As recent month to month inflation rates for Canada continue to remain above 5%, with some months as high as 8% (in the year of 2022), the Bank of Canada continues to warn Canadians of further interest rate hikes even after the multiple interest rate increases we have experienced this year. If you are in the process of obtaining a new mortgage, whether you are refinancing or purchasing a property, higher interest rates mean increased monthly mortgage payments and decreased affordability. However, what happens if you have an existing mortgage and the Bank of Canada and prime rates increase?
For those who have already gone through the process of purchasing a new construction home and purchasing a resale home, you know that the purchasing experience is surely not the same. It can be especially daunting as more homebuyers are dealing directly with a builder’s (seller’s) representative when purchasing compared to resale transactions which more than not have a realtor representing and guiding you throughout the process.
To combat the sharp rise in real estate prices, the Canadian government has proposed new GST/HST rules in relation to Assignments (effective May 7, 2022) and Income Tax rules in relation to flipping real estate in general (effective January 1, 2023).
When you earn less income, you wish that you made more. When you earn more, you wish that you can keep more. Ontario, Canada is hands down one of the best places to live and raise a family but it’s also home to one of the highest marginal income tax rates in the world. The ability of Ontario real estate salespeople and brokers to form Personal Real Estate Corporation (PREC) under the Trust in Real Estate Services Act, 2020 (“TRESA”), as of October 1, 2020, may help those that earn more.
Buying your first home can be very stressful. In order to protect your legal interests, it is highly recommended to contact a lawyer as early in the transaction as possible. If you need answers immediately, we have compiled and answered the top 5 questions that we get asked by first time home buyers in our legal practice.