What are the First time Home Buyer Benefits in Canada?

Buying a home comes with lot of challenges especially the huge investment. And this becomes more challenging if you are a first-time home buyer in Canada, as it requires a huge amount buying there. But don't worry, there are many programs started by the government to help first-time home buyers. So, today you'll learn more about the first-time home buyer benefits in Canada, including government programs and tax incentives.

What are the First-Time Home Buyer Benefits in Canada?

The first-time home buyer's benefits in Canada include:

1. Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) lets you to withdraw funds from your Registered Retirement Savings Plans (RRSPs) to buy home or use for the down payment. This also allows you to pay back the withdrawn funds within a 15-year period.

2. First-Time Home Buyer Incentive (FTHBI)

Coming to the First-Time Home Buyer Incentive (FTHBI), then this program offers you additional down payment, which can be up to 5-10% of the home's purchase. This lowers mortgage carrying costs and makes it easier to afford the homeownership. And also the recent changes limit the government's share in a home's appreciation and depreciation, benefiting more homeowners.

To qualify for this program, you as a buyer must be a first-time home buyer who has not owned any home before this or have not occupied the home owned by a spouse within the past four years.

This additionally make it easy for the first-time home buyer to save the amount.

3. GST/HST New Housing Rebate

The GST/HST New Housing Rebate program is very helpful when it comes to cutting the additional expenses that go with Goods and Services Tax (GST) and Harmonized Sales Tax (HST). Because this offers a tax rebate and reduces the home buying cost.

So, to qualify for the rebate, two criteria must be met: you must have bought a new or substantially renovated home, and you or a relative must live in the home as your primary residence.

4. First-Time Home Buyers' Tax Credit (HBTC)

This program offers a relaxation of up to $750, but there are some eligibility criteria to keep in mind. To qualify, you must have purchased a home in the same year you're claiming the credit, and neither you nor your partner can have owned and lived in another home in the previous four years

First time Home Buyer Benefits in Canada

There are lot of programs started by the Canadian government for the first-time home buyers like the Home Buyers' Plan, First-Time Home Buyer Incentive, Land Transfer Tax Rebates, GST/HST New Housing Rebate, and First-Time Home Buyers' Tax Credit that can help first-time home buyers if they understand the eligibility and program thoroughly. So, before you start your home search, you must research the programs and incentives available in your province or territory to see how they can help you achieve your dream of owning a home.

Last Updated:

2023-05-03

Real Estate Canada

first-time home buyers

real estate canada

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canadian housing market

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.

