Are you really buying? There is a risk -

The Toronto Real Estate market just seems to defying logic and continues to increase in price [and competition] for single family homes.  Taking the average sale price in the 905 [ ring of homes around the 416]   Land Transfer Tax Calculator net of First Time Buyer Rebates.

Average Sale Price in 905          $598,708
Ontario Land Transfer Tax              8,449
Toronto Land Transfer Tax              7,699
Inspection Legals      +/-                 2,500

Mitigating Factors;
You are impacted by two land transfer taxes PLUS the legal fees to close.   I am assuming that CMHC Hi Ratio fees do not apply ( unless you are media where everyone is buying with 5 % down)   Average Mortgage in Toronto is $270,000.

Buyers have been reduced by the Bank of Canada reducing recommended amortization terms to 25 years. You will be taking a five year fixed rate because that is prudent with all the rhetoric about increasing interest rates.

Selling after 4 years of ownership will incur the following expenses;

• Lawyer Fees      $ 1,600
• Mortgage Penalty at 3 months differential  $3,000
• Real Estate Fees   assumes 5% but we all negotiate  $30,000
• Irrespective of the property taxes and living expenses of heat, hydro, water, insurance repairs gardening, repairs and improvements....

The Toronto Real Estate market would need to gain just shy of 10% accumulated over the next 4 years JUST to BREAK EVEN.

Real Estate is something to buy and hold for decades; raise a family. Plant roots in a community, Join volunteer Groups and Community Watch.  Worship, have christenings and weddings.  Graduations.

I appreciate the benefits and concepts of home ownership and building equity.  I do not believe in Buying to Flip with our Expense and legal structure of ownership.

What do you think?  Ready to Buy a house?   You're staying put, Right?