Real Estate News Archive

• Government implements OREA recommendation on retrofit rebates (July 2009)
• The Government of Ontario has adopted an OREA (Ontario Real Estate Association) 2009 pre-budget recommendation, increasing the amount of funding available to Ontario homeowners for home energy retrofit rebates under the Home Energy Savings Program.
  The new improvements will increase rebates by 25 per cent for changes like fixing insulation in ceilings, foundations, basements, and crawl spaces as well as upgrading leaky windows and doors.
  Additional examples of program enhancements include:
• Provincial funding for solar domestic hot water systems is increasing to $1250, up from $500
• Home energy audits will soon be transferrable, allowing new homeowners to take advantage of retrofit energy audit rebates done by the previous owner.

• Amended Energy Audit Bill Passed – Not Yet In Effect
• May 25, 2009 -- Provincial legislation, Bill 150, making home energy audits mandatory for home sellers, unless waived by buyers, has been passed; however, the Bill’s requirements regarding home energy audits are NOT YET IN EFFECT and are not expected to take effect until 2010.

• January 2009 Federal Budget Housing Initiatives
• Homebuyers' Plan
  increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).
• First-Time Home Buyers’ Tax Credit
  a 15% credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.
• Home Renovation Tax Credit
  a 15% credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
  Will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.
• Canadian Government Reduces Bank Rate by 0.5%
• The Bank of Canada, along with the U.S. Federal Reserve, European Central Bank and others, announced an interest rate cut of 50 basis points Wednesday October 8. The Bank of Canada's benchmark lending rate now stands at 2.5 per cent.
• The Ontario government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes
• First-time buyers of resale homes, as well as newly constructed homes, will be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
• GST Reduction Information regarding Home Purchases
• Reduction from 6% to 5% January 1, 2008
• Land Transfer Tax Doubled for City of Toronto
• A second land transfer tax, on top of the provincial land transfer tax, at the following rates: Residential:
• 0.5% of the amount of the purchase price up to and including $55,000
• 1% of the amount of the purchase price between $55,000 and $400,000
• 2% of the amount of the purchase price above $400,000
• First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000).

• Parliament passed new financial services legislation (Bill C-37) at the end of March, which included a measure to lower the required down payment for mortgages. The requirement for mortgage default insurance dropped from 25 per cent to 20 per cent effective April 20th.

• GST to be reduced from 7% to 6%, effective July 1, 2006.

• The new Residential Tenancies Act

• Consumers will receive a $500 rebate when they replace an inefficient central air conditioner with a new ENERGYSTAR® qualified system. There is a $50 rebate for those who have their central air conditioner tuned up by a registered participating contractor, and a $75 rebate on the supply and installation of a programmable thermostat.

• Insurance Coverage Issues Affecting Older Homes