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Legal Alerts, Spring 2008

Parties to new home sale transactions should note that the Ontario government is cracking down on the requirement to include costs of all construction extras in calculation of sale price for purposes of determining Land Transfer Taxes.

The new Ontario Mortgage Brokers, Lenders and Administrators Act comes into effect Jul. 1/08, and all current Mortgage Broker registrations will expire. Any person or entity carrying on business of dealing or trading in mortgages, administering mortgages or as a mortgage lender must be licensed with FSCO pursuant to the new Act unless an exemption applies. More information can be obtained from the Financial Services Commission of Ontario website at www.fsco.gov.on.ca/english/regulate/mortgagebrokers.

Recent amendments to the Cdn Income Act eliminate Cdn withholding tax on most interest payments made to non-residents on arm’s length debt obligations. The amendments allow foreign lenders to provide operating and revolving credit facilities to Cdn borrowers, and should provide Cdn borrowers with increased access to foreign capital.