sellers**
"As-Is" clause means property is sold in current condition, with no promises or guarantees from the seller.
- It can be a quick and cost-effective option for sellers.
- But, it also means that the buyer will have to take on any necessary repairs or renovations.
- Legally required to disclose all issues with the property, including providing a detailed statement of condition, prepared by a professional, and based on an inspection.
#### **For buyers**
"As-Is" properties may come at a lower price, but they can also end up costing more if extensive repairs are needed.
- It's crucial to do a thorough inspection of the property to reveal any potential issues.
- Consider including a "subject to inspection" clause in the contract, which allows the buyer to back out if the inspection reveals more problems than initially disclosed by the seller.
- Important to proceed with caution and have a solid team of professionals, including a real estate agent, home inspector, and attorney, to minimize the risk.
For more details, refer [What does As-is clause mean in real estate?](https://getnewhouse.ca/article/what-does-as-is-where-clause-mean-real-estate-canada)
### **2. POA (Power of Attorney)**
POA is a legal document that allows you to give authority to another trustworthy person(s) to manage your property or money on your behalf.
- The person you appoint is called your attorney, and they do not have to be a lawyer.
- It is required that a person be ‘mentally capable’ at the time of signing a POA for it to be valid.
- Laws, requirements, and definitions of POA vary across provinces and territories in Canada.
- Real Estate and POA
In real estate, your attorney can manage buying or selling of real estate in your name, pay bills on your behalf, and even collect money owed to you, unless restricted to do so.
Your attorney does not become the owner of your property, they can only manage it on your behalf.
### Types of POA
- **General Power of attorney**: Allows your attorney to manage all or part of your finances and property only while you are mentally capable of managing your own affairs. Becomes invalid if you become mentally incapable. Can be limited to a particular task or time period.
- **Continuing power of attorney**: Allows your attorney to continue managing your finances and property even if you become mentally incapable to do so. Can start immediately or come into effect when you become mentally incapable.
### **3. MLS (Multiple Listing Service)**
MLS (Multiple Listing Service) is a database of properties for sale or rent, maintained by real estate agents and brokers.
- It allows agents to share information about properties with other agents in their area, increasing the chances of a sale or lease.
- MLS data is only available to real estate agents and brokers who are members of the service.
- It includes detailed information about properties, including photographs, prices, and descriptions.
- MLS can be a powerful tool for buyers, sellers, and real estate professionals to find and market properties.
### **4. CCIM (Certified commercial investment member)**
CCIM (Certified Commercial Investment Member) is a professional designation for commercial real estate professionals.
- It is awarded by the CCIM Institute after completing education and demonstrating experience.
- Recognized as mark of expertise in commercial and investment real estate.
- Only held by a select group of professionals.
- CCIMs are trained to analyze investment opportunities.
### **5. CPM (Certified Property Manager)**
CPM (Certified Property Manager) is a professional designation for property management professionals.
- It is awarded by the Institute of Real Estate Management (IREM) after individuals complete a rigorous education curriculum and demonstrate their experience in property management.
- The CPM designation is recognized as a mark of expertise in the property management industry.
- Only held by a select group of professionals.
- CPMs are trained to manage and maintain properties effectively and efficiently.
### **6. CMA (Comparative Market Analysis)**
CMA (Comparative Market Analysis) is a report that compares a property to similar properties in the same area.
- It is used to determine a property's estimated value, and to help with pricing decisions when buying or selling a property.
- A CMA includes information about recent sales and current listings of similar properties.
- It also includes information about market trends, such as average days on market and sale-to-list price ratios.
- CMA is a helpful tool for both sellers and buyers to have a better understanding of the market and make informed decisions.
### **7. CRE (Commercial Real Estate)**
CRE (Commercial Real Estate) refers to properties used for business or investment purposes.
- It includes properties such as office buildings, retail centers, industrial warehouses, and multifamily apartments.
- CRE transactions are generally more complex and involve more money compared to residential real estate transactions.
- CRE professionals such as brokers, investors, and property managers have specialized knowledge and skills to navigate the market.
- CRE can also include special purpose properties such as hotels, hospitals, and self-storage facilities.
### **8. CAC (Central Air-Conditioning)**
CAC (Central Air-Conditioning) is a type of air conditioning system that cools a building or home by circulating chilled air through ductwork.
- It typically uses a central unit, such as a furnace, to cool the air and distribute it throughout the building.
- CAC systems are often more efficient and can cool larger areas compared to individual room air conditioners.
- It can also improve air quality by filtering and circulating air throughout the building.
- CAC systems require regular maintenance to ensure they are functioning properly and efficiently.
### **9. COI (Certificate of Insurance)**
A Certificate of Insurance (COI) is a document that verifies that a specific insurance policy is in effect and provides details on the coverage provided.
- COIs are typically issued by insurance companies or their agents and are used to provide proof of insurance to third parties, such as lenders or landlords.
- COI includes: insured name, policy number, coverage type/limits, and insurance company/agent contact information.
- Some COIs may also include additional information, such as endorsements or exclusions to the policy.
- COIs are not the same as the insurance policy itself and do not provide all of the terms, conditions, and exclusions of the policy.
### **10. CMHC (Canada Mortgage and Housing Corporation)**
Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation of the Government of Canada.
- Its primary function is to provide mortgage loan insurance to Canadian banks and other lending institutions.
- This insurance helps protect lenders against losses if a borrower defaults on a mortgage loan.
- CMHC also conducts research and provides information on housing markets and trends, as well as housing-related programs and services.
- CMHC is funded by premiums paid by borrowers who take out mortgage loans that are insured by the corporation.
### **11. CMA (Comparative Market Analysis)**
A [Comparative Market Analysis (CMA)](https://getnewhouse.ca/article/what-is-cma-in-real-estate-canada) is a report that compares a property to similar properties that have recently sold or are currently on the market.
- It is used by real estate agents, appraisers, and homeowners to estimate the fair market value of a property.
- A CMA typically includes information such as the property's location, size, condition, and features as well as information on comparable properties, including their sale prices and other relevant details.
- It is based on recent sales data, it helps in determining the current market value of a property
- It is used to set the price for a property that is for sale or to be appraised.
- A CMA can also be used to evaluate the potential return on investment for a rental property or a fix and flip investment.
### **12. ARV (After Repair Value)**
After Repair Value (ARV) is a term used in real estate investing to refer to the estimated market value of a property after any necessary repairs or renovations have been completed
- It is used to determine the potential profitability of a fix-and-flip investment or the maximum purchase price for a property being considered for a rental or rehab project.
- ARV is calculated by taking the estimated market value of a property in its current condition, subtracting the cost of repairs and renovations, and then adding any potential value-adds such as an addition or a finished basement.
- It is an estimate of the potential of the property in the future after the repairs are done
- It helps in determining the maximum amount to be spent on the renovation and property purchase, so it doesn't exceed the potential value of the property after renovation.
