The tax benefits of home ownership

Now that February is over, all those tax-related documents have likely started arriving in your mailbox. Whether you’re socking them away to use at a later date, or hoping to put them to work this weekend, there are a number of housing-related deductions and credits you should keep in mind as you go through the tax filing process. Pay particular attention if:

You’re a first-time homebuyer

Anyone who has purchased a home for the first time can claim a non-refundable tax credit of up to $750.

You’ve made your home more accessible

If you have mobility impairments and spent money making your home more accessible in the last year, you’re eligible to claim those renovation expenses under the medical expenses deductions.

You bought a new house

If you bought a new build for under $450,000, you may be eligible to claim the GST/HST new housing rebate—provided it’s your principal residence.

You own a rental property

The downside to owning a rental property is that you have to claim your rental income as, well, income. The upside is that you can claim many expenses that go into maintaining a rental property—such as advertising costs, insurance and mortgage interest.

You work from home

Whether you are self-employed, or a commissioned or professional employee who works from home, you can claim a portion of your home office expenses—such as heating, home insurance, electricity and mortgage insurance.

While your accountant or bookkeeper is likely the best person to ask about other household deductions, I can definitely help with any mortgage-related queries you might have! So whether you’re looking to renew, refinance or simply want to chat, don’t hesitate to drop me a line!

Homebuyers’ Tax Credit 101

If you bought a home in 2015, you may or may not be aware that you’re eligible for a Federal tax refund this upcoming tax season. If you’d like to learn more about the First Time Homebuyers’ Tax Credit—including how to qualify—the Canada Revenue Agency put together this informative video  with all you need to know!

If you have additional questions about the First Time Homebuyers’ Tax Credit—or about your mortgage—please don’t hesitate to reach out to me.

You can call our office at 905 372 7367

Having trouble affording your first home? You're not alone.

If you’re an aspiring first-time buyer getting frustrated by how hot—and expensive—your market is, you’re not alone. Many young people are in your exact position. In fact, this professor at UBC actually did research on the plight first-time buyers face, and determined that they’re by far worse off than their parents were.

That being said, there are ways to land a new home if you really want it. You may just have to employ creative measures, such as:

Buy with friends

You’d obviously have to be very careful which friends you choose—and make sure you employ the help of a good real estate lawyer when devising the contract—but this strategy has worked for some people. In one case I’m familiar with, a group of three roommates decided to just buy the home they were living in. It came up for sale and, after doing the math, they realized today’s low interest rates (coupled with a good down payment) made their mortgage payments cheaper than their rent payments. In another situation, a married couple and their friend bought a home together with a basement apartment. The bachelor lived downstairs and the couple—and eventually their kids—took the upstairs.

Be resilient

In a hot market, it’s easy to get discouraged—but it’s important not to let the endless bidding wars get you down. One buyer I know looked at every house that came up in her price range—regardless of what the photos in the real estate listing looked like. She eventually came across a gem—a recently-renovated home with a basement apartment in a decent neighbourhood. Not a single soul put an offer on the place because the agent hadn’t updated the listing photos—and the ones posted were pre-reno (and quite scary).

When necessary, settle.

Sometimes you just can’t get what you want. Sure, a three-bedroom three-bath detached home would be ideal, but sometimes a smaller townhouse is all you can afford (and find). If you can find a place that will make do for the next five years (that doesn’t overextend you), you may have to settle—and buy your dream home after you’ve built up some equity.

If you or anyone you know is trying to break into the housing market, please don’t hesitate to send them my way. Referrals are always appreciated!