Legalized Marijuana and the Canadian Housing Market

General Rayna Boychuk 26 Oct

Agree with it or not… Canada made it happen. Oh Canada! So now how does legal pot pertain to our housing market. Some good points below

Legalized Marijuana and the Canadian Housing Market

October 17th will be an important day in Canada’s social history. It’s the day when we are going to have legalized marijuana across the country. We will be the second major country in the world to do this. How does this affect mortgage brokers like myself? When someone comes to me to obtain financing for a home purchase and the sellers have disclosed that they smoked pot in the house or grew a few plants , how will this affect their home purchase?

A few years ago, someone disclosed that their home had been a grow-op six years previously and their home insurance company cancelled their policy citing safety issues. I could see this happening with both lenders and mortgage default insurers like CMHC, Genworth and Canada Guaranty. A recent article by a member of the Canadian Real Estate Association suggested that both lenders and insurers might ask for a complete home inspection. It was suggested that sellers who have grown a few plants might want to get a head of a problem and have an inspection before they list the property. If there are any issues of mold or electrical systems that are not up to code, they can remedy this and have a quick sale.

I contacted both CMHC and Genworth Canada to find out if any policy changes are in the works. CMHC told me that there’s nothing planned beyond what is already on the books. If there’s been a grow operation it needs to be inspected and remediation done before they will insure. Genworth says that nothing has been announced as of yet. Any changes will result in an official announcement to all brokers.
Mortgage brokers may want to call their realtor referral partners and discuss this with them to see if local real estate authorities have any changes planned. If nothing else it will be good to touch base with your realtors to find out how the market is in your area.

If you are thinking about smoking pot in your home or want to grow a few plants , contact your local Dominion Lending Centres mortgage professional first to find out if this could affect your house value or sale in the future.

David Cooke

David Cooke

Dominion Lending Centres – Accredited Mortgage Professional

7 things every self-employed individual should know — Before you apply for a mortgage

General Rayna Boychuk 26 Oct

CMHC recently made some positive changes to help self employed consumers get into the mortgage game. My colleague below gives some more great tips

7 things every self-employed individual should know — Before you apply for a mortgage

Self-employed individuals are quickly becoming one of the most common clients that we handle. Daily we have successful business owners come into our offices who enjoy the perks of being an entrepreneur. One of these includes fantastic write-offs that allow them to bring their income down to a low tax bracket.

However, this benefit can also mean that the same business owner may have a hard time qualifying for a mortgage all because their income is significantly reduced on paper… how frustrating ‘eh? But these savvy business owners know that there is advanced planning that is involved in being able to qualify for conventional financing. Back in 2015, Statistics Canada reported that there were about 2.7 million people self-employed in Canada… which is an astounding 14% of the total population of Canada! What does that stat mean? Two things:

1. That being self-employed is a more than viable way of earning income in today’s world.
2. That 14% may not fit into the conventional lending “box”

The Conventional Lending Box
To fit into this box, self-employed individuals must meet certain qualifications. For example, they must be able to provide:
>Two most recent years of personal tax returns
>Two most current years Notice of Assessments
>Two most current years financial statements
>Statement of Bank Account Activity
>Investment Income Statement
>Photo ID

Now, the one area that raises a red flag in the above is the tax returns. As we previously mentioned, their income claimed on the return itself might be significantly different than their actual income. Tax deductions related to business often reflect meals, rental spaces, credit card interest etc. The result is that the income the self-employed business owner shows on their tax return is a significantly lower figure than what their actual take home pay is. However, the conventional lending box requires income to justify the mortgage. So how do we pull this off?

The Unconventional Lending Box
Now please keep in mind that “unconventional” in this box just means that as a self-employed individua,l you are going to work with a Mortgage Broker to find an alternative to allow you to show that you can justify the mortgage. There are several well-known and consistently used pieces of advice that we would like to pass along to you:

