Mike  Mifsud

Mike Mifsud

Broker/Owner

HomeLife Nu-Key Realty Ltd., Brokerage*

Mobile:
705-321-0132
Office:
705-733-1222
Toll Free:
1-888-999-4036
Email Me
Mike  Mifsud

Mike Mifsud

Broker/Owner

HomeLife Nu-Key Realty Ltd., Brokerage*

Mobile:
705-321-0132
Office:
705-733-1222
Toll Free:
1-888-999-4036
Email Me

Government Programs for Home Buyers

Government Programs for Home Buyers

 

Government Programs for Home Buyers

A home is usually the single largest investment that most people make in their lives. Achieving your dream can be made easier by taking advantage of various Government Programs for home buyers and property owners. Some of the programs are targeted to first-time buyers, while others apply more generally. Other programs benefit those in the industrial, commercial and multi-unit property market. Your REALTOR can provide information on these programs and help you to determine your eligibility.

  • CMHC Purchase Plus Improvements Program
  • RRSP Home Buyers' Plan
  • 5% Down Payment Program
  • HST New Housing Rebate
  • Land Transfer Tax Rebate Program


CMHC Purchase Plus Improvements

Program

Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property.
This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.

Details

The insured loan will be based on the lower of:

  • The purchase price plus the actual cost of improvements or the “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations/ improvements. The lending value will not exceed the market value of the property after renovations/ improvements.
  • Applicants must have the following:
    1. A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
    2. Cost estimates for renovations/improvements.
    3. Qualifications to obtain a CMHC insured loan through an approved lender.

For more information call CMHC at (416) 221-2642 or www.cmhc.ca.

EXAMPLE:

Purchase Price $100,000
Renovations/improvements costs $25,000
Total cost $125,000
 
Lending Value $125,000
Maximum Mortgage (95%) $118,750
Minimum 5% down payment $6,250


RRSP Home Buyers' Plan

Program

The Home Buyers’ Plan (HBP) is a program under which you can, generally, withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home.
Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.
If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $20,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.

Details

  • Up to $20,000 per person could be withdrawn tax-free from RRSPs to buy or build a principal residence. Couples —including common-law — will be able to withdraw up to $40,000.
  • You have to meet the first-time buyer’s condition. You are not considered a first-time home buyer if you or your spouse owned a home that you occupied as your principal place of residence in the past 5 years. To determine past 5 years, the 4 years preceding the year you make your withdrawal plus the period in the year you make your withdrawal ending 31 days before your withdrawal is the rule adopted.
  • Home buyers withdrawing funds do not have to pay income tax on the amount withdrawn, as long as the funds are repaid into an RRSP in the future.
  • The 15-year repayment period will begin in the second calendar year following the calendar year in which the withdrawal is made. In addition, a qualifying home must generally be acquired before October 1 of the calendar year following the year of withdrawal. For example, those making withdrawals under the plan in 2000 will have until October 1, 2001 to acquire a qualifying home and their first annual repayment will be due by the end of 2002 or the first two months of 2003.
  • A special rule denies a tax deduction for contributions to an RRSP that are withdrawn within 90 days of the RRSP deposit being made. Consequently, to get the normal tax break for a contribution and to use those funds under the plan, the money must be in your RRSP for at least 90 days before a withdrawal is made.

Existing homeowners can use the HBP to purchase a more accessible home or a home for a disabled dependent relative where the individual withdrawing the funds:

  • Qualifies for the disability tax credit (DTC) and is buying a home that is more accessible for the individual or is better suited for the care of the individual.
  • Is related to a disabled individual who qualifies for the DTC and is buying a home for the benefit of the disabled individual that is more accessible for, or better suited for, the care of the disabled individual.
  • Is related to a disabled individual who qualifies for the DTC and is withdrawing an amount for the disabled individual to buy a home that is more accessible for, or better suited for, the care of the disabled individual.

