Category Archives for First Time Home Buyer BC

Stress Test Mortgage Update - November 2017

NDP Government Changes BC Housing Landscape

The NDP provincial government has released its new budget. From a housing perspective here are the highlights (or lowlights depending on your perspective). 1. Speculation Tax This new, annual property tax will apply to foreign and domestic homeowners who do not pay income tax in BC, including those who leave their properties vacant. The new tax will initially apply to homes in Metro Vancouver, the Fraser Valley and capital regional districts in Victoria and Nanaimo, Kelowna and West Kelowna. In 2018, the tax rate will be 0.5% of assessed value. In 2019, it will rise to 2.0% of assessed value. 2. Victoria Area Foreign Buyers Tax Effective Wednesday February 21, 2018, the government will increase the foreign buyers tax from 15% to 20% and extend the tax to the Fraser Valley, the capital regional districts in Victoria and Nanaimo and the Central Okanagan Regional Districts. What is a foreign buyer? See […]

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Stress Test Mortgage Update - November 2017

BC Budget Announcement: First Time Home Buyer Property Transfer Tax Full Exemption Raised to $500,000

BC Budget Announcement: First Time Home Buyer Property Transfer Tax Full Exemption Raised to $500,000 FIRST TIME HOME BUYERS PROPERTY TRANSFER TAX EXEMPTION Property Transfer Tax should not be confused with Property Tax. The Property Transfer Tax is a one time tax paid to the Provincial Government by purchasers of real estate. The Property Tax is the tax paid on an annual basis to the local City/Municipality. “First Time Home Buyers” who qualify, may be exempt from the British Columbia Property Transfer Tax. This tax is normally 1% of the first $200,000.00 of market value and 2% of any amount above $200,000.00. The following are some guidelines to determine if you are eligible for the first time home buyers exemption. Please consider if you meet the following criteria: * You are purchasing a residential property within the province of British Columbia which has a fair market value that does not […]

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Stress Test Mortgage Update - November 2017

Breaking News: BC Mortgage First Time Buyer Down Payment Loan

Do you qualify for the BC Down Payment Loan Program? You can find all the eligibility details – CLICK here. VICTORIA — The B.C. government will loan first-time home buyers some of the cash they need to afford their down payment, Premier Christy Clark announced Thursday. The program will provide a government-backed loan of up to $37,500, or five per cent, of the purchase price of a home for qualified buyers, starting Jan. 16, 2017. The goal is to match part of a person’s down payment to help them afford to buy their first home, as long as they already qualify for a mortgage under federal rules and the home is worth less than $750,000. The 25-year loan is interest-free for the first five years, and does not require the homeowner to even pay down the principal during those first five years, as long as they keep the home as […]

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Stress Test Mortgage Update - November 2017

Help for First Time Home Buyers in BC

Hi everyone. Not sure if you have heard but on December 15th the BC Premier announced a new program to help first time home buyers. We are still working out the details but the basics are as follows. The government will lend the buyer funds equal to the down payment up to $37,500, or 5% of the purchase price. The loan will be secured by a second mortgage with no payments over the first 5 years. The amortization period for the second mortgage will be 25 years, and payments will start in year 6. Buyers must be pre-approved for an insured high ratio first mortgage and use the property as their principal residence. Applications do not start until Jan 16, 2017 and loans advanced from Feb 15, 2017 to March 31, 2020. The Buyer must be a Canadian citizen or permanent resident for at least 5 years, resided in BC […]

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Stress Test Mortgage Update - November 2017

5 Ways to Improve Mortgage Qualifying Success

Yes, new mortgage rules have made it harder to qualify for a mortgage, whether you are a first-time buyer or looking to renew or refinance your mortgage with a new lender. That’s why you should get yourself mortgage ready well in advance. Here are 5 tips to help you do just that: Get your credit report. Getting a copy of your credit report will let you know how you will be viewed by lenders. You can order yours for free through the mail or for a small fee online at www.equifax.ca. If you spot a problem, contact Equifax to resolve the issue. Polish your credit. You can boost your score by several points fairly quickly with continual good credit habits. Most importantly, pay your bills on time, every time. Don’t let your credit accounts exceed 50% of the credit available. Before you cancel any credit cards, get advice. And don’t […]

