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A Return to ‘Normal’? The State of Real Estate in 2022

 Wednesday, January 5, 2022     Marion Goard     Financial Health House and Home Real Estate Market Buying and Selling

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Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that led to a record number of home sales and a historically-high rate of appreciation, as prices soared by a national average of 19.9% year over year, according to the Canadian Real Estate Association.

There were signs in the second quarter that the red-hot housing market was beginning to simmer down. In June, the pace of sales slowed while the average sales price dipped 5.5% below the springtime peak.

But just when the market seemed to be cooling, home prices and sales volume ticked up again in the fall, leading the Royal Bank of Canada to speculate: “Canada’s housing market run has more in the tank.”

So what’s ahead for the Canadian real estate market in 2022? Here’s where industry experts predict the market is headed in the coming year.

MORTGAGE RATES WILL CREEP UP

The Bank of Canada has signalled that it plans to begin raising interest rates in the “middle quarters” of this year. What does that mean for mortgage rates?

Expect higher variable mortgage rates to come. In fact, according to industry trade blog Canadian Mortgage Trends, some lenders have already begun raising their variable rates in preparation. And according to the site, “Current market forecasts show the Bank of Canada on track for seven quarter-point (25 bps) rate hikes by the end of 2023, with Scotiabank expecting eight rate hikes.”

Since September, fixed mortgage rates—which follow the 5-year Bank of Canada bond yield—have also been climbing. Fortunately, economists believe the housing sector is well-positioned to absorb these higher interest rates.

Derek Holt, Scotiabank vice president and head of capital markets economics, told Canadian Mortgage Professional magazine in November, “The large increase in cash balances that occurred over the pandemic combined with the record-high amount of home equity on Canadian balance sheets, to me, paints a picture of a household sector that can manage the rate shock we’re likely to get.”

What does it mean for you? Low mortgage rates can reduce your monthly payment, make it easier to qualify for a mortgage, and make home-ownership more affordable. Fortunately, there’s still time to take advantage of historically-low rates. I’d be happy to connect you with a trusted lending professional in our network.

VOLUME OF SALES WILL DECREASE

A record number of homes were sold in Canada last year. The Canadian Real Estate Association estimates that 656,300 home purchases took place, which is an 18.8% increase over 2020. So it’s no surprise that the pace of sales would eventually slow. Don't forget though that these stats reflect national averages and number for every community vary. You're best to check with a real estate sales representative in your area for specific details.

The association predicts that, nationally, the number of home sales will fall by 12.1% in 2022, which would still make 2022 the second-best year on record.

It attributes this relative slowdown to affordability challenges and a lack of inventory but expects sales volume to remain high by historical standards. “Limited supply and higher prices are expected to tap the brakes on activity in 2022 compared to 2021, although increased churn in resale markets resulting from the COVID-related shake-up to so many people’s lives may continue to boost activity above what was normal before COVID-19.”

What does it mean for you? The frenzied market we experienced last year required a drop-everything commitment from many of our clients, so a slower pace of sales should be a welcome relief. However, buyers should still be prepared to compete for the best properties. I can help you craft a compelling offer without compromising your best interests.

THE MARKET WILL BECOME MORE BALANCED

In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus, a shift to remote work, and economic stimulus triggered a huge up-tick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labour shortages hindered new construction. 

This led to an extreme market imbalance that benefited sellers and frustrated buyers. According to Abhilasha Singh, an economist at Moody’s Analytics, “almost all indicators of housing market activity shot through the roof.” But, she continued, “The housing market is now showing signs of returning to earth.”

The Royal Bank of Canada expects to see demand soften gradually as rising prices and interest rates push the cost of home-ownership out of reach for many would-be buyers. And while the supply of available homes continues to remain low, according to Singh, “the pace of building in Canada remains elevated compared with historical averages thanks to low interest rates.”

What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with less competition and a slower pace of sales, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.

HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE

Nationwide, home prices rose an average of 19.9% in 2021 however the rate of appreciation is expected to slow down in 2022. The Canadian Real Estate Association forecasts that the national average home price will increase by 5.6% to $718,000 in 2022.

Singh of Moody’s Analytics agrees that price growth will slow this year and could “reach a near standstill in late 2022 but avoid any significant contractions.”

At the same time, some experts caution against a “wait and see” mentality for buyers. “Affordability is unlikely to improve [this] year as prices should march higher, even as interest rates creep upwards as well,” Rishi Sondhi, an economist at TD Economics, told Reuters. “We think rate hikes will weigh on, but not upend, demand, as the macro backdrop should remain supportive for sales.”

What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. I can help you get the most for your money in today’s market.

 I'M HERE TO GUIDE YOU

While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighbourhood. 

If you’re considering buying or selling a home in 2022, contact me to schedule a free consultation. I’ll work with you to develop an action plan to meet your real estate goals this year.


How to Bridge the Appraisal Gap in Today's Real Estate Market

 Monday, November 15, 2021     Marion Goard     Financial Health House and Home Buying and Selling

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If you're searching for drama, don't limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs, the appraisal process - historically a standard part of a home purchase - is receiving more attention than ever. 

Whether you're a buyer or a seller, it's never been more important to understand the appraisal process and how it can be impacted by a quickly appreciating and highly competitive housing market. It's also crucial to work with a skilled real estate agent who can guide you to a successful closing without overpaying (if you're a buyer) or overcompensating (if you're a seller). Find out how appraisals work -and in some cases, don't work - in today's unique real estate environment.

APPRAISAL REQUIREMENTS

An appraisal is an objective assessment of a property's market value performed by an independent licensed appraiser. Mortgage lenders use appraisals to lower their risk of loss in the event a buyer stops paying their loan. It provides assurance that the home's value meets or exceeds the amount being lent for its purchase.

In certain circumstances, an appraisal might be avoided. For example, when a buyer purchases mortgage insurance because they have a down payment of less than 20%. In that instance, the mortgage insurance would cover the lender's loss in a case of default. Or, if a buyer makes a large down payment, a lender may waive their right of appraisal. 

Additionally, sometimes a lender will use an automated valuation model (AVM) to estimate the property's value. According to the Appraisal Institute of Canada, "AVM's are computer programs that provide real estate market analysis and estimates of value." if the sale price falls comfortably within the AVM's range of value, a lender may skip a formal appraisal.

However, in the event a formal appraisal is required, it will need to be conducted by a licensed and authorized appraiser. In most cases, the appraiser will analyze the property's condition and review the value of comparable properties that have recently sold. Using this information, they will determine the home's current market value. Mortgage borrowers are usually expected to pay for the cost of the appraisal.

APPRAISALS IN A RAPIDLY SHIFTING MARKET

Problems can arise when the appraisal comes in lower than the sale prices. And, while low appraisals are not common, they are more than likely to happen in a rapidly appreciating market, like the one we are experiencing now. That's because appraisers use comparable sales (commonly referred to as comps) to determine a property's value. These could include homes that went under contract weeks or even months ago. With home prices rising so quickly, today's comps may be lagging behind the market's current reality. Thus, the appraiser may be basing their assessment on stale data, resulting in a low valuation.

According to Kevin Lonsdale, Executive Director of the Canadian National Association of Real Estate Appraisers, the best valuations should be based on 'data, not emotion. This emotional process where people are outbidding each other creates a disconnect and that then becomes a comparable six months down the road. It's very difficult to value properties based on what the market wants to pay for them."

HOW ARE BUYERS AND SELLERS IMPACTED BY A LOW APPRAISAL?

In a balanced market, a financing condition is a standard inclusion in a home purchase offer. It enables the buyer to make the closing of the transaction dependent on their ability to secure a mortgage. And in many cases, the loan is configured on a satisfactory appraisal, wherein the value of the property is at or near the purchase price. 