You can participate in the HBP more than once if:

  1. Your HBP balance for your previous participation is zero on January 1st  of the year you want your   new participation in the HBP to occur
  2. You meet the first-time buyer’s condition and all other HBP conditions that apply to your situation.


5% Down Payment Program

With as little as a 5% down payment, from personal or other sources (see below for eligible other sources), all home buyers have access to mortgage insurance enabling then to enter the housing market, as long as they can manage the costs of home ownership.

Details

  • Mortgage insurance for 95% mortgages is available to both first time and repeat home buyers. Homebuyers have the option of using personal sources, such as savings or gifts, or other sources, such as lender incentives, borrowed funds/credit, or sweat equity (the amount of money spent to help construct the home) for the required 5% down payment.
  • Buyers using the program may consume up to 32% of their gross monthly household income for payments on loans for 95% of the lending value of the house where the 5% down payment comes from other sources, will be 2.9% of the mortgage loan. This premium can be added to the mortgage.
  • The maximum amortization period is 25 years.
  • Insurance premiums on loans for 95% of the lending value of the house where the 5% down payment comes from personal sources will be 2.75% of the mortgage loan.
  • Insurance premiums on loans for 95% of the lending value of the house where the 5% down payment comes from other sources will be 2.9% of the mortgage loan. This premium can be added to the mortgage.
  • Borrowers are required to demonstrate, at the time of application, their ability to cover closing costs equal to at least 1.5% of the purchase price.
  • Where the minimum equity requirement is being met by way of a financial gift, the funds must be in possession of the borrower 15 days before making an offer to purchase.

For more information call CMHC at 1-800-668-2642 or access through www.cmhc.ca


HST New Housing Rebate

Program

You may be eligible to claim a rebate for a part of the HST you pay on the purchase price or cost of building your home if:

  • You buy a new or substantially renovated home (including the land or if you lease the land) from a builder.
  • You buy a new mobile home (including a modular home) or a floating home from a builder or vendor.
  • You buy a share of capital stock of a co-operative housing corporation.
  • You construct or substantially renovate your own home, or carry out a major addition (or hire another person to do so).
  • Your home is destroyed in a fire and is subsequently rebuilt.

Details

  • Resale homes are exempt from the 6% HST.
  • New homes are subject to the 6% HST. New home buyers can apply for a 36% rebate of the 6% HST applicable to the purchase price to a maximum of $7,560 for homes costing $350,000 or less before HST.
  • For new homes priced between $350,000 and $450,000 before HST, the HST rebate would be reduced proportionately.
  • New homes priced $450,000 before HST or higher would not receive a rebate.

NOTE:

In the GTA, most builders include the HST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net HST cost.


Land Transfer Tax (LTT) Rebate Program

Program

First-time home buyers who purchase a newly constructed home will receive a rebate of the Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum LTT rebate is $2,000.

Details

  • The 1996 Ontario Budget announced a special one-year provision to the LTT that was
    renewed every year and is now a permanent program.
  • First time buyers who purchase a newly constructed home will receive a rebate of the LTT. All other buyers will continue to pay the full applicable tax.
  • The maximum rebate is $2000. If an individual owns less than 100% interest in the newly built home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.
  • A rebate of $2,000 is equivalent to the LTT payable on a purchase price of $227,500 (net of HST).
  • Only individuals who are at least 18 years of age, have not previously owned an interest in a home anywhere qualify for the rebate. Also applies to their spouse.
  • Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the LTT do not qualify.
  • A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The tax is a percentage of the value of the property based on a graduated scale:
  • 0.5% on amounts up to and including $55,000
  • +1.0% on the amount exceeding $55,000 up to and including $250,000
  • +1.5% on amounts above $250,000 up to and including $400,000 for residential /
        +1.5% on the amount in excess of $250,000 for business properties
  • +2.0% of the amount in excess of $400,000 [residential only]

For more information call the Ontario Finance Ministry at 1-800-263-7965.