1. If you are organized and planning (think 2 years out) you can plan to write off fewer expenses in the two years leading up to the property purchase. Yes, you will pay more personal taxes. However, your income will be higher, and it will be easier to qualify you for the mortgage amount you are seeking.
2. Set up your finances through a certified accountant. Many lenders want to see self-employed income submitted through a professional rather than doing it yourself. The truth is that the time you spend doing your own taxes will not be nearly as efficient both financially and time-wise as a professional. Make sure that you discuss with them what your goals are so that they can set up your taxes properly for you!
3. Choose your timing carefully. If you are leaving for an extended holiday within the two years before purchasing, your two-year average income may fluctuate. Plan your vacations and extended trips away with income in mind.
4. Consider using Stated Income. You have the option to state your income. This is based on you being in the same profession for 2+ years before being self-employed. The lender looks at the industry and researches the mean income of someone in that profession and with your experience. You will be required to provide additional documents such as bank statements, showing consistent deposits and other documentation may be asked of you to show your income.
5. Avoid Bankruptcy at all cost…. or if you do declare bankruptcy have all your discharge papers on hand to present to the lender and ensure you have two years of re-established your credit.
6. Mortgage Brokers can state income with lenders at the best discounted rates. But if you do not qualify with A lenders using stated income, then a broker will work with you to utilize a B Lender who are more lenient but may come with higher interest rates and applicable lending and broker fees.
7. Last but not least, if A or B lenders don’t fit, private financing can be looked at as an alternative option in order to get you into the market and offer a short-term solution to improve credit or top up your reporting income. Then you and your broker can refinance into an A or B lender at that time. Just keep in mind that private lending will have a higher rate associated with it , with lender and broker fees added on as well, if you choose to go with this option.

So, to all of our self-employed, hard-working, determined individuals, take heart! You can qualify for the mortgage you want, it just takes a little more planning to get everything in order. Keep in mind to that every lender has different guidelines as to how they view self-employment. Working with a Dominion Lending Centres broker leading up to your property purchase can help you ensure you get the mortgage you want.

Geoff Lee

Geoff Lee

Dominion Lending Centres – Accredited Mortgage Professional

Are you behind on your CRA Taxes?

General Rayna Boychuk 26 Oct

Yes we are getting close to that time again…. no not Christmas or Halloween …. but tax time. Some good tips from my DLC friend below. Good share

Are you behind on your CRA Taxes?

Nothing weighs heavy on one’s shoulders than owning a home and getting behind on your Canada Revenue taxes. Most banks will not be able to help you refinance your home to pay them off as CRA has first dibs on your house and assets. We have clients owing anywhere from $5,000- $300,000 in back taxes and have threatening letters from CRA that would keep anyone up at night.

There are options and strategies we can assist with financing your CRA debts:

1: We use alternative lenders that charge higher fees/rates for a 1-year term

2: Short term 2nd mortgage to pay off your CRA debts and then refinance back with your lender.

Find out who we can help with a no-obligation application. Let a Dominion Lending Centres mortgage professional get you back on track!

Some CRA notes on penalties for filing late:

The first time you file late you’ll pay:

  • a late-filing penalty –5% of the amount of tax you owe, plus 1% for every month that your return is late, for up to 12 months. That adds up to a maximum of 17% of the tax you owe.
  • interest – at the prescribed interest rate on the amount you owe, beginning on May 1. You’ll also be charged interest on any late-filing penalties. Interest is compounded daily, not monthly or annually. The prescribed interest rate can change every 3 months.
  • If you miss the deadline again, the late-filing penalties are doubled. For example, if the CRA charged you late-filing penalties for any of the 3 previous years, you would pay a penalty of up to 50% made up of 10% of the taxes you owe, plus 2% of the taxes you owe for each full month that your return is late, to a maximum of 20 months.

Kiki Berg

Dominion Lending Centres – Accredited Mortgage Professional

Poloz Rate Hike Had A Hawkish Tone

General Rayna Boychuk 26 Oct

From our very own on staff Economist, see her take on the rate raise that just happened

Poloz Rate Hike Had A Hawkish Tone

As was universally expected, the Bank of Canada’s Governing Council hiked overnight rates this morning by 25 basis points taking the benchmark yield to 1-3/4%. This marked the fifth rate increase since the current tightening phase began in July 2017 (see chart below). The central bank stated it would return the overnight rate to a neutral stance, dropping the word ‘gradually’ that was used to describe the upward progression in yields since this process began. Market watchers will certainly note this omission. For the first time in years, the Bank has acknowledged it expects to remove monetary stimulus from the economy entirely.

