NEWSLETTER
July 2010
HST ON REAL ESTATE????
Is there HST on the purchase of a resale property. TRUE OR FALSE?
FALSE!
There is NO HST on the purchase price of a resale home in British Columbia.
Sellers: Previous there was GST of 5% on the real estate commission and now that will be HST of 12%. On a sale of $600,000 with a commission of 7% on the 1st $100,000, 2.5% on the balance and legal fees of $1,000, the difference GST to HST is approx $1,365 increase.
Buyers: Previous there was GST of 5% any real estate commissions paid and now that will be HST of 12%. Usually the commission is paid for by the Seller but not always.
Here's some links we're found to help you wander thru the HST maze
BRITISH COLUMBIA REAL ESTATE ASSOCIATION
HST REBATES
* HST Rebates and Exemptions - How it works
* New House Rebates
* Residential Energy Credit and Rebate Program
February 2009
The Home Renovation Tax Credit - NEW in 2009
Thinking of doing some renovations?
Do you need a permit?
Find out - click here for Delta's permit information
PROPERTY TRANSFER TAX
Property Purchase Tax - rules and exemptions for first time buyers
PROPERTY TAX INFORMATION
Home Owner Grant - applies when paying property taxes annually
Property Tax Deferment Program
Temporary Property Tax Deferment Program - NEW in 2009
October
15, 2008
Go
Green Incentives Are Available
We came across some
great green sites with green information, incentives, rebates
and programs. If you're doing renovations or upgrades,
check these sites out and hopefully you'll get some good ideas
plus save some time and money.
Residential
Retrofits and Renovations
ecoENERGY
Retrofit Grants and Incentives - Homes
This federal program is available to owners of single-family
homes, including detached, semi-detached and low–rise, multi-unit
residential buildings. Property owners can qualify for federal
grants by improving the energy efficiency of their homes and
reducing their home's impact on the environment. The maximum
grant one can receive per home or multi-unit residential building
is $5,000. Retrofit was launched April 1, 2007 and is scheduled
to end March 31, 2011.
LiveSmartBC
- This new, BC-wide three-year, $60 million efficiency
incentive program will help British Columbians reduce their
carbon footprints and their energy costs. The LiveSmartBC:
Efficiency Incentive Program will give homeowners access to
rebates for audits and energy efficiency incentives. Funding for this program runs until March 31, 2011.
BC
HYDRO REBATE PROGRAMS
BC
Hydro Power Smart Windows Rebate
ENERGY STAR® labelled windows are Provincial Sales Tax
exempt and can help you increase comfort and reduce your heating
bill, which can account for more than half of your home's
energy bill. Up to one-third of the heat from your home can
escape through windows.
BC
Hydro Fridge Buy-Back Program
BC Hydro will pickup and recycle your old, inefficient second
fridge and give you $30 for it.
BC
Hydro Power Smart Appliance Rebate Program
Mail-in rebates on the purchase of new ENERGY STAR clothes
washers, refrigerators and freezers between January 15 and
December 31, 2008.
Teresan
Gas Energy Star Heating System Upgrade offer
Water
Meter Program – Surrey
Encourages voluntary installation of water meters to promote
water conservation. The program pays for meter installation.
Natural
Resources Canada - Office of Energy Efficiency -
Grants and Programs
New
Residential Construction
Power
Smart New Home Program
The most cost-effective way to save energy in the home is
to build with an energy-efficient design. BC Hydro may provide
builders who build to EnerGuide
for New Houses standards: financial incentives when available
and where appropriate; promotional opportunities and funding;
and Power Smart branding for the home.
BC
Hydro Power Smart Windows Rebate
Canadian
Mortgage and Housing Corporation (CMHC): Energy Efficient
Mortgage Loan
Insurance
Refund
City
of Vancouver Water Saver Kits
Visit
Metro Vancouver's BUILDSMART
site for incentives related to these categories:
- commercial, institutional and industrial new construction
- municipal or federal new construction
- commercial, institutional and industrial retrofits and
renovations
- municipal or federal retrofits and renovations
- non-profits and charitable organizations new and retrofits
July
10, 2008
The
Department of Finance yesterday announced that it would change
some of the rules for high-ratio mortgages, and that “these
requirements will apply to all government-backed mortgage
insurance policies (whether issued by CMHC or private insurers)
for high-ratio mortgages on residential properties with up
to four units.”
Here
are some highlights of the changes:
1. Maximum amortization reduced to 35 years
for new government-backed mortgages.
