TD Canada Trust expands Green Mortgage rebate
By · CommentsFriday, 23 April 2010
Going greener just got better now that TD Canada Trust has expanded its Green Mortgage rebate to include solar panels on homes.
“We’re thrilled to celebrate Earth Day by adding CSA approved solar panels to our list of eligible products for the Green Mortgage rebate. This provides an additional financial incentive to our customers who have made the decision to move towards sustainable energy to power their homes,” said Chris Wisniewski, AVP, Real Estate Secured Lending, TD Canada Trust. “Our recent TD Canada Trust Green Home Poll showed that more than one quarter of Canadians have undergone a green home renovation and the majority (88 per cent) are happy with the results.”
The TD Canada Trust Green Home Poll also showed that 66 per cent of Canadians say that tax credits would entice them to make energy efficient upgrades to their homes.
The Green Mortgage rebate works by giving customers 1 per cent off the posted interest rate on a five-year fixed rate mortgage or on a five-year fixed rate portion of a Green Home Equity Line of Credit (HELOC).As well, TD Canada Trust will rebate up to 1 per cent of the amount of the mortgage or the fixed rate portion of the HELOC when you purchase CSA approved solar panels or make Energy Star qualified purchases.
For a limited time – until June 30, 2010 – TD Canada Trust will also rebate 1.5 per cent of the amount of the mortgage or the fixed rate portion of the HELOC.
Land Transfer Tax
By · CommentsIn general, if you buy land or an interest in land in Ontario, you must pay Ontario’s land transfer tax, whether or not the transfer is registered at one of Ontario’s land registry office.
Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).
Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
In some cases, land transfer tax is based on the fair market value of the land, for example, where:
- a lease can exceed 50 years;
- land is transferred from a corporation to one of its shareholders; or
- land is transferred to a corporation, if shares of the corporation are issued.
In addition to Ontario’s land transfer tax, transfers of land located in the City of Toronto may also be subject to the City of Toronto’s own municipal land transfer tax.
For information on the City of Toronto Municipal Land Transfer Tax:
- visit their website or
- call 416 338-4829
416 392-0719 for teletypewriter
Monday to Friday, 8:30 a.m. to 4:30 p.m.
How much tax do I pay?
If you are a first-time homebuyer, you may be eligible for a refund of all or part of the tax. Learn more
The tax rate has not changed since June 1, 1989.
- 0.5% of the value of consideration for the transfer up to and including $55,000,
- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
- 1.5% of the value of the consideration which exceeds $250,000, and
- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
View a list of previous Land Transfer Tax rates.
On July 1, 2010, Ontario is introducing a federally administered Harmonized Sales Tax (HST) that will apply to most purchases and transactions.
The HST will apply to newly constructed homes, but will not apply to resale homes. Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.
When do I pay the tax?
You must pay Ontario’s land transfer tax at the time the transfer is registered.
If the transfer is not registered, you must submit a Return on the Acquisition of a Beneficial Interest in Land to the Ministry of Revenue along with payment of tax within 30 days.
Exemptions from land transfer tax are limited. The main exemptions include:
- certain transfers from an individual to their family business corporation;
- certain transfers of farmed land between family members;
- certain transfers between spouses;
- certain transfers of a life lease from a non-profit organization or a charity.
A deferral of land transfer tax may be available when land is transferred between affiliated corporations, and notice of the transfer is not registered in a land registry office.
For more information about exemptions and deferral of land transfer tax, refer to our list of land transfer tax bulletins.
Frequently Asked Questions
- What are the requirements to qualify for the first-time homebuyers land transfer tax refund?
- My spouse and I are buying our first home together. I have owned a home before, but sold it before we became spouses. My spouse has never owned a home. Does she qualify for the first-time homebuyers refund?
- How do I apply for the refund of land transfer tax for first-time homebuyers?
- My partner and I are buying a home together. I have owned a home, but he has not. Does he qualify for the first-time homebuyers refund?
- How do I calculate land transfer tax?
- If, for mortgage purposes, a bank requires that a parent also be on legal title to a child’s property, will the child have to pay land transfer tax when the parent later conveys legal title to the child?
Forms
- Affidavit, re. Conveyance to Family Business Corporation – LT101
- Land Transfer Tax Affidavit
- Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes
- Return on the Acquisition of a Beneficial Interest in Land
Publications
Be debt free in 10 easy steps
By · CommentsOwing money can be overwhelming and paying it back can be challenging but you can loosen the grip of financial burden. Check out the best ways to be debt free and put them to the test now.