### **13. LTV (Loan to Value)**
Loan-to-value (LTV) is a ratio used in the mortgage industry to indicate the size of a loan compared to the value of the property being used as collateral.
- It is calculated by dividing the loan amount by the value of the property.
- It is used by lenders to determine the risk of a loan and the creditworthiness of a borrower.
- A higher LTV ratio indicates a higher risk to the lender, as the borrower has less equity in the property.
- LTV is used to determine the minimum down payment, interest rate, and maximum loan amount
- Lenders usually have different LTV ratios for different types of properties and loans.
- A high LTV ratio may require a higher interest rate or mortgage insurance.
### **14. Cap Rate**
The Capitalization Rate, or Cap Rate, is a measure used in real estate investing to indicate the rate of return on a property based on its income and purchase price.
- It is calculated by dividing the property's net operating income by its current market value or purchase price.
- Cap Rate is a metric used to compare the potential returns of different properties.
- A higher cap rate indicates a higher return on investment, and a lower cap rate indicates a lower return.
- Cap rate is used to evaluate the performance of a property and its potential as an investment.
- Cap rate can be used to compare the yields of different properties and areas, even though it is a ratio, it does not take into account the cost of debt.
### **15. GDS (Gross Debt Service)**
Gross Debt Service (GDS) ratio is a measure used by mortgage lenders to determine a borrower's ability to afford the mortgage payments on a property.
- It is calculated by dividing the total mortgage payments, including principal, interest, property taxes, and heating costs, by the borrower's gross income.
- GDS is one of the two ratios used to qualify borrowers, the other being TDS (Total Debt Service).
- It is used to evaluate the borrower's ability to meet the housing cost, it is usually expressed as a percentage.
- Lenders usually have a maximum GDS ratio, typically between 31% and 39%
- A high GDS ratio may indicate that a borrower is over-extended and may have difficulty making mortgage payments.
- A low GDS ratio may indicate that a borrower has a lower risk of defaulting on the loan.
### **16. TDS (Total Debt Service)**
Total Debt Service (TDS) ratio is a measure used by mortgage lenders to determine a borrower's overall ability to afford the mortgage payments on a property, as well as their other debts and expenses.
- It is calculated by dividing the total monthly debt payments, including mortgage payments, credit card payments, car loans, and any other debts, by the borrower's gross income.
- TDS is one of the two ratios used to qualify borrowers, the other being GDS (Gross Debt Service).
- Lenders usually have a maximum TDS ratio, typically between 42% and 44%
- A high TDS ratio may indicate that a borrower is over-extended and may have difficulty making mortgage payments and other debts.
- A low TDS ratio may indicate that a borrower has a lower risk of defaulting on the loan and other debts.
### **17. JT (Joint Tenancy)**
Joint Tenancy is a type of co-ownership of property where two or more individuals own the property together.
- Each owner holds an equal and undivided interest in the property.
- Joint tenants have the right of survivorship, meaning that if one of the owners passes away, their interest in the property passes automatically to the remaining owners.
- In a joint tenancy, all parties have equal rights and responsibilities on the property
- Each joint tenant has the right to use the entire property.
- All the parties need to agree to sell the property or make any changes to it.
- In case of death, the share of the deceased tenant automatically goes to the surviving tenant/s.
### **18. TIC (Tenancy in Common)**
Tenancy in Common (TIC) is a type of co-ownership of property where two or more individuals own the property together, but each has a distinct and separate share of the property.
- No right of survivorship, meaning if one owner dies, their share does not automatically pass to the remaining owners.
- Allows multiple parties to invest in real estate together or pass assets onto beneficiaries.
- Each tenant owns a specific percentage of the property and can sell or dispose of their share.
- Tenants have right to use entire property, but cannot sell or make changes without agreement of other tenants.
- In case of death, share is passed on according to will or testamentary disposition, not automatically to surviving tenants.
- Different from Joint Tenancy which has equal shares and right of survivorship.
### **19. Lien**
- A lien is a legal claim on a property that gives a lender or other creditor the right to seize the property if the borrower or property owner fails to fulfill their obligation.
- Liens can be placed on property for unpaid debts, taxes, or other financial obligations.
- Liens can be either voluntary, such as a mortgage, or involuntary, such as a judgment lien.
- Liens are recorded in the public records, this means that they are visible to anyone who searches. the records.
- When the property is sold, the lien must be paid off before the sale can be completed.
- If the lien is not paid off the property may be foreclosed or seized by the creditor.
### **20. Ontario Agreement of Purchase and Sale**
The Agreement of Purchase and Sale (APS) is a legally binding contract between a buyer and a seller for the purchase of a property in the province of Ontario, Canada.
- Outlines terms and conditions including purchase price, closing date, and contingencies.
- Prepared by a real estate agent or lawyer, reviewed and signed by both parties, and a copy provided to each.
- Includes schedule of chattels and fixtures, closing date, and contingencies, if any.
- Legally binding contract, both parties have legal obligations and rights related to the sale.
- Buyer typically pays deposit held in trust until closing.
- Starting point for completion of sale transaction and ownership transfer.
## Knowing the Canadian Real Estate Concepts
The understanding of the real estate terms specific to Canada is essential for home buyers, sellers and agents in order to navigate the market and make informed decisions.
Being familiar with terms such as CMHC, ARV, LTV, Cap Rate, GDS, TDS, JT, TIC, CMA, APS, and others, can help you understand the mortgage process, evaluate properties, and negotiate the terms of a sale.
Whether you're a [first-time home buyer](https://getnewhouse.ca/blog/renting-vs-buying-home-canada-better), an experienced investor, or a real estate agent, having a solid understanding of these terms will help you make the most of the Canadian real estate market. Did we miss any important term here? Do you wish to include any other interesting concept on real estate in Canada, do comment and share your views.
Do I have to pay property tax on vacant land in Ontario, Canada?
Vacant land is the best choice for people looking to purchase land in Ontario to build their future home, for commercial use, or as an investment. Buying vacant land is exciting because there is more room for development, and it is always less expensive.
However, if you also own vacant land in Ontario and wondering if you are required to pay property tax on vacant land or not, then relax; you have come to the right place. So, to clear your question, let's find this!
## Do I have to pay property tax on vacant land in Ontario, Canada?
Property taxes are one way that local governments generate revenue. Local governments levy this tax on owners of real estate in the residential, commercial, and industrial sectors. **So, similar to any other type of real estate ownership, you usually need to pay property taxes on vacant land that you own.** The actual property tax will be determined by a number of elements, such as the property's assessed value, its intended use, and the municipal tax rate in Ontario.
This tax mostly depends on the size and location of the property because vacant land doesn't have any buildings or development to add significantly to the value. This percentage includes both the municipal rate and, if applicable, a provincial education tax rate and is set by the municipality in which your property is located.