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Stress Test Mortgage Update - November 2017

10 Great Reasons to Use a Mortgage Professional

Get independent, objective advice on your financial options. Mortgage Professionals are not restricted to any one bank or range of products. They work for you and can make objective recommendations on financing solutions through hundreds of lenders. Save time with convenient one-stop-shopping. Mortgage Professionals do the research and shopping for you so there’s no need for you to waste time organizing appointments with competing mortgage lenders when you could be house-hunting! Negotiating on your behalf. Negotiating can be stressful. Mortgage Professionals act in your best interest and do all the negotiating to secure competitive rates and terms that make sense for you. More choices. With a network of major lenders and products to choose from, Mortgage Professionals can source your ideal mortgage options from banks, credit unions, non-traditional lenders and more. Assurance that you’re getting the best rates and terms. Mortgage Professionals have the negotiating power because lenders compete for […]

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Stress Test Mortgage Update - November 2017

What About Housing? [The Millennial Generation]

The world has changed dramatically over the past eight years since the Global Recession hit in 2008. The biggest change and one that will have the biggest impact to future economies is the changing demographics of the world’s population. Millennials (ages 18-34) have now surpassed the Baby Boomer generation (ages 51-69) and Gen Xers (ages 35 to 50) will surpass Boomers by 2028. These two groups, Millennials and Gen Xers,  are quite opposite to Boomers in their spending habits, in their lifestyle choices, and their personal goals and will have a definite impact on our economies worldwide. Their spending habits, for example, are vastly different: Millennials are thrifty, buying more but spending about a quarter less on average than Boomers or Gen Xers, according to a new TD Bank report. Research has found that Millennials are “confident, self-expressive, liberal, upbeat and open to change.” There are also some interesting differences […]

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Stress Test Mortgage Update - November 2017

This is the Home Buyer of the Future

This past June, Mortgage Professionals Canada published their survey results on the Next Generation of Homebuyers; adults under the age of 40 who don’t currently own a home but expect to own in the future. If you are planning on buying, or help a child get into homeownership, these results can be an interesting comparison to your own situation.  Here are some of the key findings: 52% are under 30 years old, 48% aged 30 to 39 55% singe, 39% married/living with a partner 81% have no children 72% agree that mortgages are good debt, and 76% agree real estate is a good long-term investment. 58% are optimistic about the economy in the next 12 months. The decision to buy is often influenced by key life events – start a family (33%), getting a promotion/raise (30%), getting married (29%), inheritance (8%). Primary downpayment sources are personal savings (73%), gift/loan from […]

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Stress Test Mortgage Update - November 2017

Millennials are moving out of their parents’ basements – and driving up rents

By Lawrence Lewitinn | Yahoo Finance6 Homebuyers are becoming more optimistic, and millennials are finally moving out of their parents’ homes, according to one of the most important institutions in the housing market. From our sources in the USA. Fannie Mae’s (FNMA) Home Purchase Sentiment Index (HPSI) increased in February to 82.7 from 81.5 in January. Driving up the index is a view that home prices will rise at a slower pace than the current rate over the next 12 months, notes Doug Duncan, Fannie Mae’s chief economist. The HPSI is based on six questions in a survey of about 1,000 homebuyers. The survey also shows that homebuyers are seeing higher incomes and gaining confidence that they will keep their jobs. “Certainly, rising home prices mean unless incomes are rising that fast, it becomes a hurdle for buyers,” said Duncan. Another piece of research from Fannie Mae challenges the narrative […]

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Stress Test Mortgage Update - November 2017

8 Surprise Expenses For New Home Buyers in BC

By April Dykman Over a year ago, I bought my first home. And while I’d been warned about the extra expenses that come with homeownership, there were still some surprises. I don’t mean the “unexpected” costs of property taxes and repairs — expenses that are often covered in articles about new homeownership. “Surprise! There’s no landlord to come fix your garbage disposal.” Is that really a surprise to anyone, though? No, what I’m talking about are the less obvious expenses — the ones that new homeowners probably aren’t thinking about when they sign the closing documents and get the keys to their new home. Here are some of those less obvious expenses that took me by surprise in the last year. 1. Changing the locks. When I first moved in, my dad “reminded” me to call a locksmith and have the locks changed. Only, silly me, I had no idea that I should […]