So what is the neutral overnight rate? According to today’s Monetary Policy Report (MPR), “the neutral nominal policy rate is defined as the real rate consistent with output sustainably at its potential level and inflation equal to target, on an ongoing basis, plus 2% for the inflation target. It is a medium- to long-term equilibrium concept.” For Canada, the neutral rate is estimated to be between 2.5% and 3.5%, which implies that at a minimum, three more 25 basis point rate hikes are likely over the next year or so.

The Bank of Canada emphasized that the global economic outlook remains solid and that the U.S. economy is particularly robust, but is expected to moderate as U.S.-China trade tensions weigh on growth and commodity prices. The new U.S.-Mexico-Canada Agreement (USMCA) eliminated a good deal of uncertainty for Canadian exports, which will reignite business confidence and investment. Business investment and exports have been of concern in recent quarters, and the Bank is now looking towards a resurgence in these sectors, augmented by the recently-approved liquid natural gas project in British Columbia.

A continuing concern, however, is the decline in Canadian oil prices. Western Canada Select (WCS), a local blend that represents about half of Canada’s crude oil exports, has declined about 60% since July as global oil prices have risen (see chart below). WCS plunged below US$20 a barrel last week posting the biggest discount to West Texas Intermediate (WTI) on record in Bloomberg data back to 2008. WCS generally tracks heavy oil from Canada, which typically trades at a discount to WTI because of quality issues as well as the cost of transport from Alberta to the refineries in the U.S.

Canadian pipelines are already filled to the brim. The inability of the Canadian oil industry to build a major pipeline from Alberta to either the U.S. or the Pacific Ocean is increasingly dragging down domestic oil prices. Oil-by-rail shipments to the U.S. are at an all-time high, but this is an expensive and potentially unsafe option and precludes Canadian oil exports to China and Japan.


An even broader concern is the impact of higher interest rates on debt-laden consumers. The Bank is well aware of the risks, as the MPR cited that “consumption is projected to grow at a healthy pace, although the pace of spending gradually slows in response to rising interest rates… Higher mortgage rates and the changes to mortgage guidelines are affecting the dynamics of housing activity. Housing resales responded quickly to the new mortgage guidelines, and the level of resale activity is expected to continue on a lower trajectory than before the changes. New home construction is shifting toward smaller units, although stronger population growth is estimated to raise fundamental demand for housing.”

Household credit growth has slowed, and the share of new mortgages with high loan-to-income ratios has fallen. The ratio of household debt to income has levelled off and is expected to edge downward (see chart below).


Low-ratio mortgage originations declined by about 15% in the second quarter of 2018 relative to the same quarter in 2017 (see charts below). The MPR shows that “while activity fell for all categories of borrowers, the drop was more pronounced for those with a loan-to-income ratio above 450%, leading to a decline in the number of new highly indebted households”.

Bottom Line: The Bank of Canada believes the economy will grow about 2% per year in 2018, 2019 and 2020, in line with their upwardly revised estimate of potential growth of 1.9%. The Bank asserts that mortgage tightening measures of the past two years have “reduced household vulnerabilities,” although the “sheer size of the outstanding debt means that vulnerability will persist for some time”. That is Bank of Canada doublespeak. What it means is expect three more rate hikes by the end of next year.

Dr. Sherry Cooper

Dr. Sherry Cooper

Chief Economist, Dominion Lending Centres
Sherry is an award-winning authority on finance and economics with over 30 years of bringing economic insights and clarity to Canadians.

Rates On The Rise Both Variable & Fixed

General Rayna Boychuk 26 Oct

Rates have gone up so …. DLC has your back and always will give you great advice during rising or falling rates. Check out Angela below with some good points I wanted to share

Rates On The Rise Both Variable & Fixed

With the Bank of Canada in a mood to raise rates, it’s a similar feeling for the bond market, which impacts fixed rates. In every interest-rate market there are many factors leading to an increase and we are hoping to provide a little bit of clarity on what is happening and what it means to you and your loved ones. We tell you this in advance to be proactive to take care of you, as our mortgage family, so as you hear the news about the changes you have comfort we are here to lead with clarity.

At this time, we see fixed rates increasing as the bond market increases.

Why do we note this information and how does it relate to you?

