Since April 20, 2007, the required down payment is just 20% (rather than 25%) of the total price of your condo. This amount, which you are required to pay on the price will be deducted from the total price of the condo, with the remaining 80% to be financed by a mortgage.

If you are unable to make a 20% down payment, you will be required to take out mortgage insurance with the Canadian Mortgage and Housing Corporation (CMHC) or GE (Genworth). At that point, it is possible to acquire a unit with as little at 10% or even 5% down. This premium for the mortgage insurance will then be added to the amount of the loan and will be subject to a 9% provincial insurance tax payable at the time you sign the deed of sale at the notary’s office. Your bank broker will deal with the CMHC or GE Genworth to obtain this insurance.

One-time expenses

Notary’s fees

Real property transfer tax (welcome tax) following the pre-tax sale price of your condo

Moving expenses

Connection of public and private services (telephone, cable…)

Monthly expenses Condo fees

Mortgage payments

House insurance payments

Annual expenses

Municipal and school taxes

This tax is calculated as follows, based on highest value between the city evaluation and the total purchase price: The first $50,000 is taxed at 0.5%, the amount between $50,001 and $250,000 is taxed at 1.0%, while amounts exceeding $250,000 are taxed at 1.5%.

For example, for a $205,000 condo, the total amount of the transfer tax would be $1,800 ($50,000 x 0.5% = $250 $205,000-$50,000=$155,000 x 1% = $1,550). This tax must be paid no later than six months after the transaction.

The federal and provincial taxes are shown on your preliminary contract, along with tax rebates applicable to each level of government.

Municipal and school taxes are based on the municipal property evaluation —not on the price of the unit. You must wait for the evaluation, which is done in the months following construction, but it is generally lower than the total price of your unit. As a guide, in 2007, the municipal real estate tax rate in NDG-Côte-des-Neiges was approximately $1.3842 per $100 of the municipal evaluation and $0.33464 per $100 evaluation for the school taxes, representing a 1.71884% tax rate for 2007.

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

For the purposes of the HBTC, an individual eligible for the Disability Tax Credit (DTC) is one for whom an amount can be claimed under the DTC for the year in which an agreement to acquire the home is entered into, or could be claimed if costs for an attendant care or care in a nursing home were not claimed for the [Medical Expense Tax Credit].

Any one can claim the credit. Any unused portion may be transferred to the other spouse or de facto spouse. However, the total amount requested for the year may not exceed $ 750.

Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.

Yes. The individual's interest in the home must be registered in accordance with the applicable land registration system.

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit. You do not have to submit any supporting documents with my income tax return. However, you must ensure that this information is available, should it be requested by the CRA.

No. Although some of the eligibility conditions for the HBTC and the Home Buyer's Plan are similar, they are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyer's Plan.