But in today's market, sellers often hold the upper hand because the current demand for homes exceeds the available supply. That's why many buyers are choosing to exclude the financing condition altogether, as a way to sweeten their offer in a competitive bidding process. 

However, this approach can leave a buyer vulnerable if the appraisal comes back lower than expected. Without a financing condition, the buyer will be obligated to come up with enough cash to bridge the gap between the contract price and the appraised value - or be forced to walk away from the transaction and potentially lose their deposit. 

It may seem, then, that a buyer carries the sole risk of a low appraisal. However, the sellers will have wasted time and money with little to show for it. And they run the risk that the market may have cooled or interest in their home may have waned by the time they relist.

Sellers should keep this in mind when evaluating offers. The offer price should never be the sole consideration. We weigh a range of factors when advising our clients, including a buyer's conditions, mortgage qualifications, financial resources, and deposit size, among others.

According to Lonsdale, overheated blind bidding in Canadian real estate means that there is additional pressure on everyone involved in the transaction. With a tight timeline, there's not always enough time for proper due diligence, putting stress on the transaction and on the buyer and seller involved.

MITIGATE YOUR RISK WITH THE BEST REPRESENTATION

There's never been a market quite like this one before. That's why you need a master negotiator on your side who has the skills, instincts, and experience to get the deal done.. no matter what surprises may pop up along the way. If you're a buyer, I can help you compete in this unprecedented market... without getting steamrolled. And if you're a seller, I know how to get top dollar for your home while minimizing hassle and stress. Contact me today to schedule a complimentary consultation.

 


How to Combat Decision Fatigue When Downsizing

 Monday, June 7, 2021     Marion Goard     Financial Health House and Home Real Estate Market Buying and Selling

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Moving from one home to another requires so many careful considerations along the way.

Not only do you need to decide whether to work with a real estate agent, you need to decide how you want to price your current home to get it sold, all while planning ahead for your future home. Your budget, which neighbourhood you want to live in, potential maintenance needs, along with how your lifestyle will be impacted are just a few of the important decisions that need to be made in the process. 

Now, combine that with downsizing. Consider having to determine your ability to keep every single item in your home. For seniors especially, this can mean having to sell or give away valued furniture and family heirlooms, going through years worth of collected items, and essentially dismantling an entire life within their beloved home. 

How do you prioritize those sentimental items and memories along with the necessities? This can feel incredibly overwhelming, and may ultimately lead to decision fatigue.

We have all experienced decision fatigue at some point in our lives. Picture this: You have just spent a long day at work, taking care of every task meticulously. Perhaps you’re also a parent that must coordinate multiple extra curricular activities, keeping track of more than one schedule at a time. You arrive home in the evening, and a member of your family asks what will be for dinner, and your brain quite literally shuts down. You do not want to, and simply cannot make that decision.

The Seniors Real Estate Institute (SREI) describes decision fatigue as the inability to make quality decisions when you have had to make too many in a short period of time. The brain can block the function that allows decisions to be made, regardless of whether you have more to make, or not. Tasks can start to pile up, and apathy can set in — halting the entire process of downsizing.

Making multiple significant decisions is challenging at any age, but even more so for our seniors. This means that the job of a real estate agent isn’t simply to look after the care and safety of their homes, but of their well-being as well. Fortunately, there are some things that can be done to combat decision fatigue.

 

1. Complete Paperwork in Increments

Spreading out signing various documents can lighten the workload to remove some stress. These do not necessarily need to be completed all at once, and taking advantage of that flexibility can make or break a downsizing process when decision fatigue is setting in.

2. Access Available Resources

If possible, encourage your clients to bring family members on board to provide support while going through sentimental items in the home. Hiring movers, packers, and cleaners can provide comfort and convenience. Looking into storage facilities may mean not having to sell or give away precious items.