Will The Housing Market Crash in Canada? Reasons

Looking at the current scenario, you might be wondering, **Will The Housing Market Crash in Canada?** Not sure, which way the Canadian real estate market is heading? Here we discuss how the housing market boom is winding down and how it impacts home buyers and sellers. Canadian Housing Market ----------------------- Analysts say that Canadian household prices will fall by up to 20% this year as rising interest rates impact the country's thriving real estate industry. Mortgage rates are expected to rise once more as the Bank of Canada vigorously raises interest rates to combat spiraling inflation. Economists predict that higher borrowing rates will cause significant price drops in some of the most volatile markets. The COVID-19 pandemic sparked a surge in activity in the Canadian housing market. The combination of lower interest rates and historic fiscal support urged many Canadians to update their accommodation. As a result, nearly all metrics of housing market activity skyrocketed. The increase in housing-related borrowing, expenditure and investment helped prevent worse economic and financial outcomes during the subsequent recession. Recent Boom in The Housing Market --------------------------------- Who could have anticipated that a global pandemic would be sending the Canadian real estate market into hyperdrive? After breaking sales numbers across the country in 2020, those records were broken again in 2021, as demand continued to surpass the number of available properties, pushing up costs. Add in rising inflation, and it will take "years" for the market to rectify itself and come back to pre-pandemic levels, according to the government's December financial update. With each passing month, Canada's red-hot property market rages on, showing no signs of abating. More than 580,000 residences were bought and sold in the first ten months of 2021 alone, outpacing the total for the entire past year, when a record 552,423 homes changed hands. Overall, the nationwide MLS Home Price Index ended the year up a record 25.3% from the previous year. How The Canadian Housing Market is stabilizing? ----------------------------------------------- The real estate market is now displaying signs of cooling. In September, house price appreciation slowed to its weakest pace in seven months. Permits to build and home sales appear to have exceeded in March, with data from the previous five months indicating a visible slowdown. Furthermore, raw material prices are responding to normalizing demand. The second-quarter GDP report revealed a significant decrease in commissions and fees regarding sales activity. It is coherent with Canadian Real Estate Association data, which shows a 15% year-over-year decrease in total transactions. The market's supply side is becoming depleted. The COVID-19 crisis drove many Canadians to purchase new residences, with low-interest rates and a flood of fiscal assistance inspiring high demand. Aside from the historically low borrowing rates, pandemic-induced shifts in choices drove potential buyers to seek out larger homes. However, with the mass acceptance of vaccination and adjusting to the new normal, this dynamic appears to be nearing its end. House price growth is now starting to slow. Increases in new-home prices over the previous year peaked in May. Interest rates remain expected to rise as the Federals reduce its capital spending. It is anticipated that the bank's monetary stimulus programs will end in early 2022, but lawmakers will allow investments to mature off the income statement rather than engaging in a full hinge of selling securities. The end of the programs will mark the first interest rate inflexion point. Factors Contributing to Slowdown of Housing Boom in Canada ---------------------------------------------------------- Some of the crucial factors to note are: ### 1.Rapid growth in the last two years One of the main reasons people see the Canadian housing market bubble as an obvious danger right now is the market's speed over the last two years. While prices have been rising for decades, we saw an unparalleled acceleration in 2020 and 2021. Simultaneously, interest rates were good enough to allow Canadian consumer debt to reach new highs, making us even more susceptible to potential economic shocks. There is the psychological component that has been observed in recent years of people wanting to buy for fear of being left out. Not only were valuations high, but so were sales, implying that an even larger number of people purchased at high prices. While there are aspects like the mortgage stress test, there are ways around them, and these high-risk loans combined with amazingly high debts could spell trouble when interest rates rise. ### 2.Prices still have room to slip. A drop in house values is one of the factors that has been widely anticipated for the next year or two. RBC Economics recently estimated that home price growth would slow through 2022 and that home prices would fall in 2023. Higher interest rates are already impacting urban centers like Toronto, where prices are falling after reaching a peak. A drop in housing values is not the same as a bubble burst. A slow decline is preferable to continue price increases. What this does show is that there is a very real possibility that the market will falter. Things will not be as bad if the price decline is well handled and incremental. ### 3.Interest Rates and Rising Prices With record-low interest rates over the last two decades, the Canadian economy escaped the pandemic relatively unharmed. However, it also increased inflation, and we are now facing the consequences. House prices are already beginning to react as the [**Bank of Canada raises interest rates**](https://getnewhouse.ca/blog/what-does-higher-interest-mean-for-housing-market-in-canada). However, there is still plenty of unfulfilled demand to keep prices rising for the time being. As interest rates increase to fight inflation, there is a risk of a recession, which could significantly reduce activity in the Canadian market and cause many to offload, causing the market to fall. Again, it all boils down to how quickly changes can occur. ### 4.Government Rules and Regulations One of the most recent notable slowdowns in Canadian home prices occurred in 2016 and 2017 when government agencies enacted a slew of new housing restrictions to help stabilize the market. The new changes were effective for a time until home values began to rise again. This demonstrates, at the very least, that government regulation can affect buyer sentiment. Will Canadian Housing Market Crash? ----------------------------------- While the Canadian bubble could erupt this year, it appears to be a less likely scenario overall. The prices are stabilizing a bit, but the housing supply issue still exists. With massive number of immigrants pouring in the coming years, it would be interesting to watch this price correction. After all, [**new immigrant home buying**](https://getnewhouse.ca/blog/can-new-immigrant-buy-house-in-canada/) dreams become even more stronger after being here for sometime. And, houses are in limited supply! That being said, no one can predict if the market will crash or simply stabilize. Rising inflation, high interest rates coupled with reduced purchasing power will definitely impact the prospective buyers. However, as an investor, it is critical to understand the possible routes you may take. So, prepare and capitalize on opportunities while safeguarding yourself from losses. Observe the ongoing changes carefully and take wise steps in the dynamic Canadian Housing Market. _Wishing to share your opinion on the trending housing market in Canada? Fee free to discuss here._

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.