Updated:
2010-03-25 03:00
By Jessica Padykula
Spend less money
Getting into debt can be surprisingly easy. One too many purchases made on credit, coupled with job loss or financial surprises (i.e.: your roof caving in or car breaking down) can make for a drained bank account and a daunting amount of debt. Trying to get out of debt, however, can be a bigger challenge.
Be debt free faster with wise solutions from Cynthia Kett, a chartered accountant and certified financial planner with advice-only firm Stewart & Kett Financial Advisors Inc.
1. Spend less!
It may seem obvious, but even when in financial dire straits, people sometimes have a sense of entitlement about spending, says Kett. “Get in the mindset of living below your means, rather even that within your means,” she adds.
For example, go grocery shopping with a list, and don’t buy anything that’s not on your list (even if you think you really want it). Or set a weekly budget for groceries and stick to it. Make it a structured affair so you aren’t prone to impulse buys.
2. Do more at home
If you spend $5 a day for an on-the-go breakfast, you’re actually spending $100 per month on your morning meal. You’ll save more if you wake up 30 minutes early, giving yourself time to eat a bowl of cereal, or even taking breakfast from home to the office.
By saving $100 a month on breakfast at a 19.8% rate of return (that’s the standard interest rate on most credit cards), you can put $1,081 towards your debt in one year; all just by skipping that fast food breakfast sandwich!
3. Budget, budget, budget
Budgeting is an important way to be debt free; especially if you don’t want to incur more debt.
First, add up all of your monthly essential spending (rent or mortgage, phone bill, daycare, etc.) Compare that amount with your monthly income and look at what’s left for non-essential items (fast food, manicures, overpriced takeout coffee).
Ask yourself which items you really want to keep in your budget and prioritize your discretionary spending. Ideally, set aside a small amount for non-essential items and use any leftover cash to pay down your debt. “But be reasonable. You shouldn’t put yourself on such a strict financial diet that you don’t stick to it,” Kett says.
4. Don’t borrow long term for short-term spending
If you borrow for something fleeting (i.e. a one-week all-inclusive vacation) and it will take you more than a year to pay it back, don’t do it, warns Kett. “Try and match the repayment term to the life of that purchase.”
5. Earn more
People who get themselves into debt have often bought things they don’t need, Kett explains. If you have unneeded items, why not have a garage sale to sell off some of those things? Even if you don’t get back even half of the money you spent in the first place, you’ll be taking a big step in the right direction for getting free from debt faster.
Depending on your schedule, think about getting a part-time job. Even working an extra 10 hours a week can make a big difference. Perhaps you can start a side business out of your home. You could earn money by doing something you love and charging for it. If you’re a piano player, offer lessons. If you’re a whiz at writing resumes that get noticed, offer your writing services. Every little bit counts.
6. Downsize
If your debt becomes too unmanageable, you may need to think about downsizing your home or car. This could mean something as simple as renting a smaller apartment in a less high-profile area or selling your larger home (that you can no longer maintain) to move into a smaller one.
The same concept applies to cars. Maybe it’s time to trade in your gas guzzler for something that’ll get more mileage for your money.
7. Minimize non-detectable debt
If you must incur debt make it deductable, Kett suggests. Deductable debt includes borrowing to invest (outside RRSPs and other registered plans) borrowing to run a business or any borrowing to generate taxable income.
If you borrow $10,000 to start your own business, the interest you pay on that loan is something you can try to reclaim with income tax and, ideally, get a percentage back. This does not apply to non-deductable debt which includes things like car and vacation loans or any other credit card purchases such as a new flat screen TV or a home furnishing shopping spree.
8. Consolidate loans to negotiate a lower rate
The lower the borrowing rate, the less you pay in interest. You may be able to combine credit card debt and a car loan, for example (and if you have reasonable repayment history).
So, inquire about making one payment every month on everything at a reduced rate. Check with different banks to compare rates to see if this is a good option for you.
9. Pay biggest interest first
To reduce debt, begin by paying down your loans that incur the greatest interest charges. So, if you put your last vacation on a credit card with a high interest rate, pay that down first.
Assuming you charged your $5,000 vacation to your credit now and pay it off over 12 equal monthly payments at 20% interest, you would have to pay $463.17/month to reduce the balance to $0. That means your $5,000 vacation ends up costing you $5,556 because of the interest.
10. A little goes a long way
Saving $25 per week for one year adds up to $1,300 in savings. Increase that to $50 and you can save $2,600 in a year. It may not seem like a lot, but the more you can save, the easier it will be to pull yourself out of debt.
Owing money can be stressful, but managing it is doable if you commit to making some lifestyle changes and shifting your focus from spending to saving. Remember that every last effort you make to be debt free is a step to a happier, more stress-free life.
Find more money-saving tips under Work and Money in our Life and Balance section.
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