{"id":10098,"date":"2021-04-19T08:43:20","date_gmt":"2021-04-19T08:43:20","guid":{"rendered":"https:\/\/diamondlaw.ca\/?p=10098"},"modified":"2022-01-04T17:07:50","modified_gmt":"2022-01-04T17:07:50","slug":"what-i-need-to-know-about-a-new-home-purchase","status":"publish","type":"post","link":"https:\/\/diamondlaw.ca\/real-estate\/what-i-need-to-know-about-a-new-home-purchase\/","title":{"rendered":"What I Need to Know About a New Home Purchase"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/diamondlaw.ca\/real-estate\/steps-for-your-purchase-transaction\/\">Buying a new home<\/a> is something many of us have to do at some point in our lives. It&#8217;s also one of the most expensive purchases we&#8217;ll ever make. The procedure can be complicated for <a href=\"https:\/\/diamondlaw.ca\/real-estate\/home-buyers-guide\/\">first-time buyers<\/a>, and any mistakes can delay this already-lengthy process.\u00a0<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/diamondlaw.ca\/importance-of-getting-a-home-inspection\/\">Home inspections<\/a> and <\/span><a href=\"https:\/\/diamondlaw.ca\/real-estate\/tips-to-help-you-qualify-for-a-home-mortgage-loan\/\"><span style=\"font-weight: 400;\">mortgage applications<\/span><\/a><span style=\"font-weight: 400;\"> are just the beginning, and there are many steps to take when the paperwork is done. We understand how stressful and confusing purchasing a house can be, so don&#8217;t be afraid to contact us. We can help you understand the process and quickly get you settled into your new home.<\/span><\/p>\n<h2 dir=\"ltr\"><b>New Home Purchasing Costs<\/b><\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">One of the key expenses is <a href=\"https:\/\/diamondlaw.ca\/overview-real-estate-closing-costs\/\">closing costs<\/a>, which range from 1.5% to 4% of the house&#8217;s value in Toronto and surrounding areas. These are fees paid separately from the standard mortgage payments. Other costs to be aware of include:<\/span><\/p>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal costs: Average <a href=\"https:\/\/diamondlaw.ca\/real-estate\/mississauga-real-estate-lawyers\/\">Real estate lawyer<\/a> legal fees range from $1,000 to $1,500.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Land registration: A land transfer tax must be paid to the Ontario government when receiving property ownership. This starts at 0.5% for a $55,000 home and can increase up to 2.5% for a $2 million home.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home insurance: The average is $1,250 per year, or around $104 per month.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjustment costs: Any bills or taxes prepaid by the seller need to be paid back after the closing date. This usually ranges from $300 to $500.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New build GST\/HST: These taxes apply to newly built houses, with the Goods and Services Tax (GST) being 5% of the value and the Harmonized Sales Tax (HST) being 13%.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home appraisal: A professional appraiser costs between $350 and $700.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home inspection: This fee ranges from $300 to $500.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Moving costs: Generally, a one-bedroom costs $400 to move, while a two-bedroom costs $600. Larger homes can start from $1,500.<\/span><\/li>\n<\/ul>\n<h2 dir=\"ltr\"><b>Tax Credits for New Homebuyers<\/b><\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Your local government can provide incentives and fees, which you can learn about <\/span><a href=\"https:\/\/diamondlaw.ca\/real-estate\/taxes-and-fees-to-expect-when-buying-real-estate-in-toronto\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">. One of the key advantages of being a homeowner is potential tax credits and rebates. These include:<\/span><\/p>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First-time homebuyers&#8217; tax credit: If this is your first home purchase in four years, you can receive $5,000.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Homebuyers&#8217; plan: This lets you withdraw up to $35,000 of your pension for a home purchase.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">GST\/HST new housing rebate: Paying the HST on an owner-built home can pay up to $24,000.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Moving expenses: Deductions on moving costs are available.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Homebuyers&#8217; tax credit for people with disabilities: You can apply for this credit to make a home more suitable for a disabled person.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home accessibility tax credit: $10,000 per year is available with supporting documents like invoices and receipts.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Medical expenses tax credit: Part of your medical fees from the past 12 months can be claimed.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rental income deductions: You can <a href=\"https:\/\/diamondlaw.ca\/ocf-forms\/ocf-6-expenses-claim-form\/\">claim on any reasonable current and capital expenses<\/a>.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deductions from moving for work or school: Available if you&#8217;ve moved at least 40km to work or study.<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Homeowner tax credits when you work from home: You can receive $2 per day if your primary workspace is in your home.<\/span><\/li>\n<\/ul>\n<h2 dir=\"ltr\"><b>Getting Professional Help For A New Home Purchase<\/b><\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The home-purchasing process can still be daunting even after the paperwork is done. There are many points to consider, such as:<\/span><\/p>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Moving process<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/diamondlaw.ca\/importance-of-getting-a-home-inspection\/\"><span style=\"font-weight: 400;\">Home inspection<\/span><\/a><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home safety and security<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home planning and designing<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home repair and renovation<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home maintenance<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The best way to ensure the process goes smoothly is to hire professional assistance. There are many <\/span><a href=\"https:\/\/diamondlaw.ca\/real-estate\/home-buyers-guide\/\"><span style=\"font-weight: 400;\">legal professionals<\/span><\/a><span style=\"font-weight: 400;\"> who can help, including:<\/span><\/p>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Realtor<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real estate lawyer<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Home inspector<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insurance broker<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appraiser<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Land