What it means when a home is listed for 1$ in Canada?

Have you ever seen a house listed in Canada with a price tag of just $1? Yes, you read that right - just one dollar! I am sure at that time, you must be wondering like whether it's some kind of joke or there is actually something wrong with the property. But let me tell you that, if you are into real estate or know something about it then it's not a new thing for you to see homes being listed for lower prices than their actual price. But a property listed at $1 is something that is really hard to believe, isn't? Don't worry! Even if you still not aware of this then today you are going to find out the meaning behind a home listed for $1 in Canada. Navigate through some points that buyers should be aware of before making an offer for such properties. So, why are you still waiting? Head on to know it! ## Why Homes Aren't Actually Listed for $1 in Canada? First of all, it's important for you to understand that a home listed for $1 in Canada is not actually legal. The Canadian Real Estate Association (CREA) has strict rules and regulations that made it very clear that properties should be listed at their fair market value. And that value is determined by comparing the property to other similar homes in the area that have recently sold. Therefore, a home cannot be listed for significantly less than its fair market value. So, why do we see homes listed for $1 in Canada? The answer simply lies in the marketing tactics. By listing a home for a very low price, sellers and their agents try generate interest and excitement around the property. In the hope of attracting more potential buyers towards the property. ## The Marketing Strategy Behind $1 Listings Now you understood that it's a marketing gimmick but how does it works let's understand. The promotional strategy behind $1 home listings is actually quite simple. When a seller lists their home or any property for $1, it immediately catches the eye of potential buyers. And it generates a buzz and excitement among them, making the property seem like a once-in-a-lifetime opportunity and they immediately rush to it. The seller and their agent hope that this will attract a large number of potential buyers to the property and that's what it actually does. It drives up competition and ultimately leading to a higher selling price. The tactic has been used successfully in the past, with some properties even selling for millions of dollars despite being initially listed for just $1. There are many such examples like 60 West 1st Street, Hamilton (sold for over $800,000) , 1801 – 215 Queen Street East, Brampton (sold under $400,000) and many more such examples are there. But the point here is, you must remember that these cases are the exception rather than the rule. More often than not, a home listed for $1 will sell for much more than the initial listing price, but still less than its fair market value. ## Risks and Drawbacks of Purchasing a $1 Listed Home Now, let's see what are the risks that are hidden behind the tag $1. While $1 home listings may seem like a steal, buyers should be aware of the potential risks and drawbacks that comes with this. These properties may have significant issues or require major renovations, which could end up costing the buyer much more in the long run. Additionally, the competition for these properties can be fierce, leading to a bidding war and driving up the price beyond what the buyer is willing to pay. ## What to Consider Before Purchasing a $1 Listed Home? If you're considering purchasing a home listed for $1, then it's utmost important to do your homework properly. Before you jump into purchasing a home listed at a dollar, it's crucial to research the property thoroughly, you can talk to the local sellers or visit the property and try to assess any potential issues or renovation needs. It's also a good idea to work with an experienced and trusted real estate agent so that he can guide you through the negotiation and bidding process. But, always keep in mind that the final selling price of the home will likely be much higher than the initial $1 listing price. Another significant thing to consider here is the costs like closing costs, property taxes, and maintenance costs that came up with purchasing a home. These costs can add up quickly and can increase the real home buying price. So it's important to have a proper understanding of the financial commitment involved before making any offer. You may also like to learn about **[Home Inspection Tips - Red Flags to Look for!](https://getnewhouse.ca/blog/home-inspection-tips-first-time-homebuyers-red-flags-to-look-for)** ## What it means when a home listed for 1$ in Canada? A home listed for $1 in Canada is most likely a marketing strategy in order to generate interest in the property. One might ponder, is there some issue with the property or home that made it to list on $1 tag? Whatever the reason may be, as a buyers you should should be aware that the actual selling price will be determined through negotiation or a bidding process. There may be risks and drawbacks to purchasing a property initially listed for a very low price. Don't forget to do thorough research, work with a trusted real estate agent, and carefully analyze all factors before making a decision. So, the next time you come across a 1$ listed home in Canada, act smart and think about the idea and purpose behind such a listing.