These four portions added up together total the LTT payable. A simple formula is as follows:
**Purchase Price Calculation of LTT
$0 to $55,000 0.5% x purchase price
$55,001 to $250,000 (1% x purchase price) minus 275
$250,001 to $400,000 (residential)
$250,001 plus (business)
(1.5% x purchase price) minus 1525
$400,001 plus (residential only) (0.2% x purchase price) minus 3525
**If the purchase price falls within this range, then apply the appropriate formula to the purchase price. For example on a $200,000 property, the LTT calculation would be [(1% x $200,000) minus 275 = $1725].

Have Questions?

reCAPTCHA


What is the value that I offer?  

 My personal attention and 36 years of Experience!

 

As the Broker of Record and Owner of Homelife Nu-Key Realty I can assure you that as your Realtor, you will receive the highest level of service and expertise possible.  I will put my 36 years of experience to work for you and commit my time and knowledge to ensure you achieve your real estate goals. 

I learned selling real estate through good old hard work and perseverance. My success is attributed to personal service and focusing on my clients needs. I earn my client's trust by showing them I truly care about them by listening to them. Whether buying or selling or both, my clients and I are a team and it's important to work together to achieve success.  I follow through by being responsive and there when they need me.  

In 1992, I advanced my real estate career successfully completing the educational requirements to become a Real estate Broker and established my first real estate brokerage and in 1993 I moved to Barrie to provide services for a large Barrie builder and was responsible for selling more than one thousand homes. 

Now with 36 years under my belt, and CEO and Broker of Record of my HomeLife Brokerage, I'm still hands on and out there doing what I love. " I love helping people buy and sell real estate. I can’t imagine a better job!  Everyday I look forward to working with people and helping them achieve their real estate goals” 
  

Over the years I have gained valuable knowledge and experience as a Realtor. “True knowledge comes from learning through years of experience” and I have learned so much and I put that knowledge and experience to work every day for my clients. "Buying or selling a home is likely one of the largest financial investments you will have and it’s important to entrust someone that has the knowledge and experience that can guide you through the entire process."


My Guiding Principal has always been to live by the Golden Rule, and that is to "Treat Others As I Would Want To Be Treated" 

I look forward to the opportunity to help you with your real estate needs.


Any time you want information on the market or are ready to buy or sell a property –contact me. There’s no obligation. 
Please feel free to Call or Text me at 705-321-0132 or email me at  mike@brokermike.ca

 

 
 
 
 

Top 1% Agent in Barrie! Why choose me as the REALTOR to work with? 

Because I'm the Boss!  I own the Brokerage and I don't report to anyone!
Did you know that most agents must work under the direct supervision of a Broker of Record?   Did you also know that many buyers use the first agent that they contact and never ask them how long they've been licensed in the real estate business?   That's crazy!    If you are buying or selling one of your biggest financial investments would it not be wise to entrust someone who is one of the best in their field? Someone with many years of knowledge and experience?I'm the Broker of Record and owner of the brokerage!  I have more than 30 years of direct Real Estate experience,  and I know this business!  I have sold more than 1000 homes in the Barrie area.  I do more than just sell homes, I am your trusted  advisor, I am your representative acting for your best interest,  I am your local expert that  will guide you through the entire process of buying or selling your home. My job is more than just finding you the right home!  My job is to ensure that it's in a good location, point out positive features as well as areas of concern.  I will negotiate the best deal possible for the home and help you with getting the best mortgage rate, choosing  the right  lawyer, choosing the right home inspector and much much more! Why would your trust anyone else with what is most likely your biggest immit my time and experience until we find you the right property or sell the one you're in.  Go ahead call me and see how quick I get back to you!

I am so confident that your making the right choice choosing me as your REALTOR, that I will Guarantee it in writing, that if you are not happy with my services, you can cancel a



Specialty: Residential Homes; Condos, Business sales

Experience: 37 years

Awards: #1 in Office Production

Area Covered: Barrie and area Barrie, Innisfil, Midhurst, Springwater, Essa, Oro-Medonte, Orillia,Richmond Hill, Newmarket, Markham, Bradford, Vaughn, GTA