3. Watch for Signs

Knowing the signs of decision fatigue and recognizing them as early as possible can make all the difference in cultivating a smooth downsizing process. Some of these signs include, but are not limited to procrastination, impulsivity, avoidance, indecision, irritability and/or anxiety. 

4. Encourage and Celebrate

Sometimes making the tiniest decision can feel like a big win, so celebrate that! If your clients feel encouraged and empowered as they make the smaller decisions, they will have an easier time tackling the larger ones.

 

The care and safety of our seniors as they downsize is of the utmost importance. Having a Master Accredited Senior Agent (M-ASA) like myself  involved ensures a smooth process where nothing gets overlooked.

Thank you to the Senior Real Estate Institute for providing some of the valuable information I’ve included in this blog post.


Finding a New Home for Your Next Stage of Life

 Thursday, May 6, 2021     Marion Goard     Financial Health House and Home Buying and Selling

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Imagine the first place you lived as a young adult. Now imagine trying to fit your life today into that space. Not pretty, right? 

For most of us, our housing needs are cyclical. A newly independent adult can find freedom and flexibility in even a tiny apartment. That same space, to a growing family, would feel stifling. For empty nesters, a large home with several unused bedrooms can become impractical to heat and clean. It’s no surprise that life transitions often trigger a home purchase. 

While your home-buying journey may not look like your neighbour’s or friend’s, broad trends can help you understand what to keep in mind as you house hunt. No one wants to regret their home purchase, and taking the time now to think about exactly what you need can save a lot of heartache later.

The Newly Married or Partnered Couple

The financial and legal commitment of both traditional and common-law marriage has provided a springboard to home-ownership for centuries. And while the average age of first marriage in Canada is around 30, the average age of first home purchase has shifted even later to 36. No matter your age, there are some key factors that you should consider when you are ready to enter into your first home purchase together.

Affordability is Key

There’s no doubt about it—with home prices that just keep climbing, many first-time buyers feel that the deck is stacked against them when it comes to home-ownership. But stepping onto the property ladder can be more doable than many realize, especially in today’s low mortgage rate environment. 

While many buyers are holding out for their dream home, embracing the concept of a starter home can open a lot of doors. In fact, that’s a popular approach for first-time home-buyers to take. Fifty percent of first-time Canadian buyers report that they plan to eventually upgrade to a larger home. 

Chosen carefully, a starter home can be a great investment as well as a launch-pad for your life together. If you focus on buying a home you can afford now with strong potential for appreciation, you can build equity alongside your savings, positioning you to trade up in the future if your needs change.

Taking Advantage of Low Mortgage Rates

Canadian mortgage rates hit record lows in summer 2020, and while they are gradually creeping back up, now is still an ideal time to purchase your first home together.  A lower interest rate can save you a bundle over the life of your loan, which can significantly increase the quality of home you can get for your money. 

But what if both halves of a couple don’t have good credit? You still have options. First, boosting a credit score can be easier than you think—simply paying your credit cards down below 35% of your limit can go a long way. But if that’s not enough to raise your score, you might consider taking out the mortgage in only the better-scoring partner’s name. The downside is that applying for a mortgage with only one income will reduce your qualification amount. And if you take that route, make sure you understand the legal and financial implications for both parties should the relationship end.

Commute and Lifestyle Considerations

Whether you’ve lived in a rental together for years or are sharing a home for the first time, you know that living together involves some compromises. But there are certain home features that can make life easier in the future if you identify them now. The number of bathrooms, availability of closet space, and even things like kitchen layout can make a big difference in your day-to-day life and relationship. 

Your home’s location will also have a significant impact on your quality of life, so consider it carefully. What will commuting look like for each of you? And if you have different interests or hobbies—say, museums vs. hiking—you’ll need to find a community that meets both your needs. Need some help identifying the ideal location that fits within your budget? We can match you with some great neighbourhoods that offer the perfect mix of amenities and affordability. 

