---If the buyer of property in the City of Toronto is a qualified first time buyer (and this applies to both builder and resale deals) then such buyer is entitled to a REBATE up to a maximum amount of $3,725.00, being the tax on the value of a home in the amount of $400,000.00. In other words, a first time buyer buying a home for $400,000.00 (or less) is entitled to a full rebate of the City of Toronto Land Transfer Tax. If the Toronto first time buyer’s purchase price is $400,000 (or less), NO Toronto land transfer tax need be paid if a full rebate is available.  If the price exceeds $400,000 and the first time buyer is entitled to ONLY a partial rebate of Toronto Land Transfer Tax (since maximum 1st time buyer rebate is only $3,725.00), then the full Toronto Land Transfer Tax must be paid on closing and a partial refund application is to be made by the buyer after the transaction closes; this same rule applies, (no matter what the price) if there are 2 or more named buyers and only one is a first time buyer.
---No Toronto Land Transfer Tax is payable if the total Toronto Land Transfer Tax is less than $72 (for example, if only a condo parking or locker is being  bought with a purchase price of less than $14,400)
---IN ADDITION TO Toronto Land Transfer Tax (for property purchased in TORONTO), a buyer typically must ALSO pay the added Ontario Land Transfer Tax.  For calculations of such tax, go to the link: Land Transfer Tax: Ontario

Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.

Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.

When you require a mortgage for more than 80% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 2.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 20%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.

As mentioned above, when you put a 20% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.