News

Can’t prove income? If you have good credit, and don’t owe Revenue Canada, you can get great low rates if you have 10% down. Conditions are a bit tougher now, so each application is rated on an individual basis. If you can prove income, you may qualify with 5% down.

BUYING FORECLOSURES: 

Court Ordered Foreclosures are almost the opposite to a regular sale in BC. Usually the lender takes possession on behalf of the court, but does not take title. You must buy with no subjects, "as is", not on the day you look at the property (if you are fortunate to see the interior at all), but the day you take possession. It could be trashed as the pictures don't always show the damage. 

Bank Owned foreclosures are close to a normal sale or a mix of a court ordered sale and a regular sale.  If the property has been completely taken over by the lender including the title, it may be like a regular sale and subject to usual real estate rules. Often the lender takes over the property but doesn't take title in which case the sale is subject to court approval. Sometimes the lender takes over the property, and takes title at, or just before the court hearing. So you need to know the exact legal process involved to protect your rights. Lenders typically take title to the property when there is no hope of recovering any shortfall. 

Common mistakes:

1) Not knowing all the steps involved and losing out on a good deal by not being pre-approved

2) Buying a Bank owned property and thinking it's a court ordered sale

3) Paying too much at the court hearing by getting into a bidding war

4) Under- estimating the renovation costs and the time it takes to complete the renos

Contact us and we will give you our usual free advice. 

Facing Foreclosure or legal action

If you are facing Foreclosure, don’t go it alone. We can help you get to know your rights, and we can help you in dealing with the lender, or their lawyers. If it looks like there will be a shortfall, don't despair, most lenders want to work with you to make a sale happen, rather than face a larger deficit later. Don’t assume there is no hope, and don’t believe everything anyone tells you. Give us a call and let’s talk.

 

Refer To Our Mortgage and Real Estate Glossary!

Know what an “Acceleration Clause” is? Mortgage and Real Estate lingo can be hard to understand. We have supplied a glossary to help you do just that. If you are still unsure, send The BC Mortgage Guy a note and you will get the proper answer sent to your e-mail!

Click here to view our glossary.

This free service is simple to use and can answer any questions about financing your home or getting a loan. Ask me a question and you will get a quick e -mail response from a real person. The BC Mortgage Guy can make your experience simple and stress free. Email: rob@simhouse.ca

 

 First Time Buyer - News

* Dec 15th, 2016 - BC Gov't helps Fist Time Home Buyers with a down payment loan

The BC Government introduced a 2nd mortgage loan for First Time Buyers up to $37500 or 5% of the purchase price of an owner occupied home with a maximum price of $750k. Program applications start Jan 16th, 2017, Funds available Feb 15th, 2017 to Mar 31st, 2020. No repayment for 5yrs, payments start in the 6th year. Maximum amortization 25yrs. 

Must be a Canadian Citizen or permant resident of Canada for 5yrs, and have lived in BC for a year. Combined family income must be less than $150k. Buyer must qualify for a federal insured mortgage with CMHC or Genworth.            

 * FIRST TIME BUYER - RRSP Down Payment

  • Applicants have not owned a principal residence in the past 5yrs (rental properties excluded)
  • You must live in the property for at least a year
  • Each applicant can withdraw up to $25,000.00
  • Funds not restricted to down payment, may be used as part of closing costs, or any other purpose - anything at all - like buying a boat or a car, instead of paying it down on the mortgage
  • RRSP MUST have been invested for more than 90 days before you withdraw it, to qualify.
  • If you enter into an agreement to buy a home before the 90 days is up, then you must make sure the completion date is no more than 30 days before your RRSP is withdrawn. 
  • Repayment (to yourself - your RRSP account) is over a maximum of 15yrs (no interest). You can pay it back quicker -even a lump sum, anytime. On $25k, minmum payments are $1666.66 P/A or $138.88 per month. If you don't pay back the minimum to your RRSP in any year, then you have to report the unpaid balance of the annual amount due each year to CRA as income.  

* GENERAL FIRST TIME BUYER RULES

  • Applicants have not owned a principal residence anywhere in the world.
  • Maximum purchase price in Lower Mainland on an existing home is $475,000 (pro-rated up to $500k).
  • On a newly built home the maximum purchase price is $750,000(pro-rated up to $800k)
  • Otherwise you pay the BC Gov’t a property transfer tax on an existing home based on 1% of the 1st $200k, and 2% of balance of the purchase price up to $2mil. Then 3% on the balance over $2mil. 
  • May qualify for 50% reduction in tax if one of the joint applicants is a first time buyer
  • Canadian citizen and resident of BC for one year
  • Must be your principal residence for one year

* Feb 16, 2016 New Property Transfer Tax Changes

* Newly Built Homes up to $750k 

All BC Permanent Resident Canadian citizens (including First Time Buyers) may qualify for an exemption up to $13k to the Provincial Property Transfer Tax on the purchase of a newly built BC principal residence up to $750k. The exemption is adjusted downward between $750 and $800k. 

All homes over $2milion are now taxed at 3% on the purchase balance over $2mil. 

No change on Homes under $2mil - The tax is charged at 1% on the first $200k and 2% on the balance. 

 * Helpful Tips for the First Time Home Buyer

Buying a house is a good investment!

* No Capital Gains

A house is a solid investment that is difficult to match. Why? Any capital gains that accrue and are

realized on the sale of a principal residence are tax free — your money, 100%!

* Why Rent? 

At todays low rates almost half of your mortgage payment goes to principal. So every time you make a $1500 mortgage payment about $750 goes to principal. It's like putting $750 into your bank account each month. The net cost is $750 a month plus property taxes, and/or strata. So can you really afford to rent?

*5% Down

You do not need the full purchase price to own a home. Whether you are a first timer or repeat buyer you may qualify for as little as 5% down payment to purchase or in some cases zero down. This is a great way to leverage your investments and increase the quality of your life at the same time.

* Let us Help You

The BC Mortgage Guy can get you started the right way in your real estate venture, by finding great rates with good lenders, and he will follow through with excellent service, long after you have moved in.

 

 

 


There is no cost or fees involved for pre-qualification, so click on the link and let’s get moving!

call Rob at : 604-897-0930 email: rob@simhouse.ca

This is only a guide. For accurate information on a given situation, please check with our web site, and other professionals, including an Accountant, Lawyer, Notary, Realtor, or Canada Customs & Revenue Agency. Call us with any questions.