Who qualifies for Canada First Time Home Buyer Incentive?

The Canada First Time Home Buyer Incentive program is launched by the Canadian Government to help people buy their first home. But, it's essential to meet specific requirements and eligibility criteria to benefit from the program. So, here we will learn who qualifies for the Canada First Time Home Buyer Incentive. ## Who qualifies for Canada First Time Home Buyer Incentive? To be eligible for the Canada First Time Home Buyer Incentive, there are certain requirements that must be met, here are they- ## 1. First Home Purchase The first and most important criterion for eligibility is that the buyer must not own any house before that and it should be his first home. This means if you own any home then you will not be eligible for this. ## 2. Down Payment Secondly, to participate in the program, the buyer must have a minimum down payment of 5% of the purchase price. This can come from personal savings, a loan, or a gift from family. ## 3. Qualifying Income Thirdly, the buyer's yearly income cannot be more than $120,000, including everyone listed on the mortgage application. even if they are not first-time homebuyers. ## 4. Purchase Price Finally, the home's price cannot exceed $500,000, which makes the program available to more people and prevents it from being used for expensive properties. ## 5. Other Considerations As the program's main focus is to help people who are actually struggling to buy a home. Additionally, there are certain restrictions or say limits on the use of the shared equity mortgage. For example, you cannot use it for financing a rental property or a vacation home. ## 6. Repayment Another important point to keep in mind is that, you will need to pay back the shared equity mortgage when you will sell the home or after 25 years of buying, whichever comes first. ## Canada First Time Home Buyer Incentive First Time Home Buyer Incentive is a useful program if you are a first time home buyer and can't afford buying a home. But this is beneficial only if you understand the eligibility criteria, the restrictions on the use of the shared equity mortgage and it's repayment time properly. So, firstly understand it the program and only then go for it.