The Growing Family 

Having kids changes things—fast. With a couple of rowdy preteens and maybe some pets in the mix, that 1,600 square foot home that felt palatial to two adults suddenly becomes a lot more cramped. Whether you’ve just had your first child or are getting to the point where your kids can’t comfortably share a bedroom any longer, there’s plenty to consider when you’re ready to size up to a home that will fit your growing family. 

The Importance of School Districts

For many parents, the desire to give their kids the best education—especially once they are in middle and high school— surpasses even their desire for more breathing room. In fact, home-buyers report that school district is one of their top concerns. Of course, homes in the best-rated districts tend to be more expensive and harder to nab. But when push comes to shove, many buyers with kids prefer to sacrifice a bit of space to find a home in their desired location.

But when you’re moving to a new community, it can be tough to figure out what the local schools are actually like—and online ratings don't tell the whole story. That’s why talking to a local real estate agent can be a game-changer. We don’t just work in this community; we know it inside and out.

Lifestyle Considerations

For many families, living space is a key priority. Once you have teenagers who want space to hang out with their friends, a finished basement or a rec room can be a huge bonus (and can help you protect some quieter living space for yourself). 

A good layout can also make family life a lot easier. For example, an open plan is invaluable if you want to cook dinner while keeping an eye on your young kids playing in the living room. And if you think that you might expand your family further in the future, be sure that the home you purchase has enough bedrooms and bathrooms to accommodate that comfortably. 

Functionality

Try to think about how each room will fit into your day-to-day. Are you anticipating keeping the house stocked to feed hungry teenagers? A pantry might rise to the top of the list. Dreading the loads of laundry that come with both infants and older kids (especially if they play sports)? The task can be much more bearable in a well-designed laundry room. Imagine a typical day or week of chores in the house to identify which features will have the biggest impact.

Chances are, you won’t find every nice-to-have in one home, which is why identifying the must-haves can be such a boon to the decision-making process. We can help you assess your options and give you a sense of what is realistic within your budget.

The Empty Nesters 

When we talk about empty nesters, we usually think about downsizing. With kids out of the house, extra bedrooms and living space can quickly become more trouble than they’re worth. While the average buyer with young kids is most likely to trade up to a larger home, older buyers often sell the family home and move into a smaller, less expensive home. In fact, more than half of Canadian Baby Boomers consider the area where they live too expensive for retirement.

Maintenance and Livability

What factors are driving your decision to move? Identifying those early in the process can help you narrow down your search. For example, do you want to have space for a garden, or would you prefer to avoid dealing with lawn care altogether? What about home maintenance? In many cases, a newer home will require less maintenance than an older one and a smaller one will take less time to clean. It’s not surprising that condos are among the most popular types of homes for Baby Boomers given they require less upkeep than single-family homes.

Lifestyle Considerations

Many empty nesters have retired or are nearing retirement age. This could be your chance to finally pursue hobbies and passions that were just too hard to squeeze into a 9-5. If you’re ready to move, consider how you’d like to spend your days and seek out a home that will help make that dream a reality. For some, that might mean living near a golf course or a beach. For others, being able to walk downtown for a nice dinner out is the priority. And with more time to spend as you wish, proximity to a supportive community of friends and family is priceless. 

Ability to Age in Place

Let’s face it—we can’t escape ageing. If you’re looking for a home to retire in, accessibility should be top-of-mind. This may mean a single-story home or simply having adequate spaces on the first floor to rearrange as needed. While buying a home that you plan to renovate from the start is a viable option, being forced into renovations (because of the realities of ageing) a few years down the road could seriously dig into your nest egg. Location matters, too—if your family will be providing support, are they close by? Can you easily reach necessities like grocery stores and healthcare? While it’s tempting to put it out of our minds, a few careful considerations now can make staying in your home long-term much more feasible.