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Stress Test Mortgage Update - November 2017

Canadian millennials buying houses at younger age than their parents: report

CBC – Wed, 27 Jan, 2016 Canadian millennials aged 25 to 34 are better off than their American counterparts — and are entering the housing market at a younger age than their parents did, suggests a new report from TD Economics. “In Canada, millennials … have found good jobs, higher incomes — particularly females,” said Diana Petramala, an economist for TD Economics and co-author of the report. “That’s allowed them to enter home ownership sooner than their U.S. counterparts, and even at a younger age than their parents did over 30 years ago.” The report said that as of the first half of 2015, over 50 per cent of millennials in Canada owned a home, compared to 36 per cent in the U.S. Less debt The study also found that Canadian millennials have less student debt than their U.S. counterparts — and the debt they do hold is mostly due […]

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Stress Test Mortgage Update - November 2017

House over $500,000? New downpayment rules in February.

On February 15, 2016, minimum downpayment rules are changing in Canada – for homes worth more than $500,000. The change is straightforward: for any portion of the house price over $500,000, buyers will need to provide 10% downpayment for an insured mortgage. The minimum downpayment for the first $500,000 will remain unchanged at 5%. How much difference could it make? Here’s a simple example: Right now, you could get a mortgage for a $750,000 home with a downpayment of $37,500: a simple 5% of $750,000. Once the new rules kick in next month, you’ll need $50,000 downpayment for the same house: 5% for the first $500,000 ($25,000), plus 10% for the $250,000 over the limit (another $25,000). The change was announced in mid-December by the new Liberal Finance Minister, Bill Morneau. While most Canadian homebuyers will be unaffected, the move is designed to protect Canadian homeowners by ensuring a stronger […]

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Stress Test Mortgage Update - November 2017

Ten Great Reasons to Use a Mortgage Broker

For many Canadians, mortgage payments are their single biggest expense. Yet most don’t comparison shop to ensure they’re getting the best mortgage rate and terms available, which can cost tens of thousands of dollars over their mortgage years. Don’t make the same mistake! Here are 10 reasons why you need a mortgage broker working for you: 1. CHOICE. A wide range of lenders, including major banks, credit unions, and other national, regional and private lenders will instantly become accessible to you, ensuring that your specific needs are matched to the right mortgage. 2. GREAT RATES. Get money in your pocket by taking advantage of Invis’ clout with lenders. Our stellar reputation and longstanding experience allows us to negotiate great rates and access limited time specials. 3. A FOCUSED EXPERT. A mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace […]

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Stress Test Mortgage Update - November 2017

Six ways to boost your credit score

Your credit score is essentially your passport to financial opportunities. With a possible range of 300 to 900, your number tells lenders what kind of a risk you are likely to be as a borrower. A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. That’s why it’s important to know the six credit behaviors that can keep your score high, or give it a boost! 1. Know what you’re working with. Get a copy of your report and see what your lender sees. Credit reports can be ordered for free through the mail or, for a small fee, online at www.equifax.ca 2. On time, all the time. The single biggest factor in your credit score is having a timely bill payment history. Start today with a commitment to never let a bill get past due. 3. Know your […]

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Stress Test Mortgage Update - November 2017

Snapd Victoria | First Time Buyer Q&A Series Part 1: RRSP Home Buyers’ Plan Simplified

First Time Buyer Q&A Series Part 1: RRSP Home Buyers’ Plan Simplified The Canadian government’s Home Buyers’ Plan (HBP) allows you as a first time home buyer to borrow up to $25,000 from your RRSP for a down payment, tax-free. If you’re purchasing with someone who is also a first time homebuyer, you can both access $25,000 from your RRSP for a combined total of $50,000. This is an excellent option for First Time Home Buyers that have built up some equity in their RRSP. How does the program really work? The HBP is essentially treated as a loan you make to yourself. Your RRSP account remains open and you arrange to withdraw the funds without paying any tax. If you have stocks, bonds or mutual funds you will have to sell enough of them to have the desired balance in cash in your RRSP account. Once the funds are […]

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