Things To Know Before Buying Pre-construction Condo In GTA, Canada

Are you planning to buy a Condominium in the Greater Toronto Area, Canada? Here we discuss few important **Things To Know Before Buying A Pre-construction Condo In** Durham, Halton, Peel, and York region in Canada. One of the reasons for the development and construction of more condo projects in Greater Toronto Area (GTA) is simply because there is high demand for condos. Prospective condo owners can pre-purchase units before they are developed to help fund the development of condos. There are different advantages to buying condos during the pre-construction stage as they are more affordable than houses. Buying pre-construction condos is considered a good way to enter the **real estate** market in Toronto. But the process of financing and buying condos is different from buying a resale home. If you are considering buying a pre-construction condo in GTA or [**Toronto sub-urban areas**](https://getnewhouse.ca/blog/10-best-toronto-suburbs-for-families-to-live-and-grow), there are certain things you need to know. This includes the home buying process, the pros and cons and many other crucial factors. So, read on as we dive into it in this post. Advantages Of Buying Pre-Construction Condo ------------------------------------------- ### 1\. Minimum Down Payment When you buy your condo at the pre-construction stage it helps you to purchase one with a minimum down payment while you watch your condo value increase. In other words, you can buy a home at today's price and enjoy your home as the value increases over time. Normally when buying a pre-construction condo you are required to pay a 20% deposit of the total amount. But the down payment is broken down into installments of 5% which should be paid throughout the construction project. This means you can secure a condo unit with just 5% of the purchase price. The complete payment can run from 2 to 4 years depending on how long the project lasts. ### 2\. Customization Possibilities Buying a pre-construction condo allows you to build, customize and improve your condo to your preferences and style. The customization you added to your condo can help increase the resale value and also differentiate it from your neighbours. This can help you save money since there is no need to rebuild or renovate. Also, you can choose the countertops and appliances that will be installed in your unit. ### 3\. Cost-effective Within the first few years, there will be no need for maintenance since the condo is new when compared to older buildings. Also, the construction will be made with new material which makes your home more energy-efficient. As a result, the cost of utility bills and ownership can be reduced. So, [**new construction condo**](https://getnewhouse.ca/blog/pre-construction-condo-vs-resale-investment-better-gta-canada/) does save on your repair and renovation bills. Living in a condo means the cost of maintaining the building will be shared among the residents. The cost includes the maintenance of the communal areas, repairs for the building and every other thing that is done on the building in general. This can be of great benefit to those that want a low maintenance home. Disadvantages Of Buying A Pre-Construction Condo ------------------------------------------------ ### 1\. Joint Property Buying a condo means you are jointly owning a property with other people you might not know. Also, there is a possibility that the people in the neighborhood will keep changing every time. You will only be in control of your unit and the influence you will have in terms of making group decisions concerning the complex will be limited. ### 2\. Various Fees Apart from the normal fees that you are responsible for such as condo and purchase fees, closing costs and other fees to pay. There are various fees attached to buying a condo and they can vary depending on the amenities in your complex. You will continue to pay condo fees and other dues in case of any development in the complex. ### 3\. Delay or Cancellation of Construction Project The issue of delay in construction is inevitable. Delays can occur as extreme weather conditions, delays in the supply chain of material or other financial problems. The worse scenario is the cancellation of the construction project which can be a result of different reasons. It could be because the developers are unable to get enough pre-construction buyers, insufficient funds and more. But in case of any cancellation of a project, you don’t have to worry as your deposit will be given back to you. ### 4\. The Process Of Buying A Pre-Construction Condo One of the most appealing aspects of [**buying a pre-construction condo**](https://getnewhouse.ca/blog/pre-construction-condo-vs-resale-investment-better-gta-canada/) is that you don't have to pay the deposit in full at once. The payment can be done in installments depending on the developers. Usually, the down payment or deposit should be 20% of the purchase price but the payment can be done within six months. So you can pay 5% of the purchase price to secure your unit and the rest every other month. ### 5\. The Cooling Off Period Some provinces in Canada impose a cooling-off period after making a deposit payment for a pre-construction unit to ensure you are not pressured to decide as a result of a limited supply of units. Depending on your province it can range from 7 to 10 days during which you are free to back out of the purchase agreement without repercussions. During this time is when you can choose to sign and secure the unit as well as the price if you like the unit. You don't have to wait that long if you like the place because the price can increase or the units sold out. You have the time to do all the necessary paperwork and means to finance the remaining payment. If you want to consult your lawyer or research the developers or project this is the time for that. ### 6\. Occupancy Period and Fee During this period buyers can move into their condo before the completion of the entire building. It is also referred to as interim occupancy whereby a buyer can occupy the condo and be paying the builder an occupancy fee. You may also like to discover [10 Steps to Build a Successful Home Renovation Business in Canada ](https://getnewhouse.ca/blog/steps-to-build-successful-home-renovation-business-in-canada) Buying Pre-construction Condo: Key Takeaways -------------------------------------------- Buying a pre-construction condo is not as easy as it seems. This is why you should consider the advantages and disadvantages before making a decision. When it comes to buying pre-construction condos, location is very important since you will be sharing space with people. So, if you are planning to invest in **real estate Canada** through pre-construction condos, there are lots of places to buy pre-construction condos in the Greater Toronto area. And if you have made up your mind, don't miss to explore a whole lot of projects at [**GetNewHouse**](https://getnewhouse.ca/). _Discover fresh listings and new range of condominiums to choose from!_

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.

Why is Immigration good for Canada?