Finding the Right Home for Right Now

One thing is for sure—life never stands still. And your housing needs won’t, either. In fact, the average Canadian homeowner will own 4.5 to 5.5 houses over their lifetime. At each milestone, a careful assessment of your housing options will ensure that you are well-positioned to embrace all the changes to come.

Whatever stage you’re embarking on next, I'm here to help. My insight into local neighbourhoods, prices, and housing stock will help you hone in on exactly where you want to live and what kind of home is right for you. I’ve worked with home buyers in every stage of life, so know exactly what questions you need to ask. Buying a home—whether it’s your first or your fifth—is a big decision, but I'm here to support you every step of the way.


Money-saving credits and helpful tips for seniors this 2020 tax season and beyond

 Wednesday, April 14, 2021     Marion Goard     Financial Health House and Home

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When it comes to filing your income tax return, making sure you claim potential benefits and credits is important, as often it can help put more money back into your pocket. With tax season upon us, it's worth setting aside some time to do a bit of homework on the benefits that you may be able to take advantage of.

The great news for seniors is that there are many wonderful tax credits and benefits available. And, even if you have no taxable income, you could still be eligible to receive tax-free money. For many seniors in their retirement years, any opportunity to save money is one you wouldn't want to miss.

As a senior (65 and older) and depending on your total 2020 income, you may be able to file your income tax returns claiming a number of refundable tax credits - and for prior years as well, if you have not previously filed. Let's look at some of the 2020 tax-free credits that are payable to seniors who file income tax returns.

8 Tax credits that are available to seniors in Ontario/Canada in 2020

1. Ontario Senior Homeowners' Property Tax Grant

The OSHPTG is available to Ontario senior homeowners who pay property taxes and who have low or moderate incomes. It is an annual payment that seniors must apply for each year when they file their income tax and benefit return. The maximum 2021 payment is the lesser of $500 and the eligible property tax paid by or for you for 2020. If you are single, separated, divorced, or widowed, the 2021 grant will be the maximum payment reduced by 3.33% of your adjusted net income over $35,000. If you adjusted net income is $50,000 or greater, you are not eligible for this grant.

2. Ontario Sales Tax Credit

The Ontario sales tax credit (OSTC) is a tax-free payment designed to provide relief to Ontarians with low or moderate incomes for the sales tax they pay. Beginning July 2021, seniors whose 2020 income does not exceed $24,115 (individual) or $30,143 (couple) are eligible to receive $26 monthly ($52 monthly for couples). This credit is eliminated for individuals with 2020 income over $41,940 and $45,793 for couples.

3. Ontario Seniors' Public Transit Tax Credit

The Ontario Seniors' Public Transit Tax Credit is a refundable tax credit to help seniors with public transit costs. This tax credit is based on 10% of eligible Ontario transit costs, and are fairs paid for short haul or day trips by bus, subway, train, and specialized public transit services for seniors with disabilities. Fares for using long haul services like Via Rail or Grayhound are not eligible for this tax credit, and the maximum claim is $3000 for maximum credit of $450.

4. Federal Goods and Services Tax Credit

The goods and services tax/harmonized sales tax (GST/HST) credit is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset the GST or HST that they pay. If your income doesn't exceed $38,507 beginning July 2021, and every three months following until April 2022, you are eligible to receive $74 every three months. In addition, if your spouse or partner's income also doesn't exceed $38,507, you are eligible to receive $142 every three months. This credit, however, is reduced by 5% of the amount of your income and if your spouse or partner's income exceeds $38,507. This tax credit is calculated by Revenue Canada based on the information in yours and your partner's tax return.

5. Federal Home Accessibility Tax Credit (HATC)

Available for seniors or individuals with disabilities that are eligible to claim the Disability Tax Credit, this tax credit reduces federal income taxes payable to a maximum of $1,500. This credit is also available to the individual’s spouse or common law partner if that individual has no net income for 2020. The credit is calculated at 15% of qualifying renovation expenditures to a maximum of $10,000 to a person’s owned or occupied housing residence (and share of the capital stock of an occupied unit of a co-op housing corporation) to improve mobility and reduce the risk of injury.

