Kate Naccarato's blog

Are you on a work permit in Canada and wondering if you can buy property without paying the hefty 25% foreign buyer tax? Good news: if you hold a valid work permit with at least 183 days left, you are exempt from the foreign buyer tax and the current ban on foreign buyers.

The Foreign Buyer Ban and Exemption for Work Permit Holders

Since January 1, 2023, Canada has imposed a ban on foreign buyers purchasing residential property in an effort to cool the housing market. However, work permit holders with at least 183 days of validity remaining are exempt from this ban. This means you can buy...

How a 30-Year Amortization Affects Monthly Payments

One of the most significant aspects of this policy is the ability to spread mortgage payments over 30 years instead of 25. This longer payback period can significantly reduce monthly payments, making it easier for first-time buyers to manage their cash flow.

Let’s use the example of a $1.1 million home:

• Purchase price: $1.1 million
• Down payment (20%): $220,000
• Mortgage amount: $880,000

Assuming a 5% interest rate, here’s how the monthly payments break down with a 25-year vs. 30-year amortization:

• 25-year amortization: ~$5,120/month

...

The Toronto condo market in 2024 is facing significant headwinds. With an oversupply of listings, rising interest rates, and capital gains tax concerns, investors are increasingly under pressure. For buyers, this creates a unique opportunity to enter the market and potentially secure favorable deals. Let’s dive into the current landscape and why now might be the right time to act.

A Surge in Listings and Price Declines

In 2024, active condo listings in the Greater Toronto Area (GTA) surged by 61.5% compared to last year, reflecting an oversupply as new completions hit the market​(

Becoming a homeowner for the first time is an exciting milestone, but it can also be a financial challenge. One of the key strategies available to first-time homebuyers in Ontario is leveraging government programs that allow you to maximize your savings. One such program is the Home Buyers' Plan (HBP), which lets you withdraw funds from your Registered Retirement Savings Plan (RRSP) to put towards your first home. Let’s dive into how you can make the most of this opportunity.

What is the Home Buyers' Plan (HBP)?

The Home Buyers' Plan is a federal program that allows first-time homebuyers...

As Toronto's real estate market continues to boom, Millennials and Gen Z find themselves grappling with the harsh reality of unaffordable homeownership. The city’s soaring property prices have pushed these younger generations to reconsider their financial priorities, leading to a significant shift in spending habits. This blog post explores the effects of these changes on financial stability and offers practical advice on how to approach homeownership in one of Canada’s most expensive cities.

The Challenge of Homeownership in Toronto

Toronto's real estate market is notorious for its high...

As Toronto's real estate market continues to evolve, one concept gaining traction is land leasing. With the federal government recently announcing plans to unlock public lands for affordable housing through long-term leases, it's crucial for potential homebuyers and investors to understand what land leases entail, how they're used in Canada, and whether they might be a viable option for you.

What Is a Land Lease?

A land lease, also known as a ground lease, is an arrangement where you purchase the building or structure on a piece of land but lease the land itself from the owner. This means...

In today's dynamic economic landscape, many potential homebuyers in Toronto are questioning whether now is the right time to invest in real estate. Given the current uncertainties, it's natural to feel cautious about making such a significant financial decision. However, investing in Toronto real estate in 2024 could be a wise choice for those planning to settle down and build a future in this vibrant city. Let's explore why.

Current Economic Climate in Toronto: Toronto, like many major cities, is experiencing a housing crisis, high mortgage rates, and economic fluctuations. While these...

If you're a first-time home buyer, now might be the best time to consider entering the market. Delaying your purchase could make it significantly harder to find and afford a home in the near future. Here's why:

Imminent Housing Shortage

Toronto is on the brink of a severe housing shortage. Despite the current surge in condo listings, this surplus is misleading. New construction starts are trending below 10,000 for 2024, far less than the 30,000 to 40,000 units needed annually to meet demand (CMHC, 2024). By 2027, only 23,900 condos and purpose-built rentals are expected to be completed, a...

Purchasing property is one of the most significant investments you'll make in your lifetime. Understanding the various types of property ownership in Ontario can help you make informed decisions that align with your financial goals and personal circumstances. Here’s a detailed look at the different forms of property ownership available in Ontario as of 2024.

1. Sole Ownership

Sole ownership means that a single individual owns the entire property. This is the simplest form of ownership, where the owner has complete control over the property and is solely responsible for it. Upon the owner’s...

Renting vs. Owning a Home: What's the Difference?

Overview

Choosing whether to rent or buy a home is a significant decision that impacts your financial health, lifestyle, and personal goals. Both options require a regular income to cover payments and associated costs, but they have distinct differences. Renting offers flexibility and fewer responsibilities, while homeownership provides stability and long-term investment opportunities.

Key Points to Consider

1. Financial Situation

   • Renting: Provides predictable monthly expenses, as rent is usually set in the lease agreement. Additional...