Are you planning to immigrate to Canada? Great News! But, have you ever analyzed, **Why is Immigration good for Canada?** Let's understand why Canada welcomes more people and why it will keep doing so in the coming years. Immigration to Canada --------------------- **Immigration to Canada** has increased since the anti-immigration scandals and policies in the United States. Many immigrants are now choosing Canada as a place to start a new life. These have put the country on the world stage as an alternative place to live their dreams. Canada has always been a country that welcomes immigrants. But the United States' recent approach to immigration has led more immigrants to turn to Canada as an alternative. Why Immigration is good for Canadian Economy? --------------------------------------------- Read on as we explain why immigrants are beneficial to Canada's economy. 1\. Boost the Canadian Economy ------------------------------ The number of people working and paying taxes in every country is often the strength of its economy. Immigrants fill gaps in the labour force, pay taxes, and spend money on goods, housing, and transportation. The money helps in funding the country's public services. Canada needs qualified people to fill in various vacancies across its different provinces. Professionals or investors, whoever comes will be boosting the Canadian economy in one way or the other. 2\. Meet Labour Market Needs ---------------------------- Canada’s labour force has continued to grow every year due to immigrants. If it weren’t for immigrants, employers would have trouble finding enough qualified workers to fill available jobs. This is because Canadians are living longer and having fewer children. More people are also retiring, and there are fewer students in schools. These have limited the Canadian-born potential workers. Moreover, there has been an acute shortage of staff in a number of fields. So, the immigrants coming to Canada will help reduce this gap. 3\. Improve Health and Social services -------------------------------------- Many immigrants in Canada are young and economically active. They contribute more than they receive in benefits over their lifetime. According to reports, more than 335,000 immigrants work in health-related occupations. 20% of people as sports coaches in Canada are immigrants. One-third of people working in scientific research and development services are non-Canadians. Further, immigrant doctors, nurses, other staff, etc. can contribute in improving the stressed healthcare system in the country. However, this is possible after attaining the necessary qualification and experience. 4\. Sustain Canada's Education System ------------------------------------- International students contribute more than $21 billion to the Canadian economy every year. These include student spending and tuition. This is more than Canada’s exports of auto parts and lumber. International education is also an important pillar of Canada’s long-term competitiveness. More than 20% of all students enrolled in maths, computer, and information sciences programs are non-Canadians. Also, 15% of students enrolled in architecture, engineering, and related programs are international students. These expose Canadians to new cultures and ideas. It also stimulates innovation and develops cross-cultural competencies in the country. And, a number of these students stay on work permits or become Permanent Residents and then citizens. So, gradually they become a crucial part of the country's growth. 5\. Improve Trade Ties ---------------------- Many immigrants in Canada are entrepreneurial. They create jobs for Canadians and non-Canadians in all sectors of the country. These include construction, health care, retail trades, professional services, and many more. Immigrants have a desire to import goods from their home countries. They also export more because of their networks in their home countries. These broaden the variety of imports to export Canada, improving trade ties. Why Immigration is important for Canada? ---------------------------------------- Talking specifically, immigration is essential for the progress of a developed country like Canada. Here are the reasons to justify it. 1\. Support Ageing Population ----------------------------- The Canadian government uses the income tax paid by people working in Canada to support retired Canadians. Immigrants working in Canada have helped keep the economy growing and maintain its commitments to retired workers. Without immigrants, younger Canadians would pay more income tax per person. According to reports, 80% of working immigrants are under 45 years. This means they will have plenty of working years. These will also sustain the ageing Canadians 2\. Adjust to Canadian Society ------------------------------ The earnings of immigrants often match those of an average Canadian after a few years. These give them a sense of belonging. Some economic immigrants also catch up much more quickly within their first year. These make them more active in Canadian society, and many of them are members of social organizations. 3\. Real Estate Investment in Canada ------------------------------------ The great thing about investing in real estate in Canada is that it has no shortage of options. You can buy the property and manage it yourself. You can also take a hands-off approach and invest in a fund. Ultimately, you will find a method that fits your budget and schedule. Let’s look at the common ways to invest in real estate to know which ones might be best for you. ### Buy a House When you [**buy a home as new immigrant**](https://getnewhouse.ca/blog/can-new-immigrant-buy-house-in-canada/), you are putting your money in a long-term investment called _equity_. As your home increases in value, your equity increases. Also, you get a tax exemption for capital gain if you live there for most of the year. ### Buy Commercial Properties Investing in commercial property means buying and renting out space where people will work. Commercial property includes malls, shopping centres, industrial complexes, grocery stores, and offices. But it requires a large upfront investment. ### **Rent out Residential Properties** Becoming a landlord is not a bad idea as more Canadians are renting for long periods. As a property investor, you could rent out single-family homes, condos, apartments, duplexes, or even townhouses. These produce extra cash flow, and you could also benefit from the long-term appreciation of your property. **Real estate investment** could be a smart choice as an immigrant in Canada. You can also diversify your investments and create a solid stream of income till your retirement. You may also like to explore [**Best Place in Canada for Indian Immigrants**](https://getnewhouse.ca/blog/which-is-the-best-place-to-live-in-canada-for-indian-immigrants) Immigration in Canada --------------------- To conclude, we can say that immigrants contribute immensely to the Canadian economy. Not only do immigrants to Canada fill in the labour shortage gaps, but play a vital role in the country's progress.