surveyor<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lender<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mortgage broker<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Builder or contractor<\/span><\/li>\n<\/ul>\n<div dir=\"ltr\" align=\"left\">\n<div dir=\"ltr\" align=\"left\">\n<div dir=\"ltr\" align=\"left\">\n<table>\n<colgroup>\n<col width=\"208\" \/>\n<col width=\"356\" \/><\/colgroup>\n<tbody>\n<tr>\n<td colspan=\"2\">\n<p dir=\"ltr\" style=\"text-align: center;\"><b>More Information on Purchasing a New Home<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Factors to Consider When Choosing a Home<\/span><\/p>\n<\/td>\n<td>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Defects<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Location<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Age<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Size<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Types of Homeownership<\/span><\/p>\n<\/td>\n<td>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sole Ownership: Home belongs to one individual. This is a great choice for first-time buyers as you have control over all decisions.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Joint Tenancy: At least two owners share equal property rights.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tenancy in Common: Joint ownership with differing home shares.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tenants by the Entirety: Home is owned by spouses.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Owning Partnership (LLC): The property is classified as commercial real estate.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Owning Corporation: Property is owned by a corporation.<\/span><\/li>\n<\/ul>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Owning Trust: Trustor directs a trustee to manage the property.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Closing Costs When Buying a Home<\/span><\/p>\n<\/td>\n<td>\n<ul>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Property inspection<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Deposit<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Land transfer tax<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Title insurance<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Provincial tax<\/span><\/li>\n<li dir=\"ltr\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal fees<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<h3 dir=\"ltr\"><\/h3>\n<h3 dir=\"ltr\"><b>Need help navigating the legalities of purchasing a new home? Consult with a real estate lawyer from Diamond &amp; Diamond today.<\/b><\/h3>\n<p dir=\"ltr\">\t\n\t\t\t<section class=\"h-protip-sec\">\n\t\t\t\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t<div class=\"col-md-2\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"63\" height=\"64\" src=\"https:\/\/diamondlaw.ca\/wp-content\/uploads\/sites\/8\/2021\/02\/Screenshot_1-1.png\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"pro tip icon\" sizes=\"auto, (max-width: 34.9rem) calc(100vw - 2rem), (max-width: 53rem) calc(8 * (100vw \/ 12)), (min-width: 53rem) calc(6 * (100vw \/ 12)), 100vw\" \/>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"col-md-10\">\n\t\t\t\t\t\t\t<h3>Pro Tip: <\/h3>\n\t\t\t\t\t\t\t<p><p><b><i>\u201cWhen you start looking for a new home, you need to know for sure how much you can afford to spend. While your mortgage payment and your down payment may be among your biggest expenses, there are many other costs associated with purchasing a home that every homebuyer needs to consider.\u201d<\/i><\/b><\/p>\n<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/section>\n<h2 dir=\"ltr\"><b><\/b><\/h2>\n<h2><strong>Real Estate Lawyers in Toronto<\/strong><\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">One of the most important people to consult when buying a home is a real estate lawyer. They perform many crucial tasks for you, like title searches and preparing all legal documents.\u00a0<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Toronto real estate lawyers can help you at any point in the home-purchase process. Read <\/span><a href=\"https:\/\/diamondlaw.ca\/real-estate\/questions-to-ask-before-hiring-a-real-estate-lawyer\/\"><span style=\"font-weight: 400;\">this<\/span><\/a><span style=\"font-weight: 400;\"> article to discover the many benefits of working with one.\u00a0<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">For expert real estate assistance, contact Diamond &amp; Diamond at 1-888-INFOLAW or 1-888-463-6529.<\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<h2 dir=\"ltr\"><b>What I Need to Know About a New Home Purchase FAQs<\/b><\/h2>\n<p>[\/vc_column_text][vc_toggle title=&#8221;What is the GST\/HST New Housing Rebate?&#8221; style=&#8221;round&#8221; color=&#8221;blue&#8221; el_id=&#8221;1610080524707-d830ee54-dfbd&#8221;]<\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The GST\/HST new housing rebate is a rebate paid upon purchasing a new owner-built home.<\/span><\/p>\n<p>[\/vc_toggle][vc_toggle title=&#8221;What Upfront Costs are There When Buying a Home?&#8221; style=&#8221;round&#8221; color=&#8221;blue&#8221; el_id=&#8221;1610080546599-e1ba23d2-5ca0&#8243;]<\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">When purchasing a home, upfront costs may range from 1.5 percent to 4 percent of the house\u2019s value.<\/span><\/p>\n<p>[\/vc_toggle][vc_toggle title=&#8221;Is Home Insurance Mandatory for Canadian Home Loans?&#8221; style=&#8221;round&#8221; color=&#8221;blue&#8221; el_id=&#8221;1610080574612-96286418-5cfa&#8221;]<\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Yes, you need home insurance in order to qualify for a mortgage in Canada.<\/span><\/p>\n<p>[\/vc_toggle][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Buying a new home is something many of us have to do at some point in our lives. It&#8217;s also one of the most expensive purchases we&#8217;ll ever make. The procedure can be complicated for first-time buyers, and any mistakes can delay this already-lengthy process.\u00a0 Home inspections and mortgage applications are just the beginning,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":11866,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"ngg_post_thumbnail":0,"footnotes":""},"categories":[812],"tags":[540],"class_list":["post-10098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-needs","tag-real-estate","entry"],"_links":{"self":[{"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/posts\/10098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/comments?post=10098"}],"version-history":[{"count":0,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/posts\/10098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/media\/11866"}],"wp:attachment":[{"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/media?parent=10098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/categories?post=10098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diamondlaw.ca\/wp-json\/wp\/v2\/tags?post=10098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}