If you are in a variable rate, you will want to:

  1. Review your lock-in options by contacting us or your lender directly (every lender has different policies in allowing us to help or not). Knowing it’s unlikely the prime rate will reduce and fixed rates are on the rise, there could be a sweet spot to review your options now.
  2. If you decide not to lock in, it’s time to review your discount to see if a higher one can be obtained elsewhere.

Locking in won’t be for everyone, especially if you are making higher payments and your mortgage is below $300,000, which most people fit and will continue on that path. Also if your discount is more than .6 below prime you may want to wait and watch the market. Locking in will be around a 1% higher rate than you are likely presently paying. If knowing you can likely lock in around 4% now is most attractive to you, this may be your time.

If you are in a fixed rate:

  1. If you obtained your mortgage in the last year, stay put.
  2.  If you are looking to move up the property ladder or consolidate debt, get your application in to us ASAP so we can hold options for up to 120 days.
  3. If you are up for renewal this year or know someone who is, secure your options now with us to weight out the savings prior to renewal with us keeping a watchful eye on the market.

Keep in mind that if you or someone you care about has an average mortgage of $350,000 and got it a few years ago at 2.49% now a qualified applicant can expect about 3.89% which is a payment increase of $254 dollars a month, so increasing your payment now will protect your equity, and you from future payment shock.

Please reach out to a Dominion Lending Centres mortgage professional so we can help ensure you or a loved is on the right path in our ever changing market.

Angela Calla

Angela Calla

Dominion Lending Centres – Accredited Mortgage Professional

7 Tips for Buying Your First Home

General Rayna Boychuk 26 Oct

Great advise from my colleague Kelly …. having done hundreds of purchase mortgages and working closely with many realtors, this is a must read

7 Tips for Buying Your First Home

As a licensed Mortgage Broker, I am often asked “what do I need to know when buying my first home?”
Everyone has their own aims and objects when buying their first home. As a Mortgage Broker, I specialize in making sure your financing is in order to facilitate your dreams of owning a home.

Buying your first home is very exciting, but it can easily be overwhelming. Being prepared is the first step. The decision to purchase your first home can be a huge, life-changing event and you need to know exactly what you are getting into.

To get you prepared with the knowledge you need, here are my 7 tips to consider when you buy your first home: (Some of these may only relate to B.C.)

1. Strengthen your credit rating.

It’s pretty simple: the higher your credit score, the lower your mortgage rate will be.

Spend the time now to improve your credit. Check your credit report. Many credit reports have errors, so you need to ensure that your credit bureau is current and correct.

ALWAYS pay every single one of your bills on time. Set up automatic payments if you have had any late payments over the last couple of years.

Stop applying for any new credit a year before you are considering buying and continue until you sign the closing papers on your home. Spend only 30% of credit limits on credit cards.

2. Find a Mortgage Broker and figure out how much you can afford to spend.

The home buyer’s mantra: Get a home that’s financially comfortable.

Contact a Dominion Lending Centres Mortgage Professional. We work with you up to a year in advance to analyze your situation, and tell you how much mortgage and monthly payments you can afford.

Lenders like to see that you spend a maximum:

  1. 32-39% of your Gross income on mortgage payments, maintenance fees (if applicable), heat & property taxes
  2. 38-44% of your Gross Income on all debts
    Including #1 above PLUS loans, credit cards, additional financing etc.

1 year+ prior to going home shopping, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities). Then bank the difference between the home payments and what you’re paying now. Not only will that simulate ownership, it also helps you save for your down payment!

When you are ready to start shopping for your home, as your Mortgage Broker, I gather all your financial documentation that the lender requires, in order to figure out much you can afford to spend. Then I work with you to get a pre-approval and lock in a low interest rate to protect you in case rates rise between now and the time you by your new home.

3. How long will you live in your new home?

The transaction costs of buying and selling a house are substantial including: real estate fees, legal fees, Property Transfer Tax, selling in a down market, moving, etc.

If you don’t plan to live in your new home for at least 3-5 years, you may not gain enough equity to make selling worthwhile.

Short-term home ownership can be a pretty expensive proposition. If that is the case, holding off on purchasing could be your best option.

4. How much house you need?

Buying a cheaper, smaller home might sound like a good place to start, but could end up costing you more if you need to move due to changes in your lifestyle, including a growing family. Then again, buying more house than you currently need will cost you more with higher mortgage payments, higher maintenance, energy and tax costs.