Do I have to pay sales tax when buying land in Ontario, Canada?

Are you planning to own property in Canada? This can surely turn out to be a profitable venture if you grab information on the Canadian tax laws that are applicable to real estate investments. Canada has regionally different property taxes. However, there are times when many people are aware of taxes but are unsure whether a certain tax is paid when buying or selling or if it is paid by the buyer or seller. Since sales tax is also a similar tax about which many people still have confusion, in order to clear that up today, we'll see if sales tax is paid when buying a property in Ontario, Canada. We will understand this from the point of view of a Buyer. ## Do I have to pay sales tax when buying land in Ontario, Canada? **No, you don't have to pay the sales tax when buying property in Ontario, Canada**. Sales taxes are paid after the selling of the property and comes up in different forms like Provincial Sales Taxes (PST) . But, this does not mean that you will be exempt from paying taxes on land purchases. If you are buying land in Ontario, you will have to pay the land transfer tax, which is collected by the province. Moreover, if you are buying land in a city like Toronto, you will also be required to pay a municipal land transfer tax in addition to the provincial tax in Ontario, which will ultimately result in you paying twice as much. Let's imagine that if you were to purchase an $800,000 home in Toronto, you would be required to pay both Ontario's Provincial Tax and the City's Municipal Land Transfer Tax, effectively doubling the cost. You will pay a total of $16,950, which includes $8,475 for the provincial portion and an additional $8,475 for the municipal portion. However, if you're a first-time home buyer in Toronto who meets the requirements, you might be entitled to a rebate of up to $8,475, leaving you to pay $8,475 in total land transfer tax. ## No Sales Tax when buying land in Ontario, Canada There is no sales tax applied when someone buys property in Ontario, Canada. However, if you are not a first-time buyer, you will also be required to pay a municipal land transfer tax, which doubles your tax.