## Does vacant land have a higher property tax?
No, the property tax on vacant land is comparatively lower. Because municipalities levy property taxes to cover the costs of providing services to properties, such as utilities, road maintenance, garbage disposal, policing, fire services, and more. As vacant land uses the city's services much less frequently, it may be subject to lower taxes. But it also depends on the land's intended zoning.
For instance, vacant residential land is taxed at the same rate as other residential properties in the City of Toronto, while vacant commercial or industrial land is taxed at a 30% discount from the full rate that applies.
## Property tax on vacant land in Ontario, Canada
Vacant land is also subjected to property tax in Ontario, Canada. However, if you want to calculate how much property tax you might owe, be sure to find the right tax rate for your municipality and property type or speak with a tax expert. Online property tax calculators will likely use the residential rate, which might not be the correct rate for your property.
Can a non-resident get a mortgage to purchase a house in Canada?
The Canadian real estate market is open to both residents of Canada and non-citizens who reside abroad. There are no restrictions on the kind or quantity of real estate that may be bought in Canada.
As a result, a lot of people are interested in buying real estate in Canada but are unable to do so due to a lack of available funds because buying a home or piece of property can be very expensive. Therefore, the majority of people require bank financing or a mortgage in order to buy a piece of land or a house.
So, today will determine whether a non-resident can get a mortgage to buy a home in Canada or not.
## Can a non-resident get a mortgage to buy a house in Canada?
Yes, non-residents who want to purchase a home in Canada can apply for a mortgage there. Although the interest rates are very similar, Canadian banks frequently demand a larger down payment from non-residents than they do from residents.
A **minimum of 35% of the home's value is typically required as a down payment** but these requirements may differ from bank to bank, with some being stricter than others.
However, in addition to the down payment, non-residents will often have to show the following as well:
- Employment verification letter (including income verification)
- Bank statements as proof of deposit(at least three months)
- Six months of financial statements or an international credit bureau report
- A Canadian bank account from which mortgage payments can be made.
There are several other lenders that offer mortgages. These lenders can offer a mortgage of up to 65% of the property’s value. You will also need a reference letter from your bank, bank statements for the previous three months, credit information, and tax returns to prove your ability to pay the mortgage.
Additionally, these different lenders may offer comparable products with different interest rates and terms. To make sure you're getting the best mortgage product for your needs, speak with several lenders.
Canada has substantial expat communities as well as many foreigners that visit for vacations, employment, or study for a short time. Anyone can purchase real estate in Canada, whether they are a citizen, a resident, or a non-resident. This means that you will be able to purchase land in Canada even if you are a non-resident who resides permanently in another nation.
But a frequent query that many individuals have is whether they must travel to Canada in order to purchase real estate while they are non-residents. So today we'll find out if you have to be physically present in Canada to purchase a property or not.
## Being a Non-resident, do I need to come to Canada to buy a property?
There are no restrictions on non-resident investors buying real estate or businesses in Canada. You are thus free to buy houses, businesses, commercial properties, or agricultural land. There is no requirement for residency or even physical presence in Canada. You can, in fact, look for properties online from anywhere in the world, work with an agent to do so, and even make a purchase.
However, you will need to travel to Canada at least twice if you want to buy a property there. The first time is to open a Canadian bank account so you can get Canadian financing. The second time is to sign all of the necessary paperwork. Foreign homebuyers are not permitted to grant powers of attorney for the purpose of remotely signing real estate documents.
**Important:** Until recently, anyone could purchase real estate in Canada. But, after the introduction of Foreign Home Buyer Ban effective from January 2023 any non-permanent residents and non-citizens won't be allowed to purchase residential property for a period of 2 years.
## Do you need to come to Canada to buy a property?
You can virtually anywhere in the world see a property online or by working with an agent to do so, and even make a purchase. However, there are specific phases of this process where you'll need to visit Canada, such as when you have to open a bank account, which, as we previously stated, is required for the purchase of real estate.
## Non-resident can get a mortgage to purchase a house in Canada
Yes, non-residents can get a mortgage in Canada to finance the purchase of a home in Canada.
And as far as mortgage interest rates go, both Canadians and non-residents are subject to the same rates as long as they meet the requirements for mortgage eligibility.
Do you pay Land Transfer Tax (LTT) when buying vacant land in Ontario, Canada?
People purchasing real estate in Canada, face a significant financial burden from the land transfer tax. When you buy land in Canada, you are required to pay a tax to the government or the municipality. The tax you pay is determined by the property's value, which is influenced by the type of land, and can differ significantly between the provinces where you are buying the land.
So, today we'll find out if buying vacant land in Ontario, Canada, is subject to Land Transfer Tax (LTT) or exempt from LTT.
## Do you pay Land Transfer Tax (LTT) when buying vacant land in Ontario, Canada?
Yes, you are required to pay Land Transfer Tax on any vacant land that you buy in Ontario. The taxes you pay on vacant land may be a bit different from the taxes you pay for other types of land. The amount of property tax you actually pay will depend on a number of factors, including the assessed value of your property, how it is used, and the applicable municipal tax rate.
Usually LTT on vacant land is calculated on the value of the property at the time of sale. But if you have a construction contract related to the purchase of the land, your transfer tax will be computed using the value of the land plus the value of the construction contract.
However, It is important to know that in Ontario, you will also be required to pay a municipal land transfer tax in addition to the provincial tax, that means doubling the amount of your final tax payment.
## Who pays Land Transfer Tax in Ontario, Canada?
The land transfer tax is the responsibility of the home buyer, not the home seller. When buying a home in Ontario, buyers should factor in the land transfer tax as one of their closing costs. These costs may also include the cost of getting a mortgage. Other closing costs for buyers include legal fees, registration fees, and home inspection fees, though land transfer tax makes up the majority of these.
## Land Transfer Tax when buying vacant land in Ontario, Canada
The vacant land is also subjected to Land Transfer Tax, which is calculated on the value of the property at the time of sale. However, a lot of other factors also influence the final tax, so one must conduct adequate research before buying real estate in Ontario.
Is Ajax in Ontario (Canada) a Good Place to Live?
Are you thinking of moving to Toronto suburbs? You might have you heard about Ajax, a popular town in Durham region in Ontario. Are you looking for a house, and wondering, **Is Ajax in Ontario, Canada a good and safe place to live?** Let's find out the answer while discussing the pros and cons of living in this area.
Ajax (Southern Ontario)
-----------------------
Located in the eastern part of the Greater Toronto Area(GTA), **Ajax** has become one of the most-sought for families and millennials. This is not surprising as this [**Toronto suburb area**](https://getnewhouse.ca/blog/10-best-toronto-suburbs-for-families-to-live-and-grow) has experienced the fastest growth over the years. It depicts a true reflection of rich cultural diversity, which makes it a melting pot of different cultures and cuisines. Another plus to it is that it has a lower crime rate than the Ontario average. This alone is enough to make it an appealing place for anyone escaping the hustle bustle of the city for a quieter life in the suburb area. Planning to move to Ajax?
