The home inspection is highly recommended before the purchase of your home is complete. The inspection focuses on the major components of the home and it gives you the opportunity to find out the condition the home is in before you buy it. Inspecting the home can be compared to a report card; the inspector will evaluate and give you a report on his findings. This can range anywhere from 2-4 hours in length and it is highly recommended you attend, It is also encouraged that you follow the home inspector through out his inspection asking him/her any questions you may have about the home.

It is crucial to understand that no home is “perfect”. Depending on the age and size of the home, you are likely to run into common “maintenance” issues which can be defined as normal wear and tear. The requirements pointed out do not mean that the home is defective in any way but that there are minor “touch-ups” that will better improve your homes quality.

Trying to come up with money for a home down payment can at times be tricky. Financial obligations such as rent and current mortgage payments may leave you a little tight when it comes to saving up for that new home purchase but thanks to the Home Buyer’s Plan (HBP) you can withdraw funds from your Registered Retirement Savings Plan (RRSP) to purchase a home. The RRSP is an account that benefits Canadians for their retirement years being tax free of all capital gains, interest income and dividends.

Conditions with using your RRSP’S to help with a down payment are as follows:
 - The maximum that can be withdrawn is $25,000 per individual. (EX: Husband and Wife can each with draw $25,000 equalling a total of $50,000 eligible for withdraw)
-  HBP money must have been in your RRSP account for a minimum of 90 days, before any tax liabilities come into play
- All money withdrawn must be re-paid with in a 15 year period.

To calculate the minimum payment which should be returned each year simply divide the total amount used by 15 years. If the maximum of $25,000 was withdrawn then the yearly payments would be $1,666.67. There are no tax liabilities when using the HBP provided the funds are paid back in time. If the amount is not repaid back in time, then the figure is added to your income for that year which is taxed. It is important to repay back the loan as soon as possible because it will reduce your tax bill and your savings will grow tax-free longer.

“In this world nothing is certain but death and taxes.” – Benjamin Franklin Not a concept we like, but one that we have to live with. In line with Benjamin’s quote HST will take effect on July 1st, 2010 and I know a lot of you are curious as to how this affects you and your plans when it comes to buying and selling Real Estate. HST will combine the Provincial Sales Tax of 8% percent with the Federal Tax of 5% percent, to create a new “harmonized” tax of 13% percent that will now be applicable to real estate services which were at one time subject only to either the Provincial, or Federal Tax. The bright side to all of this is that there is no HST tax payable on the sale of a resale home (residential) however, under HST buyers and sellers will be paying a higher tax on the services associated with the average transaction. Here is a list of how HST affects you from a selling prospective, and from a buying prospective.

As of July 1st, 2010 if you are the seller your home there will be a 13% (HST) tax payable on:
- Real Estate Commission (currently only a 5% GST tax)
- Lawyer Fee (currently only a 5% GST tax)
- Condominium Status Certificate (Total can not exceed $100) If you are a home buyer as of July 1st, 2010 then a tax of 13% (HST) will be payable on: - Home inspection (currently only a 5% GST tax)
- Cost of Movers Hired
- Cost of CMHC premium for “high ratio” mortgages ( traditionally taxable for 8% PST)

Weather you are on the buying or selling side of a resale transaction the service based cost will be on the rise. OREA (Ontario Real Estate Association) has estimated that the HST will add $1,449 in new taxes to an average resale home costing $302,354. For those of you buying new home construction the purchase of the home is subject to HST meaning your costs are considerably higher however, at the same time there are tax rebates being offered. All new home buyers in Ontario will receive a 75% percent rebate on the provincial portion of the new HST tax on the first $400,000 they spend. Unfortunately costs are rising in all areas of the Real Estate transaction but like every change we have occurred in our history it is something we will eventually accept and move on with. - Andrew Costa