Top 10 Largest Real Estate Companies in Canada

Are you interested in learning more about the real estate topics? Here we will be highlighting the **Top 10 Largest Real Estate Companies in Canada**. Grab useful information on the best performers in the dynamic real estate world. Real Estate in Canada --------------------- Real estate has and will continue to be a great investment especially in an immigration friendly country like Canada. The exciting part about this business is that the risk is very low. To invest in real estate, you will need a credible, knowledgeable and skilled agent. There are several real estate agents in Canada but the fear of not falling into the wrong hands can be a hindrance. Canada has in store some of the **largest real estate companies**, and their real estate sector has contributed immensely to the economic growth in Canada. To be a good real estate agent requires you to have good knowledge of the business and also great skills. For these reasons, we have taken enough time to compile a list of the **top real estate companies** in Canada. Top 10 Real Estate Companies in Canada -------------------------------------- Take your time to read through this interesting list to have more knowledge about the top real estate companies in Canada. And yes, these are not in any sequential order. We just picked the most popular and the largest Canadian real estate companies. **1\. Onni Group** ------------------ This well-known real estate company has maintained being on the top list of best real estate companies for over five decades. They are greatly known for their unprecedented condo homes and commercial properties. Their development of residence so far is more than 15000 and they own various properties in different parts of North America, places like Vancouver, [**Ontario cities**](https://getnewhouse.ca/blog/category/ontario-cities/), etc. Onni offices are situated in various parts of Canada, Seattle, Toronto, British Columbia, Los Angeles, and other areas. Their goal is to develop top-notch urban towns in the world coupled with great sustainability and innovative designs. One thing that has made them stand out is their ability to develop principles on green architecture. Also, the materials and equipment used by this company are native and energy-saving respectively. Their great teams are also worth mentioning as they are well trained and skilled in this field. Some of their record-breaking projects are Gilmore Place, Cambie Gardens, Riva, Fortunate at Fort York, Atria west and lots more. 2\. Westcorp Property Management Inc ------------------------------------ This company has been around for over three decades which has made them more conversant with the needs and tastes of their clients. Their services include commercial, residential, retail, office and hospitality real estate. Westcorp Property Management Inc is well known in the commercial sector of real estate in Canada for its exceptional sales. Whitehall Square, Victoria Plaza, The Milner, Downtown Hotel, and Baywood Park are some of their projects in Canada. Over the years this company has been able to enhance its service which has made them become one of the best in Canadian real estate. 3\. Mattamy Homes --------------------- When referring to some of the privately-owned real estate development firms in Canada that make the most profit, Mattamy is one of them. Mattamy owns real estate assets in different parts of the country like the [**Greater Toronto Area**](https://getnewhouse.ca/blog/pre-construction-condo-vs-resale-investment-better-gta-canada/) and Calgary as well as certain parts of the United States of America. Some of Mattamy's projects include 360 condo and Vita on the lake. This business has been able to provide jobs to many and has also offered real estate services to different clients in various areas of Canada. One of their goals is to provide an eco-friendly home, and green building material and to motivate the use of smart technologies. 4\. Westbank Corp ----------------- The company headquarter is located in Vancouver and is one of the top real estate development companies in Canada which also have an international footprint. The company has luxury assets in both commercial and residential skyscrapers. Its reputation in the commercial real estate business, particularly in Calgary, is still being built. Westbank Corp dares to be different from other real estate companies with their exceptional artistry projects. That's one of the things that has grabbed the attention of many towards this real estate company. They are known to be the largest LEED Platinum developer in the world. Some of their projects are Shangri-La, Bank of Italy, Telus Garden and The Butterfly and 188 Keefer St. 5\. Pinnacle International -------------------------- It is one of the leading real estate companies in Canada known for developing luxury commercial, hotels and residential buildings. Over the years the company has been able to create thousands of residences and help to improve different areas in the country. With each of their projects, they have provided great design in terms of architecture and interior as well as deluxe amenities. This has helped them remain one of the best in the real estate market. 33 Bay, Pinnacle Grand Prix, The Prestige and The Sorrento are some of their projects. 6\. Tridel ---------- It is one of the largest and oldest real estate companies in Canada with its headquarter in Toronto. The company was founded by Jack DelZottto in 1934. This company has developed thousands of houses in Canada as well as wonderful communities. The Westerly, Queen & Church and Aqualuna are part of their projects. 7\. Canadian Brookfield ----------------------- This is a company that provides infrastructure solutions, private equity, management, credit and real estate investment which is globally recognized. So, it has landed in our list of top real estate companies in Canada. 8\. The Daniels Corporation --------------------------- This reputable real estate company has more dominance in Thornhill, Toronto, Mississauga and Brampton real estate markets. Their commitment to quality construction, innovative design and sustainability has been their hedge over others in the industry. Kilgour Estates, Artworks Tower and High Park Condos are some projects from them. 9\. Sorbara Group Of Companies ------------------------------ This is a real estate company that also provides property management, investment and construction. Their focus on growth has helped them to penetrate the real estate market. 210 Simcoe and 400 Wellington are some of their previous projects. 10\. Firstservice Corporation ----------------------------- For more than 20 years this real estate company has provided excellent experience and service to their clients. The satisfaction of their client has been their goal and concern which has helped with revenue generation and building reputation. You may also like to discover [10 Steps to Build a Successful Home Renovation Business in Canada ](https://getnewhouse.ca/blog/steps-to-build-successful-home-renovation-business-in-canada) Real Estate Companies in Canada ------------------------------- Whether you want to invest in real estate or planning to get your dream home in Canada, you will come across the company names added above. They have proven to be reputable companies with their various projects and contributions to the real estate market. May it be detached homes, semis, or other [**new constructions**](https://getnewhouse.ca/blog/things-to-know-before-buying-pre-construction-condo-in-gta-canada), these companies have made a strong hold in different Canadian provinces. This collection of **largest real estate companies** can help guide you through the real estate market in Canada. _**What do you think? Any other top real estate companies that we missed to include here? Do share with us.**_