GTA REALTORS® View City Budget as Step Towards Repealing LTT

TORONTO, Janaury 19, 2011 — In a deputation to the City of Toronto’s Budget Committee later today at the East York Civic Centre, the Toronto Real Estate Board (TREB) will tell City Councillors that REALTORS® are encouraged with the direction of the City’s proposed 2011 Budget and believe that it is a significant step towards fulfilling Mayor Ford’s strong commitment to repeal the Toronto Land Transfer Tax.

TREB is scheduled as the first speaker, today at 6:00 p.m., at the City Budget Committee public hearings being held at the East York Civic Centre, 850 Coxwell Avenue.

“By demonstrating restraint and prudent fiscal management, this budget sets the stage for City Council to deliver on Mayor Ford’s clear commitment to repeal the Toronto Land Transfer Tax by next year,” said TREB President Bill Johnston.

For years, GTA REALTORS® have been telling the City that the fair way for it to address its financial challenges is to get its finances in order, instead of burdening homeowners and homebuyers with additional taxes, like the Land Transfer Tax.

“Torontonians spoke out strongly against the idea of the Land Transfer Tax when it was first proposed in 2007. The public spoke loudly then, and they spoke even louder last October when they gave Mayor Ford an overwhelming and clear mandate to repeal this unfair tax,” added Johnston.

TREB will be telling the City’s Budget Committee that the proposed budget that they are reviewing is an important step to delivering on the Mayor’s Land Transfer Tax mandate because it begins the process of addressing the City’s financial challenges with fair options, including cost-containment measures and a forthcoming detailed program and service review.

“For years, Toronto’s taxpayers have been bearing the burden of unsustainable City budgets. We believe that the proposed 2011 Budget stops the bleeding, and that by moving forward with Mayor Ford’s commitments, including repealing the Land Transfer Tax, next year’s budget will allow the City to flourish,” said Johnston.

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Second Suites in Toronto

Second Suites in Toronto

In an effort to increase the supply of affordable housing, Toronto City Council passed a by-law last year that legalized second suites, also known as accessory apartments.

As a result, second suites are now legal in the City of Toronto in all single family and semi-detached homes, providing they meet certain criteria, including fire and building codes (see below for details).

Following is a list of frequently asked questions regarding the legalization of existing second suites and the creation of new second suites in the City of Toronto. This background information was adapted from information provided by City of Toronto planning staff. For legal and zoning information on second suites in other Greater Toronto Area municipalities, please contact your local planning department.

 

FREQUENTLY ASKED QUESTIONS:
What is a second suite?

A second suite is a self-contained unit (rental or rent-free) in a single-detached or semi-detached house. Most second suites are basement apartments. They have also been called granny flats, in-law suites and accessory apartments.

Are second suites new?

No! In the past, second suites were permitted in some areas of the City (York, East York, and parts of former Etobicoke, North York and Toronto). Some parts of the City have had a long experience with this form of housing. As well, provincial legislation, in force between July 1994 and November 1995, allowed for the creation of second suites in all areas of the province.

Why has it taken a year for the City’s second suites by-law to come into effect?

In July 1999, City Council adopted the second suites by-law. This by-law was appealed to the Ontario Municipal Board (OMB) by a number of residents’ groups and individuals. The OMB held a hearing on the appeals in February 2000. The OMB issued a decision in April approving the City’s by-law but directed that two amendments be made. The amendments dealt with: (1) parking provisions in some neighbourhoods in the former Toronto, and (2) building alterations.

The final by-law was approved by Order of the OMB on July 6, 2000. As a result of the Order, the second suites by-law (including the amendments) is now in effect.

Where are second suites permitted in the City?

The new by-law permits second suites in all single-detached and semi-detached homes throughout the new City of Toronto — with certain conditions.

What are some of the conditions that apply to second suites?

Some of the conditions include:

the second suite must be self-contained with its own kitchen and bathroom.

the house, including any additions, must be at least 5 years old;

the floor area of the second suite must be smaller than the remaining unit;

in most cases, homes with a second suite must have at least 2 parking spaces and parking can be in tandem (one behind the other). There is an exception for parts of the former City of Toronto (R2, R3 and R4 districts) where only 1 parking space is required for a house with a second suite. Please contact the City of Toronto’s Urban Planning and Development Services Department to determine if a property is located in a R2, R3, or R4 district.

Before planning any changes to the outside appearance of a dwelling the homeowner should contact the City of Toronto’s Urban Planning and Development Services Department; and

all new second suites must comply with the Ontario Building Code and require a building permit. Existing second suites must comply with the Fire Code as well as zoning and property standards.

How can I find out if an existing second suite complies with the regulations?

The unit will have to be inspected by Fire Department staff. There is a fee for the inspection and you may be required to upgrade the suite to meet the code requirements and other standards. Contact the City’s Urban Planning and Development Services Department for more information (see phone numbers below).

Does the City provide grants or loans to encourage the creation of second suites?

There is currently no grant or loan program for second suites. The City is discussing the potential for a program with senior levels of government. TREB’s Government Relations staff is monitoring this initiative and will inform members if the City implements a program.

Will a second suite impact property taxes?

In most cases, there will be little impact on property taxes. A major exception would be where the second suite is created by constructing an addition, thereby significantly adding to the value of a house.

For specific zoning, property standards, or fire and building code questions please contact the City of Toronto’s Urban Planning and Development Services Department:

 

East York

(416) 397-4591

Etobicoke

(416) 394-8055

North York

(416) 395-7000

Scarborough

(416) 396-7071

Toronto

(416) 392-7522

York

(416) 394-2535

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Why should sellers list now …

As a Home owner you know that real estate prices and sales volume tend to rise in the first five or six months of the beginning of the year.
By August we tend to see a dip in sales as both buyers and sellers (and most realtors) are in vacation mode.
In general by September we see an increase in activity until December. Keep in mind that the volume of sales generally don’t reach the same plateau as in June/July after September.
So it would make sense for most sellers to list their home for sale when the market is at its best – May/June. Right?
Yes and No.
From a buyer’s perspective:
Because of new mortgage rules taking place in March and April, most first time home buyers will be looking for a closing date of mid March or so.
Not enough real estate inventory may make it difficult for buyers to find their dream home.
From a seller’s perspective:
These new mortgage rules will bring more buyers onto the market which could possibly mean better prices/terms on the sale of their home.
There is more competition in May and June; making much more competitive for sellers.
I propose that we get out there and list your home as soon as we can so that we can excel .
If you want to do sell for most and increase your profit substantially, you must contact us to start the process.

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Finance Minister Jim Flaherty announced …..

On January 17, Finance Minister Jim Flaherty announced three new changes to the rules for government insured (default insured) mortgages. The intent of these changes is to support the long-term stability of the housing market and address rising household debt in Canada.

3 changes to default insured mortgages

  1. Lowering the maximum amount consumers can borrow when refinancing their mortgages
    This change will lower the maximum mortgage amount to 85% of the appraised value of the property from the current 90%. This change will help to promote savings in homeownership and ensure that homeowners don’t become overextended by using all the equity they have built up in their home when refinancing.
  2. Reducing the maximum amortization period for new government insured (default insured) mortgages
    The maximum amortization for all new default insured mortgages will be reduced to 30 years from the current 35 years. This change will help reduce total borrowing costs for consumers, helping them to build up equity more quickly.
  3. Withdrawing government insurance backing on lines of credit secured by homes: effective April 18.
    No impact to RBC as we do not currently participate in this product.

The effective date of the first two changes will be March 18. Applications submitted and approved by CMHC prior to March 18 will still qualify under current guidelines.

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