Prioritize your housing wish list. They say that the 3 most important things to think about when buying are home are location, location, location. In Greater Vancouver your first choice for location i.e. Kitsilano or Yaletown may not be within your means. You also need to think about how the new home space will be used and whether it will fit your lifestyle now and in the future.

5. Build a savings account.

Start now to build a healthy savings account. To avoid paying CMHC Mortgage Default Insurance you need to prove you have a 20% down payment.

Building your savings account, over and above the money you will require for the down payment and closing costs. Lenders want to see that you’re not living paycheck to paycheck. If you have three to five months’ worth of mortgage payments in your savings, that makes you a much better loan candidate.

6. Remember closing costs.

While you’re saving your down payment, you need to save for closing costs too. They’re typically 1% to 3% of the purchase price and due on the completion date.

In B.C. you need to also pay Property Transfer Tax (PPT). The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged at a rate of 1% for the first $200,000 and 2% for the portion of the fair market value that is greater than $200,000. 3% on the portion over $2,000,000 and if the property is residential, a further 2% on the portion greater than $3,000,000

7. Shop for a Realtor that has your best interests in mind.

Interview at least three Realtors. Get referrals from people you trust who have recently bought or sold, including me, your mortgage broker. I work with a lot of realtors, some of whom are outstanding in their field. Once you’ve decided which Realtor is the best fit for you, they can help you focus your search to find your perfect home. There is no cost for the Realtor for the home buyer since the home seller pays the commission.

Besides the 7 tips I’ve listed above, there are many other things you should need to be aware of prior to buying your first home.

Mortgages are complicated… BUT they don’t have to be! Engage an expert!

Kelly Hudson

Kelly Hudson

Dominion Lending Centres – Accredited Mortgage Professional

LIVING THE SIMPLE LIFE

General Rayna Boychuk 13 Feb

LIVING THE SIMPLE LIFE – OUR HOUSE MAGAZINE

Every winter, athletic power couple Ashleigh McIvor and Jay Demerit manage to scale back their busy lives into a 340-square-foot cabin in the woods.

You would think that an Olympic gold medal and a successful pro soccer career would come with an opulent lifestyle, even after retirement from competition. But Canadian freestyle skier Ashleigh MacIvor and former Vancouver Whitecaps captain Jay DeMerit, however, today spend their winters in more austere surroundings.
The couple, along with their two-year-old son, Oakes, shack up in a 340-square-foot cabin nestled in the Coast Mountains near Pemberton, B.C., during the winter months. As MacIvor explains to Our House magazine, the idea of major downsizing was both natural and experimental.
“We are so programmed to want so much more than what we need,” she explains. “I’ve always been happiest in the woods or the mountains, with no sign of the built environment, no technology or electronics, just some great company and—typically—my mountain bike.”
She notes that her husband thrives in the high-energy, highly social environment of a big city, but can appreciate both lifestyles. The couple also have an apartment in Vancouver’s Chinatown and a condo in Whistler that is normally rented out. MacIvor says she was interested to see how Jay would adapt to cabin living.
“I think it’s so easy to get bogged down by all of the noise in modern-day society,” she says. “We don’t even take the time standing in line for coffee to reflect on anything going on in our lives, or to dream up ideas for the future. Instead, we get straight to work on our phones. When you get out of the city, you seem to have more time in each day.”
MacIvor, who grew up in nearby Whistler, describes the cabin as the “fort of all forts.” As a teenager and in her early twenties, she spent a lot of time mountain biking in the Pemberton area and always loved riding two trails in particular: Creampuff and Meatgrinder. In the fall of 2008, glancing over to those bike trails from a nearby barn, she fell in love with what would eventually be her neighbours’ house. Shortly thereafter, MacIvor heard that these residents were selling the adjacent 10-acre parcel. She worked out a deal with them and bought the land in 2008.
The 2010 Olympic medalist decided to build the cabin in 2009 because she was having so much trouble finding a place to live in Whistler—landlords were kicking tenants out to renovate and rent for top dollar during the Olympics. Her dad helped with the framing and some friends pitched in with the rest. They used a lot of recycled building materials from renovation projects in Whistler, and then built a huge deck with a fire pit and added a hot tub.


