Understanding Your Closing Costs

Mudit Buying

In this article we will try to understand the Closing Costs associated with a Real Estate Transaction, often buyers especially the first time home buyers have questions around how these work and what they can put aside to ensure they are prepared. The approach we will follow here is to break-up the Closing Costs into various components and explain them one-by-one, at the end, we will take an example calculation to give us a fair idea. Let’s start with our first and the biggest component of closing cost: LTT Land Transfer Taxes – This is a provincial tax which government levies whenever …

Top 5 Tips for Sellers

Mudit Selling

In this post we will explore the most important considerations when you are in the market to sell your home and make the next big move. There are many aspects which you need to work on, here I am covering the top five items which should set you on right course for selling in less time and at good price: Price It Right – This is by far the single most important factor when you decide to put your home on market, to arrive at fair market value you need to work along with your Realtor to agree on just the right …

Home Buyers Plan – RRSP Withdrawal Benefit for First Time Home Buyers

Mudit Buying

In this write up we will try to get clarity around one excellent instrument for First Time Home Buyers given by Canada Revenue Agency. And this often gets ignored due to poor planning around first home purchase. If you are a first time home buyer government provides RRSP withdrawal plan (Home Buyers Plan – HBP), this withdrawal can be used to contribute towards your down payment for your home. Main Prerequisite: • You must be a Canadian Resident at the time of withdrawal • The money should have been deposited in the RRSP at least 89 days before withdrawal under …

Mechanics of Renting Vs Buying

Mudit Buying

With this article we will try to be as objective as possible to answer the question by discussing all arguments on buying vs renting, and weigh the options for their merits. There is no straight answer to this, however, based on the below it would make easier for you to consider your personal situation and see what works best for you. Let’s dive straight in.. Good About ‘Renting’ –  • Only one Amount – There are no repairs or maintenance costs, you have only the monthly rent to worry about. • Flexibility of Moving – If your work involves frequent …

Understanding Your Property Taxes

Mudit Buying

When dealing with Real Estate Residential the question which frequently comes across is How are Property Taxes are calculated for a home. In this article I will try to address that.   There are two prime factors which are involved in calculation of property tax, before we go into specifics of each one of these: Phased-In Current Value Assessment (CVA) Total Tax Rate [further broken down into City + Province (Education) + Regional] Property Tax = Phased-In Value x Total Tax Rate Municipal Property Assessment Corporation (MPAC) is a not-for-profit organization that was created by Province of Ontario in 1997. This organization’s job …