2. Minimum 5% down payment for new government-backed
mortgages. Borrowers may borrow their 5% down payment, but
it will not be insured under the new guarantee framework.
3. New credit score floor of 620 for new
government-backed mortgages. There will also be limited exceptions
to this rule, recognizing that there are some borrowers with
credit scores below 620 that otherwise represent a low credit
risk.
4. Minimum loan documentation standards “to
ensure that there is evidence of reasonableness of property
value and of the borrower’s sources and level of income.”
The Department of Finance’s announcements today did
not elaborate on this point.
5. No government guarantee for high-ratio mortgages
where no amortization is required in the first few years.
This includes high-ratio mortgages that begin with “interest-only”
payments and HELOCs.
6. Maximum of 45% on borrowers’ TDS ratio
for new government-backed mortgages.
These changes are slated to take effect on October
15, 2008. There is still a
limited time for clients to obtain the zero down or 40-year
products, if they so choose. Current 90 day pre-approvals
would not be affected. Exceptions would be allowed
after October 15th where they are needed to satisfy a binding
purchase and sale, financing, or refinancing agreement entered
into before October 15, 2008. Canadians who already hold mortgages
will not be affected by these changes.
The Department of Finance stated that “today's announcement
marks a responsible and measured approach by the government
to ensure Canada's housing market remains strong and to reduce
the risk of a U.S.-style housing bubble developing in Canada.”
It also noted that mortgage arrears in Canada have remained
low in recent years.
Shawn Kusch, AMP
Senior Mortgage Consultant - INVIS
www.shawnkusch.com
Tel: 604-598-9973
Fax: 604-598-9982
"low mortgage rates are just the beginning..."
May
2007
There
is now a
Tree Cutting Regulation Bylaw
in Delta
In December of 2006,
Delta Council adopted a bylaw requiring permits to cut trees
in Delta. The purpose of this bylaw is to regulate the cutting
and replacement of trees through a permit process. This bylaw
requires a level of protection and replanting requirements
that will help ensure the urban forest is preserved and maintained.
Before cutting a tree, property owners are advised to review
the permit requirements and exemptions. Details
»
Conventional
financing now available up to 80%
In the past in order for clients to avoid having to pay a
CMHC/Genworth insurance premium for their mortgage financing
they were required to put down at least 25% of the purchase
price towards the down payment. Now with the recent changes
in policies clients are only required to put down 20% of the
purchase price for down payment in order to avoid paying any
insurance premiums which will end up saving them money.
Amortization extension up to 40 years
Previously the maximum term a mortgage could be amortized
over when determining mortgage payments was 25 years. However,
recognizing that housing prices are continuing to increase...in
an effort to make properties affordable for clients to purchase
into the lenders have now supported amortization extensions
up to as high as 40 years. By extending the amortization will
lower a clients monthly payment obligation and therefore even
though the property values have increased, with the extension
of the amortization this will allow clients to be able to
afford that property and won't have to settle for a property
of lesser value or be forced to consider moving away from
the lower mainland.
An example would be if a client qualified for a $300,000 mortgage
based on a 25 year amortization...when extending the amortization
to 40 years the client will now qualify for a mortgage as
high as $361,000. On the flip side a payment for a $300,000
mortgage based on a 25 year amortization would be approx.
$1,787.75 however by extending the amortization to 40 years
the monthly payment on the same $300,000 borrowed would drop
to $1,485.24 per month...a difference of $302.51 per month.
If you require additional information please feel free to
contact me anytime!
Shawn Kusch, AMP
Senior Mortgage Consultant - INVIS
www.shawnkusch.com
Tel: 604-598-9973
Fax: 604-598-9982
"low mortgage rates are just the beginning..."
Trisha
Calam joins FinerChoice Team!
Darrell
& Sharon are excited to
announce that Trisha Calam, licensed Realtor
has joined our FinerChoice Team.
Trisha has been a Realtor for several years.
She has assisted us with a number of buyers since joining
Re/max Performance a year ago and we're happy to have her
on our team! She and her family live in Surrey and she
is involved in many aspects of the community including her
current position as President of the Surrey/White Rock Ringette
Association. She will be focusing on working
with Buyers in North Delta, Surrey, Cloverdale and White Rock.
We know that she will be a valuable asset to our team and
to your moving experience!
CMHC's
Flex Down Product
Released February 2004!
[Click on links below to access]
Flex
Down Background
Flex
Down Fact Sheet
Click
Here for the Fraser Valley Market Report and Statistics. |
