Toronto Condo and Real Estate Blog

Property owners to get a fairer assessment appeal system

A fairer property tax appeal system is expected with changes announced by the provincial government. The changes mean the onus of proof on property assessment appeals is reversed so that, when a property owner appeals an assessment, the Municipal Property Assessment Corporation (MPAC) would be required to prove the accuracy of the new assessment.

The government move follows the Ombudsman’s recommendation that this measure would enhance the fairness of the appeal process. The legislation would place the onus on MPAC to prove the accuracy of property assessments that are appealed to the Assessment Review Board (ARB).

The government also intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget — changes designed to create a more streamlined and transparent appeal system. A key proposed change would make the Request for Reconsideration (RFR) program the first stage of the appeal process for property owners. The RFR, which is free of charge, encourages the sharing of information between MPAC and the property owner, and provides taxpayers with the opportunity to resolve their concerns directly with MPAC in an informal setting.

The Ministry of Finance is also working with MPAC and the ARB to disclose valuation information to taxpayers about their property assessment in a timely way. This will help property owners review the accuracy of their assessment, decide whether to engage in the RFR process, and prepare for their hearing if they decide to appeal to the ARB.

These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date.

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Contact the Jeffrey Team for more information - 416-388-1960

Pub-laden area reminds many of U.K.’s capital city

Only a few great suites remain! Take advantage of a broker’s open house this weekend only - make an appointment with us to go to the sales centre. Prices still start as low as the $180s up to the $550s with layouts from one-bedroom up to two-bedrooms-plus-den. With occupancy scheduled for this October, the building is almost complete!

People looking for a new London home better move fast - London on the Esplanade is almost sold out.

“I’ve done this for over 20 years,” says Phyllis Shapiro, the project’s sales manager. “I always tell people to buy location. There is so much around here that you literally don’t need your car.”

The two buildings and podium will sit right behind the Hummingbird Centre, south of Front Street and east of Yonge.

“A lot of people have commented over the years the area reminded them, especially with all the pubs, of London,” Shapiro says. “People who live in this area, or who wanted to live in this area didn’t have a lot of options before.”

Shapiro is moving in herself, something she has never done with any project she’s worked on in the past two decades. She says the first incentive was the location, but second was the layout.

“The architect did a very good job with his floorplan. He’s really utilized his space well,” she says.

Burka Varacalli Architects, who were involved with projects such as the Bayview Mansions, the St. James Cathedral and 801 Bay St., have designed 12 different “London flat” suites and nine different lofts.

Floor-to-ceiling windows, pre-finished engineered wood floors and mirrored sliding doors in all bedroom closets are among some of the suite features.

“Club London” will have spa rooms, a fitness centre, a London-styled pub and cinema among other amenities.

As for the external look of the building, Shapiro says, “The large tower will suit the financial district and incorporate a brick inlay to keep with the area. People really like that feel.”

Shapiro says another sales representative has bought on this project as well.

“I live up north so this will be a big change for me but I really like this block,” she says. “Other people are moving from the north. They want to get back into the night life — their kids have grown up.”

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Contact the Jeffrey Team for more information - 416-388-1960

By Peter Vukanovich

For most Canadians, homeownership is as much about financial well being as it is about comfort, security and a sense of pride.

That’s why Genworth Financial Canada believes that consumers need to be well informed before they make one of the most important financial decisions of their lives.

Building equity in your own home, while enjoying the experience of being a homeowner, is a priority for millions of Canadians. And now there are more options available to help you realize the dream of homeownership.

Best to start by understanding your current financial situation. Assess your own credit conditions and speak to a mortgage professional about obtaining a pre-approved mortgage.

Check your credit rating, available from such agencies as Equifax Canada Inc. and TransUnion Canada. Consider your total debt obligations and weigh your ability to manage mortgage payments.  You should budget to spend no more than 32% of your pre-tax income on housing costs (mortgage payments, property tax & heating costs) and use no more than 40% of your income to service all debts including your mortgage.

New mortgage products, such as extended amortizations, can help you make the transition to homeownership. In addition to the traditional 25-year mortgage amortization (the time you’ll take to pay the loan back in full, with interest), there are now 30-, 35- and 40-year amortizations available.

Extended amortization products can help buyers with good credit become homeowners sooner. But they’re not without some drawbacks.

A home purchased with a 40-year amortization mortgage will carry significantly higher interest costs over the life of the mortgage than one purchased with a 25-year mortgage, assuming you use the entire amortization period to repay the loan. For example a $250,000 mortgage at 6.5% with monthly payments paid over 40-years will cost $445,177 in interest. If that amortization were 25-years, the consumer would pay $252,368 in interest, a savings of $192,809.

Extended amortization products should be viewed as a tool to help you become a homeowner sooner. However, there are options available for paying down mortgage debt more quickly than the original amortization period chosen.  For example, mortgage loans in Canada generally end after five years, after which time you have the option of choosing a shorter amortization period.  By doing so, you’d save interest charges and eliminate your mortgage sooner. Similarly, the average Canadian moves every seven years, which ends their mortgage and provides an opportunity to choose a shorter amortization period.

Also consider that mortgages in Canada offer pre-payment allowances of between 15-20% of the original mortgaged amount, usually on an annual basis. Some consumers use their income tax refund from RRSP contributions for this purpose.

Accelerated payment options are another great tool to reduce mortgage debt. For example, a 40-year amortization period can be cut to about 32 years by moving from a monthly to accelerated bi-weekly payment schedule. If you make additional payments or double-up your mortgage payment through-out the year, you can also significantly reduce the number of years to pay off your mortgage.

Most Canadians (78% according to a recent survey) are interested in paying their mortgage off as quickly as possible, and using the above strategies will allow you to do just that.

So, if a 40-year amortization is more expensive in the long-term, why choose it at all? Besides lower mortgage payments, there are other reasons why these products may make sense.

For example, you may purchase a ‘fixer upper’ and keep the extra cash flow available for renovation costs. Once the home is renovated, you can make accelerated payments or choose a 25-year amortization when renewing your mortgage term.

Similarly, for young professionals who still have student loans to consider, a 40-year amortization may make initial sense. It will allow them to pay down those loans and later pay their mortgage more aggressively after their income level rises and they’re free of that debt.

Extended amortization products will continue to offer informed consumers the flexibility they need to begin to realize their dream of homeownership. Genworth has launched a new website which provides consumers a wide range of information about the homebuying experience. Visit www.homeownership.ca to learn more.

Peter Vukanovich, CA, is President of Genworth Financial Canada and is Past President (2004-05) of the Canadian Association of Accredited Mortgage Professionals.

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Contact the Jeffrey Team for more information - 416-388-1960