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Aluminum Wiring & Your Home buying a house

Aluminum Wiring & Your Home

𝗔𝗹𝘂𝗺𝗶𝗻𝘂𝗺 𝗪𝗶𝗿𝗶𝗻𝗴 & 𝗬𝗼𝘂𝗿 𝗛𝗼𝗺𝗲 🏡 
If your home is built between 𝟭𝟵𝟲𝟬 & 𝟭𝟵𝟳𝟲
there is a chance that it contains 𝘢𝘭𝘶𝘮𝘪𝘯𝘶𝘮 𝘸𝘪𝘳𝘪𝘯𝘨.
What it means – how to check – what to do
𝘙𝘦𝘢𝘥 𝘵𝘩𝘪𝘴  👉🏻 👉🏼 👉🏽 

Land Titles Transfer Tax for Winnipeg Home Buyers buying a house

Land Titles Transfer Tax for Winnipeg Home Buyers

I wrote about Winnipeg Land Titles office, and the reason why there is usually a 3 to 4 week delay between the date-of-possession for a home, and the date-of-receiving money for the sale.  A while back,  I sat down with a nice couple who were writing an offer on a house, and the conversation turned to the ‘Closing Costs’  (which includes the land titles transfer tax) of the purchase.  The conversation went something like this:.

Mr. Buyer: So aside from the lawyers fees (which we had already discussed), what other costs will I need to budget for?

Bo: Well, there will be home insurance.  Good news is that you won’t have to pay any property taxes, because we’re doing this in January.  But of course you have to budget for the Land Titles Transfer Tax.

Mr Buyer:  A tax?  Just for changing the title of the house?  How much is THAT going to cost?

I did a quick mental calculation, and gave him the cost, and then watched as his face went thru the classical 5 stages of grief, from Denial (“This Can’t Be Right), to Anger ((F*#@ing Govm’t), Bargaining (Isn’t there a way around this), Depression (Oh, Man…..that’s alot of dough) to finally  Acceptance (Well,  It IS a nice house and there is NO WAY around it, short of leaving our province).  So just how much is the government raking in with this tax?

Land Titles Transfer Tax: Financial ‘kick in the ‘nads’ to buyers

Land Titles Transfer Tax calculation:

While Manitoba is not the only province to impose this tax, it is by far the most aggressive and onerous.  Thru a set of formulas, we arrive at a figure of $1720 for a $200,000-house or condo.  With Winnipeg’s average house price hovering around the $230,000 mark, we can see that our Provincial Government is collecting approx. $2000 in taxes, EVERY TIME the title of a house is transferred.  But wait, you say….  didn’t Bo just tell us that it costs $1720 for a $200K home?

Yes, but I haven’t told you the worst part:  ABOVE the $200K price, this tax adds an additional 2% on EVERY DOLLAR.

So, a $300,000 home will cost you $3720   (calculated by adding the $1720 base, plus 2% on the additional $100,000 price = $3720)

While the Land Titles Transfer Tax is especially difficult for young, first-time home buyers, even people ‘with money’ find an added tax of 4 grand or more to be a financial ‘hit’.  For that reason, Winnipeg REALTORS® have been lobbying to change this regressive tax.  Let’s bring it more in line with other western provinces.  Ideally, inline with Alberta, where a $200K home costs $75 in Land Titles Transfer Tax and a $300K home costs $95.  But heck, let’s not even look at those numbers, lets instead compare to my wife’s home province of Saska-Bush ….  where it costs just $1200 to transfer the title of a $400,000 home.

Manitoba’s fee for transferring the Title of a $400,000 home:  $5,720

F.A.Q. About Land Titles Transfer Tax

What is Land Titles Transfer Tax in Winnipeg?

This is a one-time tax paid each time a property is ‘transferred’ between owners. It is calculated based on the value of the property. Most provinces in Canada do have a Land Titles Transfer Tax, but each jurisdiction has their own way of calculating the tax.

Who pays the Land Titles Transfer Tax?  The Buyer or the Seller?

In Winnipeg, the LTTT (Land Titles Tax) is paid by the buyer. It is paid EACH time you buy a property, house, condo or vacant land. If you sell the property at a later time, there is NO refund or credit. It is quite literally a tax grab by the provincial and civic governments.

Do I have to pay the Land Titles Transfer Tax on a Condo?

Yes, any type of residential property, including houses, condos and vacant land are subject to this tax.

How do I calculate the Land Titles Transfer Tax in Manitoba?

We have a tool that will help you embedded in our App. Its available here… Land Titles Tool.

For a look at more comparisons and for a more in-depth article on the Land Titles Transfer Tax, go to the Winnipeg REALTORS® website at https://2muchltt.com There is even a link to contact your local MLA.

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Mortgage Insurance or Life Insurance: Home buyers choices buying a house

Mortgage Insurance or Life Insurance: Home buyers choices


Lets say you bought a new house or condo, and you are considering mortgage insurance.  Since mortgage insurance really is a form of life insurance, they’re both the same.  Potatoe, Potaahto, right?  Not so fast…..lets look at some key differences.

Mortgage Insurance vs. Life Insurance

Life Insurance means YOU are the beneficiary

In Life Insurance, YOU are the beneficiary, as opposed to mortgage insurance where the bank is automatically named as the beneficiary.  This is important, because it means that YOU decide how the insurance payout is used….as opposed to the payout only going against the mortgage balance.

The Payout amount remains the same

With mortgage insurance, only the remaining balance is paid off in case of your demise.  So as you start to pay off your mortgage over the years, the benefit of your mortgage insurance actually decreases over time.  With Life Insurance, the payout remains the same.

Guaranteed Payout

With Life Insurance, underwriting occurs at inception of policy as opposed to waiting until something happens to find out whether you qualify for the coverage.  The added benefit of this is that the premiums are based on you and your current health.  Discounts for non-smokers and age and sex apply in the Life Insurance option.

This last part is actually very important.  A good friend of mine just learned the hard way: His mom had passed away and after about 18 months, the bank still had not agreed to pay off the mortgage insurance, fighting the family every step of the way.  As my friend put it: “I’ll never get mortgage insurance again.  Bo, the agreement is 12-pages long, and 11-1/2 of those pages are designed to get the bank out of paying the benefits”….

Probably the biggest factor IN FAVOR of getting mortgage insurance is the simplicity of signing a document at the same time as signing the mortgage application.  Simple,…easy…..done!  As my friend put it...just pray you never need it!

Here is a summary of the differences:

LifeInsurance2

If you need a referral to a very knowledgable life insurance rep, call me anytime…..

If you’re thinking of buying your first (or next) house or condo, check out these 7 biggest mistakes made by home buyers.

And beware of the Closing Costs when buying a home in Winnipeg.

 

Our Latest Web-Stories

Never miss an episode of our real estate podcast.

Install our FREE Podcast App available on iOS and Android.
For your Apple Devices, click here to install our iOS App.
For your Android Devices, click here to install our Android App.

Check my videos on Youtube

Check out our Podcast