6. Federal & Ontario Disability Tax Credit

Seniors may be eligible for the Federal & Ontario Disability Tax Credit if a qualified medical practitioner certifies on form T2201 that they have a prolonged impairment and that the effects are such that they’re markedly restricted in their ability to speak, hear, see, walk, eat, dress, perform the mental functions necessary for everyday life, and/or have impaired bowel or bladder functions preventing them from proper elimination.

This non-refundable tax credit reduces income tax payable by $1,719 for 2020. If the person applying has no taxable income, the credit can be transferred to another relative who provides support to them.

7. Canada Caregiver Credit

If you support a spouse, common-law partner, or a dependent with a physical or mental impairment, you may be eligible to receive this non-refundable tax credit. You may also be eligible to claim this credit for one or more individuals — including you or your spouse or common law partner’s child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew — if they depend on your support because of a physical or mental impairment. An individual is considered to depend on your support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.

The amount you can claim depends on your relationship to the person for whom you are claiming the credit, your circumstances, the person’s net income, and whether other credits are being claimed for that person.

8. Property tax relief for homes that are built or modified to accommodate seniors or individuals with disabilities

Property taxpayers who inform the Municipal Property Assessment Corporation (MPAC) that they’ve built or modified their home to accommodate seniors or individuals with disabilities, and who have had their expenditure(s) verified by MPAC, may qualify for a property tax exemption.

The exempt portion, however, is not included in the assessment roll for the next taxation year, and taxes are not charged against it. If MPAC assessed the home as entirely taxable for the current or previous taxation years and the owner is applying for the exemption now, then the owner is encouraged to contract their local municipality to determine if they qualify for a tax rebate for said previous years.

Tips for preparing your income tax return 

There’s no question that preparing to file your income tax can feel daunting, stressful, and overwhelming. But remember, there are plenty of tax-free benefits that are available to seniors that can reduce the amount of money you owe. In addition to those mentioned above, remember that there are other benefits as well, such as the Age Amount Tax Credit, the Pension Income Amount Tax Credit, and of course tax refunds for Medical Expenses

Another important thing to remember is that if you received COVID-19 benefits, it might affect your tax return. In particular, the Canada Recovery Caregiving Benefit (CRCB) is considered taxable income, therefore the total amounts that you received from this benefit will have to be included on your tax return. 

If you have a modest income and a simple tax situation, fortunately there are volunteers near you that may be able to complete your tax return free of charge. This year, to reduce the spread of COVID-19, volunteers may be able to complete your return by video conferencing or phone, or through a document drop-off arraignment. To determine if you’re eligible and to find a tax clinic near you, visit canada.ca/taxes-help

A big thanks to the Burlington Age Friendly Council and Community Development Halton for making much of the information featured in this blog post available.

If you or an elderly loved one are looking for more support in the way of preparing to file your income tax return, don’t hesitate to reach out to me via email at mariongoard@kw.com and I’d be more than happy to connect you with a reputable and trusted accountant in the area who may be able to support your needs and help take the guesswork out of preparing your income tax return.

Testimonials

  Marion helped us purchase our dream home and we are very thankful for all her hard work and devotion to us. We relocated from Montreal to the GTA and Marion was accommodating to all our needs. Whenever we were in town, Marion made herself available and when we were out of town, she sent us updates on new and existing listings. Although we had an idea where to look, she helped us find our home in an area we didn't even consider. She listened to all our needs and presented us with all our options. Marion’s professionalism, commitment and willingness to go above and beyond is a testament to her dedication to her clients. We send our sincerest gratitude to Marion for helping us find our family home!

Stephanie and Frank Femia, Binbrook, ON

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