Here is a definitive guide containing the pros and cons of living in Ajax to help you make informed decisions.
Advantages of Living in Ajax, Ontario
-------------------------------------
Let's have a look at some of the advantages of living in Ajax, Ontario:
### 1\. Surround Yourself with Nature
If you are looking for a place to get lost in nature, Ajax is the right one. Ajax boasts of picturesque lake with a wealth of green views. For ones, the Greenwood conservative area has beautiful scenery with a mix combo of grasslands, coniferous forests and a number of hiking trails. Whether you want to go hiking, fishing or skiing, this park is enough to get your weekend fun-filled. Moreover, you can decide to take a walk along the Paradise beach and enjoy a lazy afternoon with your family.
### 2\. So much to Enjoy
Synonymous with great gaming, horse racing, electronic table games, Ajax is one-stop-shop for all things entertainment. Ajax has been known for its Quarter horse racing since 1969. It hosts Canada's high-ranking quarter race track annually and it's one of the biggest attractions Ajax takes pride in. Aside from that, there is an Ajax casino where you can spend the evening trying your luck and enjoying the whole electronic game.
Need a beautiful kids day out? Children can have some adrenaline-pumping games at Endless fun.
### **3. Appreciate the Arts**
Ajax is remarkable for its rich history and culture. You can get immersed in various shows at St Francis centre that houses different varieties of performances, artists throughout the year. Visit one of the gallery spaces to take in the unique, beautiful work of art. Explore the many memorials, and art pieces showcased at the council chambers lobby of town hall. Art enthusiasts have got a lot to enjoy.
Also, don't miss to learn [**7 Reasons to Live in Stoney Creek, Ontario, Canada**](https://getnewhouse.ca/blog/reasons-to-live-in-stoney-creek-ontario-canada/)
### **4\. Great Neighbourhoods**
Ajax is not just along the side of lake Ontario, there are other great neighbourhood options that have garnered homeowners attention over the years. Duffin Bay, Riverside, Discovery Bay are among the many well-established regions. They feature a wide variety of home styles and prices, amenities, shopping malls and restaurants and many other perks to make your stay a good one.
### **5\. A Safe and Secure Environment**
According to areavibes.com, Ajax crime rates are 38 percent lower than the average and it's considered safer than 80 percent of other cities in Canada. This makes it safe and secure for families and individuals to live without fear of becoming victims of crimes.
### **6\. Affordable Real Estate**
When compared to other GTA places, Ajax housing and real estate is affordable. With inflation at its peak, and [**high mortgage interest rates**](https://getnewhouse.ca/blog/what-does-higher-interest-mean-for-housing-market-in-canada) little wonder why many people keep flocking from the city to this suburb area. Many who are looking to have a place they can call a home are betting on Ajax because of its affordability.
### 7\. A Welcome Place for All
People from all walks of life are welcome to make a home in Ajax. The residents make this a priority by organizing events and programs that promote cultural diversity and love. Not only is it a great way to have fun, it also brings people together and helps them connect on a deeper level.
Disadvantages of Living in Ajax, Ontario
----------------------------------------
Few drawbacks of living in a sub-urban city like Ajax are:
### 1\. High Property Tax
Not everything is greenery and roses in Ajax and it's sure has its own downsides. One of them is the high property tax which is one of the highest in Toronto. Because of the less population as compared to the metropolitan cities, this has make the town's tax rate to be on the increase. Although the properties are less expensive, the tax rate is one disadvantage to consider before moving in.
### 2\. High Traffic Congestion
Ajax has been notorious for difficult commutes as many struggle with trafficblockage especially during the rushing hours. The Highway 401 contribute to Canada's worst traffic bottlenecks. It runs through the eastern and western towns. This means it's the only route many people from Pickering and other communities passed through to and fro Toronto. This is one important aspect policy makers should look into in order to reduce congestion. The intersection at the Westney south of Kingston is also worst especially during the morning rush. Residents have complained it has make them miss their GO train which isn't all fun.
### 3\. You sure need a Car
No matter where you are in Ajax, you need a car for your daily conveniences. Whether you have to go shopping, visit plazas, dining out, groceries, you need a car to get you going. Besides, Ajax run on a rudimentary transit system and it isn't as robust as Toronto transit. If you plan to visit any city nearby, there aren't no transit system that runs frequently. It's also a hassle if you stay out late in downtown except you have a car. Hence, ensure you have access to a car in order to have a hassle-free stay in Ajax.
Do remember to explore the [**Best 10 Cities to Live in Ontario, Canada**](https://getnewhouse.ca/blog/top-10-best-cities-to-live-in-ontario-canada).
Living in Ajax, Ontario (Canada)
--------------------------------
Overall, Ajax is a **good place to live** to live with a lot of benefits to avail of. While some love the diversity, arts and culture and praise the housing affordability. Others find the limited transit system a big deal and couldn't cope with the heavy traffic. It all stems down on your needs.
Despite the downsides, Ajax still remain many favorites and it's better if you take the plunge and come find out everything it has to offer. Now, whether you are [**renting or buying a house in Ontario (Canada)**](https://getnewhouse.ca/blog/renting-vs-buying-home-canada-better/), the above details will be surely help you. A perfect guide to take an informed decision and ensure you have a successful stay in the town.
_After knowing the pros and cons of living in this city, what do you think? Is Ajax, Ontario a good place to live? Do share your views and experiences thereon._
Best Land Loan Options in Canada 2023
For many Canadians, investing in land can be a wise decision because it is said that "Real estate cannot be lost or stolen, nor can it be carried away". Land, whether for private or commercial use, can provide long-term benefits especially places like Canada. As a result nowadays, investment in land is considered as the safest if done with proper research and carefully. However, it is also known that buying land is costly, and many individuals don't have the enough money to buy that so they tend to go for borrowing money from their relatives or loan from the bank.
So, if you want to buy land in Canada and thinking to take loan then you must know the various types of loans especially for buying land. There are various types of land loans available in Canada, each of which is designed to allow people to refinance or purchase land there.
In this blog, you will explore the different options of land loans available to you, learn about the application cycle, and discover the interest rates associated with each decision. So, let's dive in.
## What is a Land Loan?
A land loan is basically a loan for buying land. It looks like a mortgage, but instead of buying a house, you're buying a land piece - could be a farm or just a vacant lot. But here's the one thing: depending on the lender's opinion and how well your finances appear, the land loan might either be secured or unsecured.
## Types of Land Loans in Canada
There are different types of land loans available in Canada. The most popular land loans are:
### **1. Raw or Vacant Land Loan**
If you want to buy a piece of land but it lacks infrastructure. This is where a raw land loan comes in. This loan type is primarily used to purchase undeveloped land with no plans or infrastructure. However, these loans are difficult to obtain because they carry a higher risk for the lenders because the land is more difficult to sell and conveys no pay. As a result, you'll almost certainly have to pay higher interest rates and make a larger down payment.
