Although you don’t need to provide documents during the pre-approval process, you will eventually need to confirm the information on your application. The exact documents required vary from lender to lender, but there are a few that you can expect to provide each time. Mortgage Commitment: The mortgage commitment is the contract that the lender provides. It includes all the conditions required from you…
The Home Buyers' Plan (HBP) is a first time home buyer program that allows you to withdraw up to $25,000 from your RRSP for a down payment. Conditions for participating in the HBP Only the individual who is entitled to receive payments from the RRSP can withdraw funds from an RRSP. You can make withdrawals from more than one RRSP as long as you are the…
Home Owner Grant: The basic grant can reduce your property tax by as much as $570 per year. To be eligible for the grant, you must meet the following criteria: 1. You are a Canadian citizen or landed immigrant and ordinarily reside in British Columbia. 2. You are the registered owner or eligible occupant of the home. The home must be located within the province. 3.…
This is a big benefit for first time home buyers. When purchasing real estate in BC, you must pay a property transfer tax of 1% of the 1st $200,000 plus 2% of the remaining amount. This Provincial Tax is due every time a property in B.C. changes hands. The Lawyer will collect the tax on closing and pay it to the Government. The First Time Home…
When you are buying a house, you will need to have additional funds set aside for closing costs. These costs can add up to a substantial amount. The following is a list of the most common costs, with an indication of their price. APPRAISAL $150 - $250 Lending institutions usually require an appraisal to be done to confirm the property value, and to make…
Depending on the lender, you will have a variety of prepayment options available to you. Using these options is a great way to reduce the principal on your mortgage and save money. Check with your mortgage broker to see which ones are available to you. Here are some of the standard prepayment options: Anniversary Lump Sum: Every year, on the anniversary of your mortgage, you…
There are a few really important reasons why should you use a broker instead of a bank. A good mortgage broker knows all the lenders in BC and their list of products to ensure that you get the best mortgage for your situation... Read more
The new mortgage rules came into effect in early July. Basically the government is taking extra precautions on mortgage financing to make sure Canadian borrowers are not over extending. Now that the dust has settled, let's take a look at some of the changes. They are fairly straight forward, but here are the main differences. New Mortgage Rules 2012 1. Borrowers will only be able…
UPDATE: This credit is no longer available effective April 1 2013 The government is in the process of introducing a new incentive for first time home buyers. This is a major benefit that's only available on new properties (or properties where HST is charged) . THE B.C. FIRST-TIME NEW HOME BUYERS’ BONUS Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable…
One of the questions I get asked frequently is whether to choose a fixed product or a variable product. Which route to take ultimately depends on the borrower's preferences. The widely quoted number is that 77% of the time, variable borrowers end up paying less. But that means that 23% of the time, they pay more. And based on today’s circumstances, that could definitely be…
