It's a question many homebuyers need to ask themselves before diving into home ownership. Whether you're buying the property as an investment, in which case you'll need to figure out how much you can rent it out for, or buying the property as a place to live, your first step is to figure out how much house you can afford. Many homebuyers looking for a place to live are likely wondering, when is the right time to enter the market. For anyone who bought a home during Q2 of 2014, they chose a good time to purchase since affordability improved, mostly thanks to dropping mortgage rates, according to the RBC's recent Housing Trends and Affordability Report. But affordability hasn't changed much over the past year, but with rising rates expected by 2015, the situation would worsen then. The RBC report looks at the affordability of different types of homes based on a household's monthly gross income compared to housing costs. If a family wanted to purchase a two-storey home, it would cost them an average of 48 percent of their income. If they wanted a detached bungalow, it would cost them 42.5 percent of their income and if they wanted a condo, it would cost them 27.4 per cent of their income. Of course, affordability differs in each province with buying a home being more difficult in some provinces compared to others. Homebuyers in British Columbia may have a difficult time buying a two-storey home or a detached bungalow with that type of property requiring about 72 per cent and 67 percent, respectively. of a family's household income. While buying a home in the Atlantic region is much more inexpensive with a two-storey home and a detached bungalow having affordability levels of 34.5 percent and 29.7 percent, respectively. But the first step before shopping for a home is determining your gross debt service (GDS) ratio and your total debt service (TDS) ratio. Both of these calculations compare household income to the debt you have. Your GDS should not be greater than 30 to 32 percent, which means the amount of housing costs, which includes your mortgage, property taxes, utilities, and condo fees, should not account for more than one-third of your income before tax. While your TDS should not be more than 37 to 40 percent, but this ratio also includes your housing costs, along with any other debt, such as student loans, credit card debt, a line of credit or a car loan.First-time homebuyers have upped their real estate budgets and homebuyers need to make sure they don't lose their heads during a bidding war. Housing is expensive and if you're buying a newly built home, it's in your best interest to claim an HST rebate from the CRA. Rebate4U can help you receive the most HST housing rebate that you're eligible for. Our priority is to provide our clients with the most professional and quality service in obtaining rebates for their new and renovated homes. We are proud to offer our clients the most personal and attentive service, and we make sure that all of our clients are 100% satisfied.

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Renovations

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How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

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Renovations

26 March 2024

Tips to Ensure Your Renovation is Substantial Enough for the HST Rebate on New Homes

The Harmonized Sales Tax (HST) Rebate on home renovations is a significant financial incentive for homeowners in Ontario, providing a golden opportunity to recoup a portion of the expenses involved in upgrading and enhancing their living spaces. This rebate is offered via Canada Revenue Agency, and it aims to encourage property owners to invest in their homes, not just for personal satisfaction...

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Renting

13 March 2024

How to Claim the HST Rebate on Rental Properties

The HST rebate on rental properties or the New Residential Rental Property Rebate is an excellent opportunity for new condos and homeowners who are not planning on occupying the property to get some money back that was invested in the purchase of the new home. Choosing to rent a property is an effective secondary passive income. When paired with the HST Rebate in Ontario, a rental property can be...

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Renting

26 February 2024

How to Find a Tenant Ahead of Your HST Rental Rebate Application

If you’re renting out a new residential property, the HST Rebate in Ontario is a great opportunity to get back some of the money you’ve invested into purchasing the condo. Available via Canada Revenue Agency, the New Residential Rental Rebate Program can mean thousands of dollars back. To qualify for this rebate program in Ontario, you must meet the criteria set out by Canada Revenue...

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Renovations

10 February 2024

3 Stand-Out Benefits of Applying for HST Rebate on Home Renovations

Home renovations are a great way to revitalize your existing property to transform it into your dream home. Working with the best contractors you can make large-scale upgrade plans that rebuild your home from the ground up. With programs like the New Home HST Rebate in Ontario, the cost of these significant upgrades can be mitigated. By working with the experts at Rebate4U you can assess your...

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Renovations

31 January 2024

Why Turn Repairs into Renovations with the Home Renovation HST Rebate

Whether you’ve recently purchased a new home that needs a lot of work or are ready to upgrade your existing home, renovations and remodels can rack up quite the bill. But for homeowners in Ontario, the HST rebate on home renovations is a viable option that can help you get more return from your investment. Read on for more information!

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HST housing rebate

18 January 2024

Which Part of Your Home Renovations Are Subject to HST in Ontario?

Like with the transaction of any good or service in the province, there is a 13% tax (Harmonized Sales Tax) added to every purchase, including the sale properties. When buying a home, this tax can add up to a substantial amount. In Ontario, the HST Rebate program is offered to residential property buyers as a way to offset the cost of new home purchases.

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Condos

15 December 2023

What to Do When You're Not Ready to Move Into Your New Condo

If you’ve bought a new condo and want more insight into your rebate options, from the HST Rebate on new homes to the New Residential Rental Property Rebate, contact the experts at Rebate4U for more insight and personal guidance.

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Newly built homes

27 November 2023

So You Built a New Home, Now What?

If you’ve recently finished building your new property in the last two years, you may be eligible for money back with the HST rebate in Ontario. The program allows homeowners to recover a portion of their HST spent on construction.

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Rebate Blog

17 October 2023

Signs You'll Benefit from the HST Rebate in Ontario

The HST Rebate in Ontario is a valuable and beneficial program available to homeowners in Ontario. Unfortunately, many new home buyers or even long-time homeowners are unaware of the program’s existence or their eligibility. The new home HST Rebate can be nuanced, but with the guidance of an experienced, trusted, and knowledgeable professional like the team at Rebate4U,...

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