### **2. Serviced Land Loan or Lot Loan**
A serviced land loan is used to buy land with infrastructure such as electricity, water, and sewer. This type of loan is considered safer by lenders because it has some value and pay generation potential. As a result, serviced land loans may come with lower interest rates and a smaller [down payment requirements](https://getnewhouse.ca/article/how-much-down-payment-expected-for-land-ontario-canada).
### **3. Farm Land Loan or Agricultural Loan**
A farm land loan is used to purchase agricultural land, similar to a farm or ranch. This sort of loan is planned specifically for farmers and ranchers, and it can assist them with financing the purchase of farmland, hardware, and livestock. Farm land loans may accompany lower interest rates and down payment prerequisites as they are backed by the value of the farmland and the pay generated by farming.
### **4. Commercial Land Loan**
A commercial land loan is considered when we plan to buy land for commercial purposes, for example, building an office or retail space. This type of loan can assist business people with financing the purchase of land and development costs. Commercial land loans may comes with lower interest rates and down payment prerequisites as they are backed by the pay generated by the business.
## How to Qualify for a Land Loan in Canada?
Qualifying for a land loan in Canada can be more challenging than qualifying for a mortgage. Lenders consider land loans riskier as they are not backed by a physical plan that can generate pay. To qualify for a land loan, you may have to meet certain prerequisites, including:
- **Good Credit Score**
Having a good credit score is important while applying for a land loan. Lenders want to guarantee that you have a good track record of paying back obligations on time.
- **Adequate Income**
Lenders want to see that you have a stable pay and can afford the loan payments. They may anticipate that you should give proof of pay, for example, pay stubs or tax returns.
- **Down Payment**
Lenders may require a higher down payment for a land loan than a mortgage. A down payment of 20% or more may be supposed to get the loan.
- **Land Appraisal**
Lenders may require an appraisal of the land to guarantee that it is worth the loan amount. They may also want to know the potential for cash generating activities on the land.
- **Collateral**
Lenders may require collateral to secure the loan. This could incorporate other property or assets that you own.
## Where to Get a Land Loan in Canada?
There are lot of ways and options for getting a land loan in Canada. Yet, the most popular are-
### 1. Banks and Credit Unions
In Canada, the most popular options of land loans are banks and credit unions. Banks and credit unions offer a variety of land loan options and generally have explicit and strict requirements for credit scores, down payments, and different criteria that borrowers should meet to qualify for a loan.
### 2. Private Lenders
Another choice for land loans in Canada is to work with a private moneylender. Private lenders are individuals or companies that give loans without being part of a traditional financial institution. They typically have less restrictions and can be more adaptable with loan terms, however may charge higher interest rates to reduce the risk.
**Note** : While working with a private moneylender, it is important to take care of any outstanding concerns and research the bank to guarantee they are legitimate and reputable. You ought to also carefully audit the loan terms and understand the expenses and interest rates before agreeing to the loan.
## Land Loan Considerations
Before taking out a land loan, there are a couple of key considerations to remember, as it's the loan who drags towards the debt trap. So, you must know -
- **Purpose of the Land**
It is important to think about the reason for the land before taking out a loan. In the event that the land is for personal use or a small leisure activity farm, you may not require as much financing as you would for a large-scale development project.
- **Down Payment**
Many lenders require a down payment of at least 20% for land loans. This can be a significant amount, so it is important to factor this into your budget while considering a land purchase.
- **Interest Rates**
Interest rates for land loans can vary generally depends upon the moneylender, the loan term, and your credit history. It is important to look around and compare rates to guarantee you are getting the most ideal deal.
- **Loan Terms**
Loan terms for land loans can range from a couple of years to several decades. It is important to carefully audit the loan terms and guarantee you understand the repayment plan and any charges associated with the loan.
## Land Loan Options in Canada
Land loans can be a great choice for individuals and organizations hoping to purchase land in Canada. Whether you pick a traditional moneylender, a private bank, or a government-backed loan, it is important to carefully think about your options and pick the loan that best fits your requirements.
Before taking out a loan, it is important to carefully survey the loan terms, think about the reason for the land, factor in any down payments or charges, and guarantee you are getting the most ideal interest rate. With these factors as a top priority, you can make an informed decision and find the financing you really want to purchase your dream property.
Is Oakville in Ontario (Canada) a good place to live?
**Have you heard of Oakville in Ontario, Canada? Wondering if Oakville is a good place to live.** Let's get a clear picture of the pros and cons of living in a sub-urban city like Oakville.
To move from where you've previously to another new area is an exciting, but a tiring prospect. Not only do you need to research good places to live in, but you also need to plan, prepare, pack, and move. The packing process is sometimes fun, whereas the unpacking process is quite tedious. So, if you are thinking of moving to a new area in Canada, research the area.
Find out if the place is safe for your family, conducive, and affordable to live in. One prime example of a good place you can move to is Oakville, Canada. Think about nature, places of attraction, ease of transport, affordable housing, and low crime rates, **Oakville** has it all. In addition, you can invest in **real estate** in **Oakville**.
Oakville in Ontario, Canada - A Glimpse
---------------------------------------
Oakville is located in Ontario, Canada, in the northern part of the American continent. It is the biggest town among all towns in Ontario, with thousands of residents living there. When you look at the Canadian map, you will find Oakville on Lake Ontario. It is also closer to Ontario, but retains its suburban look and features. Therefore, it's a **good place to live** for people who love quiet areas.
Furthermore, Oakville is surrounded by wonderful places of attraction and nature. It's a place where you can rest assured of your family's safety. You can take your family out to enjoy the calming atmosphere of the Oakville environment. It's no wonder Canadians are relocating to Oakville every day.
Oakville Climate and Weather Conditions
---------------------------------------
Oakville's climate can be described as humid, especially in the summer season. In the winter season, Oakville has a dry and freezing temperature with lots of wind. However, Oakville doesn't freeze below three degrees, unlike other towns. According to weather statistics, Oakville has hot summers, so much so that people find ways to cool off. It can rise as high as ninety degrees during the hottest days.
Oakville Governing Council/Bodies
---------------------------------
The town has a governing town council that comprises the council members and the mayor. In addition, Oakville is divided into two provinces, and each province has its own representative members.
You may also like to explore [Best Toronto Suburbs for Families to Live & Grow](https://getnewhouse.ca/blog/10-best-toronto-suburbs-for-families-to-live-and-grow)
How Can You Benefit From Living in Oakville?
--------------------------------------------
Oakville Town has many things to offer its residents. Residents don't need to go to other towns to enjoy their parks. They can stay in Oakville and visits the many parks there. The best time to enjoy the parks is during the fall season. There are also lakes with stunning views in Oakville. Sports enthusiasts are not left behind as Oakville offers many outdoor activities.
Reasons, why you should stay in Oakville, are:
### 1\. Job Opportunities:
It may be due to its small population, but Oakville has different job vacancies for its residents. It is also worthwhile to note that several big firms are present in Oakville. Thus, if you plan to stay there, here are major hiring sectors you may choose from: education, healthcare, transport, automobile, and the government sector. Another employment option is to go and work in Toronto, since it's close by while you live in Oakville. You don't need to worry about transportation because Oakville has different modes of efficient transportation. Additionally, Oakville residents have the highest average income in Canada.
### 2\. Safety:
Oakville has a low crime rate, making it one of the safest Canadian towns to live in. The local police monitor the town and ensure the place is safe to live in. The law enforcement officers also maintain law and order in Oakville.
### 3\. Sports Facilities:
Sports enthusiasts and families with kids will adore Oakville for providing sports facilities. Nearly every Oakville resident is engaged in one form of sport or the other. Children who are active in sports can choose from golf, baseball, lacrosse, and soccer. Furthermore, Oakville's skating club is known as the largest Canadian skating club.
### 4\. Cultural Diversity:
Oakville has a diverse population with different cultures, religions, and traditions. So if you belong to a minority group, you'll feel at home in Oakville. Each cultural group is friendly and accepting of other cultural groups. Whether you are a Christian Muslim, Hindu, Sikh, Judaist, or Buddhist, you'll be welcome and find a place to worship.
Additionally, Oakville has thriving arts and culture centers and events in place. They are governed by councils who ensure everything goes smoothly. The Councils conduct film festivals, movie showings, and live stage performances. The town also holds events like concerts in an auditorium for residents to enjoy.
### 5\. Education:
Oakville has several universities, high schools, preschools, and kindergartens that are well-equipped. Its educational system is of a good standard. The schools are not too far from each other and have well-qualified teaching and non-teaching staff.
### 6\. Transportation:
Oakville has various means of transportation. It has two main highways, a Metro, and a railway station. Similarly, Oakville boasts of an airport that is close to the capital.
### 7\. Places of Attraction:
After a hard day at work, the next thing is to relax. Oakville has many relaxing places like the golf courses which are popular in Canada. There are media stations, waterways, lakes, parks, gardens, yacht clubs, and picturesque sceneries.
Why You May Re-Consider Living In Oakville? The Downsides
---------------------------------------------------------
No matter how beautiful a place is, it'll still have its downsides.
Here are some things you should know before moving to Oakville.
1. It is expensive to go to restaurants in Oakville, so many residents opt for fast food and takeaways.
2. The best thing is for you to have your own car to make it easy to move around. This is especially good for people with families and young ones.
3. House prices may increase shortly due to Oakville's proximity to Toronto.
Do remember to explore the [**Best 10 Cities to Live in Ontario, Canada**](https://getnewhouse.ca/blog/top-10-best-cities-to-live-in-ontario-canada).
Is Oakville a good place to live?
---------------------------------
Oakville has carved a niche for itself as an I.T and science town. This has attracted lots of **real estate** investors. Property developers continuously submit housing development proposals to the government.
To cap it all, the people living in **Oakville** are friendly and accommodating. So be rest assured that if you and your family move there, you'd enjoy the place.
Top 10 Best Cities to Live in Ontario, Canada
Are you thinking of moving to the Province of Ontario in Canada? Wondering, which city to move and settle down? Here we present a collection of the **10 Best Cities to Live in Ontario, Canada**.
Cities in Ontario, Canada
-------------------------
The **Ontario cities** offer greater access to housing, food, healthcare, employment, and quality of education. It also assures freedom, political stability, a quality environment, and job security. These cities are considered safe places to live and offer an incredible lifestyle. While there are amazing cities in this part of Canada, there are also some places to avoid. Here are the 10 best places to live in Ontario, Canada.
Best 10 Cities to Live in Ontario, Canada
-----------------------------------------
Let's catch up with the preferred Ontario cities and dig deeper into the pros and cons of living there.
1\. Burlington
--------------
Burlington is tagged as one of the best cities to live in Ontario. A great city located on Lake Ontario between Hamilton and Oakville. It is about a 45 to 60 minutes drive from Toronto and offers a good location and natural scenery. Its proximity to major industrial hubs and nearby cities makes [Burlington a great place to settle down](https://getnewhouse.ca/blog/is-burlington-a-good-place-to-live-ontario).
The average home price of a detached house in Burlington is about $1.1 million. The city is a waterfront city that offers a unique balance of greenspace, city living, and tranquility. Plus a bustling environment that features restaurants, nightlife, malls, and local businesses. Crime rates are lower when compared to major cities, making it a safe place to live.
2\. Oakville
------------
Oakville is a suburban town within the Halton Region and part of the Greater Toronto Area. It is known for its beauty, cleanliness, and safety, with green recreational spaces and several parks. The city is a family-friendly place to live, with excellent schools and family-oriented activities.
Oakville's median a detached house price is around $1.5 million. The city has been ranked as one of the best places to live in Canada for many reasons. The diversity of the housing stock and beautifully designed homes make it a desirable place for many residents.
To get more information, don't forget to discover, [**Is Oakville in Ontario a good place to live?**](https://getnewhouse.ca/blog/is-oakville-ontario-canada-good-place-to-live/)
3\. Waterloo
------------
Waterloo is the best for you if affordability is one of your prime concerns when moving to Ontario. It offers a unique blend of urban and rural living with a growing tech and innovation hub, top learning institutions, and business parks. Its proximity to Toronto also makes the region an attractive place to settle.
Waterloo's housing price is just over $700,000, making it far more affordable than the properties in Toronto. Also, there are job opportunities in Waterloo. So its residents do not necessarily need to find employment in Toronto.
4\. Thunder Bay
---------------
Do you want to live somewhere safe with an outdoor lifestyle and job opportunities? You might think of living in Thunder Bay in Ontario. It is a large city near Lake Superior. Its location on a freshwater lake makes it spectacular and nature friendly. There are many outdoor adventures for the residents. These include fishing, hunting, and hiking.
Also, this city is ideal for people who want reasonably affordable housing with many amenities.
5\. Stratford
-------------
Stratford is a city on the Avon River and one of the best places to settle in Ontario, Canada. The city offers the best of both worlds with the comforts of urban living alongside a small-town feeling. It is known for its incredible annual festivals.
Each year, a different part of the city acts a variety of the noble Shakespeare plays as drama viewed as part of their annual Stratford Festival. Stratford's weather is not harsh, and the crime rate is low compared to Ontario. The unemployment rate in Stratford is low due to the diverse job opportunities in the area. It's also a safe place to live.
6\. Kingston
------------
Kingston is a beautiful city with a lot of history and islands. It is family-friendly and thus suitable for anyone that wants a peaceful life for their children. The city has a cultural community, making it ideal for someone interested in theatre, arts, or music. Kingston has a good food scene and great restaurants, and the housing is affordable compared to other cities.
7\. Barrie
----------
Barrie is a city with every amenity you need to live a happy and fulfilled life. It offers city living on the beautiful Lake Simcoe in proximity to Toronto. The average cost of a home in Barrie is just over $700,000, with an abundance of nature, sports, and many activities.
Barrie's is home to several gourmet restaurants, cafes, bars, breweries, and nightclubs. The city also has a mountain resort and spa.
8\. Hamilton
------------
Hamilton is one of Canada’s leading industrial centers and the hub of an extensive fruit-growing district. It is considered one of the best places to live in Ontario, with natural landscapes, trails, waterfalls, and beautiful lookouts. It is known for its high-quality life, arts, heritage, and cultural scenes.
Hamilton is also conveniently located within a network of highways making it easy to commute to other cities for work or leisure activities.
9\. Toronto
-----------
Toronto, the Capital of Ontario Province, is one of the preferred cities to move not only for Canadians but immigrants too. The city has over two million residents and is one of the best places to live in Ontario. It has people from different communities and is the most populated city in Canada.
You also have a lot of [fun activities to do in Toronto](https://getnewhouse.ca/blog/what-are-best-fun-activities-in-toronto-in-ontario-in-canada-for-adults), and this makes it a favorite tourist destination.
Toronto is Canada’s financial capital and home to many private IT companies with a stable economy, making it conducive for business. It offers the perfect mix of business, culture, and entertainment and is one of the world’s most economically powerful cities.
However, it is an expensive city to live, owing to the rising inflation, increased housing rents, higher mortgage rates, etc. Toronto has an average home price of $1 million for a two bedroom house. Doesn't that sound too much? If yes, you can also think of moving to one of the [**Best Toronto Suburbs to live and grow**](https://getnewhouse.ca/blog/10-best-toronto-suburbs-for-families-to-live-and-grow).
No doubt, Toronto is one of the best options if finding good employment is your priority as there are opportunities across numerous industries.
10\. Ottawa
-----------
Do you prefer living in an urban environment where many things are going on? Then Ottawa is ideally the best place for you. It is one of the most affordable places to live in Canada, as the average price of a home is under $800000. Also, it is the best place to live for job opportunities across multiple sectors.
The city is rich in history from the buildings and museums. It is highly populated and the best place with beautiful nature for walking, skating and hiking. This beautiful city is known for hosting a series of festivals year-round with ideal and pleasant weather conditions. Ottawa is known for low crime rates and guaranteed healthcare services in the city.
**Note:** The housing prices stated above are based on **Housing Market Report for September 2022**. These are subject to change as per changes in market scenario. The Canadian real estate market prices are fluctuating at a much faster rate owing to changes in interest rates and demand/supply factors.
### Which are the best cities in Ontario for living?
Moving to one of the **best cities in Ontario** can be a big decision with a lot of challenges. Therefore, make adequate efforts to ensure you understand what you are getting yourself into. Do proper research, analyze the advantages and disadvantages of living in a particular city, and then go ahead to get your dream home.
_What do you think? Which is the best city to live in Ontario? Feel free to share your feedback and suggestions._
Can New Immigrants Buy a House in Canada?
Are you a newcomer wondering, **Can a new immigrant buy a house in Canada?** We have the answers to your query.
Moving to Canada with your family is a big step, and buying a new home there can be challenging. That is why many banks and lenders offer mortgage options for **new immigrants** to help them get settled. According to reports, the rate of immigrant homeowners has surpassed Canadian-born counterparts. Therefore, buying your own home as an immigrant in Canada is achievable.
Nothing beats the feeling of getting the keys to your first home in Canada as a new immigrant. But empowering yourself to make the best decision about your new home is very important.
What is an Immigrant Mortgage?
------------------------------
An immigrant mortgage is a special [newcomer mortgage program](https://fintrakk.com/mortgage-new-immigrants-canada-newcomer-programs/) offered by banks for new immigrants in Canada. These programs help them get a mortgage even when they do not meet the requirements for a regular mortgage. New immigrants in Canada are allowed to buy a home, even if they have just immigrated to the country.
They also qualify for a mortgage as long as they meet the standard financial requirements. As a new immigrant, navigating the rules and regulations can get overwhelming. So, we have put together a detailed guide to everything you need to know about buying a house in Canada.
Why it's difficult for New Immigrants to get Mortgage approved?
---------------------------------------------------------------
Things are not that easy as they seem to be! As a [**new immigrant to Canada**](https://getnewhouse.ca/blog/why-is-immigration-good-for-canada/), it's difficult to get your mortgage approved. Let's see why so.
### 1\. Lack of Canadian Employment History
One of the requirements for eligibility for a regular mortgage in Canada is Canadian employment history. Many banks want to ensure you’ve been working in the country for at least two years. These show that you have a stable level of income.
### 2\. Canadian Credit History
An established credit history shows how consistent and responsible you are with your finances. Banks need a credit report to see how you handle your debt. They want to know if you have missed any payments or made late payments. So, new immigrants with no credit history can face challenges.
Eligibility for a Mortgage as a New Immigrant in Canada
-------------------------------------------------------
Let's see how new immigrants are eligible to get mortgage approval.
### 1\. Migrated to Canada within the last 5 years
You must have immigrated to Canada within five years to be considered a new immigrant. Have you been staying in Canada for more than five years? If yes, you are no longer considered a new immigrant.
### 2\. Established Legal Status in Canada
New immigrants with a temporary or permanent residence are eligible. Those with a non-permanent resident with a work permit are also eligible.
### 3\. Working full time for 3 months
New immigrants do not need to have two years of employment history to get a mortgage. However, they must have at least three-month full-time employment history. You will need at least three months of full-time employment history. These laws exclude those that are relocated to Canada by their current employer.
### 4\. Have a 5% Down Payment
A 5% down payment is mandatory for a new immigrant to get a house in Canada. These down payments also vary from one agent to another. For example, some lenders may require a higher down payment if the house price is over $500,000.
### 5\. Meet Qualification Ratios
Your debt service ratio shows the percentage of your income that pays your debt. The higher this ratio, the more difficult it is to get a mortgage. This is because you are spending more of your income on service debt.
How to Buy Your First House in Canada?
--------------------------------------
Are you wishing to buy your first house in Canada? Here are few things to guide you.
### 1\. Have a Budget
According to reports, the average house prices have sky-rocketed in Canada in the past few years. This price is due to the astronomical cost of houses in places like Vancouver and Toronto. However, the price of houses are cooling down a bit due to [**high benchmark interest rates**](https://getnewhouse.ca/blog/what-are-best-fun-activities-in-toronto-in-ontario-in-canada-for-adults) and other regulations.
Keeping this in mind, new immigrants must have a budget when opting to get a house mortgage. They should know the down payment and monthly housing payment they can afford. Therefore, having a solid budget helps you understand how much house you can afford.
### 2\. Mortgage Approval Process
Mortgage approval helps estimate your potential mortgage payments. The process of getting a mortgage approval varies from state to state. It also depends on your eligibility. Most banks and mortgage lenders approve the maximum loan you can qualify for. So it is important to understand the requirements at your stage.
New immigrants must provide their income, assets, debts, and current employment information to get approval. After submitting this information, the bank or lender will evaluate the application. The application will be approved if they are qualified and rejected if they are not.
### 3\. Search for a Perfect House
It is time to search for your dream home. Your mortgage approval often determines the kind of house you will search for. As a newcomer, it is advisable to partner with an experienced real estate agent. Ask your neighbours and friends if they know any trustworthy realtor that can help you through the home buying process.
### 4\. Get Home Inspection Done
Home inspections help protect the buyer from any potentially serious and dangerous problems in the building. Therefore, it is paramount. But you will need to pay a fee to inspect the house. Your realtors or mortgage lenders can help you find a qualified home inspector if you don't have any. And yes, home inspection is very crucial part of the buying process. So, don't think of missing it out to save some money!
### 5\. Make an Offer
After inspecting the house, it is time to make an offer on the property. Making an offer in Canada requires putting down a deposit. However, this deposit is different from your down payment. The deposit shows the seller you are serious about buying the property. Your deposit will be added to your down payment when you close on the house. But it is non-refundable if you walk away.
### 6\. Sign the Papers
Buying and finalizing your house mortgage requires a lot of paperwork. You must first finalize your financing options and get your mortgage formally approved. These can be completed within a few weeks. Ask your realtor for help when navigating through the paperwork to ensure transparency. And here you are ready for getting the possession of your dream house on closing day!
Buying Home as a Newcomer to Canada
-----------------------------------
Canadian banks keep on updating their eligibility requirements with the newcomer mortgage program. So, you must be aware of the latest changes applicable. But, you will need to meet the basic criteria of [**home buying in Canada**](https://getnewhouse.ca/blog/renting-vs-buying-home-canada-better/) before fulfilling your housing dream.
Pre-construction Condos vs. Resale: Which is better investment in GTA, Ontario?
Are you thinking of buying a new home in Greater Toronto Area (GTA), Ontario, or any place in Canada for that matter? **Pre-construction Condo vs Resale: Which should you invest in?** This is a common question that comes to your mind while taking such a big financial decision. We are here to reduce your home buying stress and provide information on the **hot and trending housing topics** in Canada.
_"Congratulations on purchasing your new home"_ is a comment many people hope to hear. Owning a property is an achievement and a milestone. However, many people are confused about purchasing **real estate** properties. Should they go for a pre-construction or under-construction property or a resale property?
To clarify this situation, **a pre-construction house** (talking of condos here!) is **a house yet to be constructed or undergoing construction**. While **a resale house** is **a property that has been constructed** and buyers can pack in after payments.
Pre-construction Condos vs. Resale
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Now, let's check out **pre-construction condo vs. resale properties** to see which is better.
**Benefits of Purchasing a Re-sale Property**
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* **Its Tangibility:** Re-sale is tangible because prospective buyers go visit the properties to get a feel of the layouts. You can also physically assess the size of the buildings you want to purchase.
* **Affordable Deposit:** Re-sale deposit is cheaper than other properties. It is popular among those interested in **real estate in Canada**. Additionally, you only make the deposit once.
* **No Additional GST Cost:** Buyers don't need to pay additional GST after completion of the house.
* **Property Transfer Tax Exemption:** Residents of Canada who meet all tax exemption criteria are exempted from paying resale tax. They are exempted when they buy properties worth at most $500,000.
**Cons of Resale Properties**
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* **The properties are used properties:** Resale properties are mostly lived-in properties or used properties that the owner wants to sell. Because of this, some buildings might have old-fashioned styles.
* **Need for Renovation:** Since resale houses are old houses, new buyers need to renovate the buildings to make them look new. They might also need to change the decor inside the buildings.
* **Not easy to customize:** It isn't easy for you to change the decor, floorings, lighting, and so on.
* **No fixed payment:** No Fixed price means price negotiation is possible. However, this is also disadvantageous. Sellers can decide to organize bidding events where buyers compete to win the bid. Buyers may even purchase these properties at a price more than the original selling price.
You may also like to learn about **[Home Inspection Tips - Red Flags to Look for!](https://getnewhouse.ca/blog/home-inspection-tips-first-time-homebuyers-red-flags-to-look-for)**
**Pros of Pre-construction Condos**
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* **New Properties:** Unlike re-sale properties, pre-sale condos are newly constructed or undergoing construction. Therefore, the structures and designs are new and modern-looking.
* **Easily Customizable:** If you purchased a [**pre-construction property**](https://getnewhouse.ca/blog/things-to-know-before-buying-pre-construction-condo-in-gta-canada), you have the power to suggest changes while construction is ongoing. You can decide to change the floorings, ceiling patterns, color schemes, cabinets, and so on.
* **Long deposit period:** The gap between one deposit and the next increases. This makes it easy for buyers to spread their payments and meet up with the payments.
* **Property Transfer Tax Exemption (PTT) for Canadian Citizens or Residents:** Residents of Canada who meet the tax exemption criteria are exempted from paying presale tax. For newly built homes, the PTT exemption is for purchase price of $750,000 , on the higher side as compared to resale condos. So, if you are an eligible purchaser, you can enjoy some extra benefits.
**Disadvantages of Purchasing Pre-construction Condos**
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* **Intangible:** Purchasing a house that has not been built means you can only see the house plan. You can't physically visit the site to check out the house because it has not been built yet. The builders may decide to change the house measurements to differ from what you were initially shown.
* **Suddenly Rise in Interest rates or Mortgage Price:** Presale is different from resale properties where payment is a one-time or two-time payment. Presale payments can extend to two years or even ten years. The long payment time is quite risky because many things may happen to increase your mortgage. The [**interest rate**](https://getnewhouse.ca/blog/what-does-higher-interest-mean-for-housing-market-in-canada) in presale properties may increase suddenly.
Other factors may also contribute to your inability to complete the payments. For example, you may become unemployed after paying the initial deposits. Without a job and an income, you can't meet up with the mortgage. The tax rate on properties may increase a year after you made your initial deposits. All of these contribute to the inability of some people to meet up with their payments. If you are unable to complete payment after construction is completed, you may lose the property.
* **Expensive Deposit:** Presale deposits are three to five times higher than resale deposits.
* **Extra Charges:** Presale buyers must pay extra charges like GST charges.
Pre-construction Condos vs. Resale: Which is better?
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After weighing the benefits and disadvantages, choosing re-sale or pre-sale hinges on the buyer.
Are you sure you have the fund and the patience to wait? Then go for pre-sale condos that have modern looks.
However, if your source of funds is not sure and you don't want to wait, go for resale properties. Resale property is a safer option, and there is a guarantee that you will pack in after payments.
Which one would you prefer, investing in a [**new pre-construction property**](https://getnewhouse.ca/blog/is-new-construction-good-investment-property-ontario-canada/) or a re-sale one? The final decision is your, so make it wisely.