The former Olympian does have some advice for anyone thinking about doing something similar. She notes that the family takes advantage of storage space, including a shipping container in Pemberton and a storage room attached to their Whistler condo that they can access even when it’s rented.
“I don’t think we would have been able to permanently make the move to 340 square feet, and get rid of all the stuff we think we need to live the city life, or even the Whistler life,” MacIvor says.
While the cabin in the woods may be small, it isn’t without a few luxuries, MacIvor points out. It has a full-sized washer and dryer, in-floor heating in the bathroom, granite countertops and, of course, the hot tub. Still, the family has noticed a difference scaling back their lifestyle during their time there.
“We used to eat out all the time. Like, three meals a day, often. When you live in a cabin in the woods, or even just in a small town, you exhaust your dine-out options pretty quickly and inevitably learn to love cooking at home. And let’s face it, there is probably a lot of extra fat and sugar going into most restaurant dishes,” MacIvor says. “We both felt so much healthier after a few weeks of home-cooked meals and yummy juices/smoothies. And eating out is expensive—albeit less so when you’re a sober, pregnant or breastfeeding woman. It was a good lesson in just how little we could spend, given the chance to remove ourselves from the city life. It’s funny though, when it comes to essentialism, the way I see it, we should all spend less so we can work less.”

Life after Competition

The retired life is anything but for athletes Ashleigh MacIvor and Jay Demerit. Since leaving the pitch in 2014, Demerit has launched a handcrafted stereo manufacturer called the Portmanteau Stereo Co., while also creating a curriculum and running a soccer-focused yet all-encompassing youth development program called Captains Camps. Meanwhile, MacIvor will be in front of the camera joining CBC’s coverage of the 2018 Olympics in Pyeongchang, South Korea, and as an analyst for the World Cup Skicross season.
And she’s got some pretty big predictions for the ski team this year. “We have the best skicross team in the world,” she says. “I have no doubt that we will bring more medals home in 2018. Unfortunately one of our best hopes, reigning Olympic champion Marielle Thompson, just blew her knee. One of the amazing things about Canada Skicross is just how deep the talent pool is. Every one of our athletes has the ability to win an Olympic medal.”
MacIvor is also still fascinated by the Games and the attention they hold every four years. The four-year interval is part of what draws spectators in, she believes. Viewers instinctively understand that these athletes are competing under the highest-pressure conditions they will ever face, and that their chance to prove themselves is fleeting in their sporting careers, let alone their entire lifespans.
With all of the support that goes into sports programming for each nation focused on increasing the chances of winning more Olympic medals, every taxpaying spectator feels like they have played a role in getting these athletes to the big show, she adds.
“Beyond that, I think that we all recognize the positive impact success on that level will have on our nation’s youth as they watch it all unfold,” she says. There are so many valuable life lessons that can be learned through sport. It’s the greatest metaphor for real life survival and strategies for success and fulfilment.”

JEREMY DEUTSCH

Lead Writer

6 HOME PURCHASE CLOSING COSTS

General Rayna Boychuk 13 Feb

6 HOME PURCHASE CLOSING COSTS

When you purchase your home, there are 6 additional costs to account for. They include:

  • Home Fire and Flood Insurance
  • Title Insurance
  • Legal Fees
  • Adjustments
  • Land Transfer Tax
  • GST

Here’s an overview of what you can expect.

Home and Fire Insurance. Mortgage lenders will require a certificate of fire insurance to be in place by the time you take possession of your home. The amount required is generally at least the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size and extras being insured, as well as the insurance company and the municipality. Home insurance can vary anywhere from $400 per year for condos to $2,000 for large homes.

Title Insurance. This is a one-time fee of about $150 and it protects you against any issues, defects or fraud on your title. Your lawyer or notary helps you purchase this.

Legal Fees. Thirdly, you are required to pay legal fees. Your lawyer or notary will charge you anywhere from $700 to $1,000 to help with your purchase. There are also fees to register your title with the municipalities. All told, you’re looking at around $1,000 to 1,300, after tax.

Adjustments. An adjustment is a cost to you to pay the seller back for prepaying any property tax or condo fees on your behalf. Simply put, if you take possession in the middle of a month, the seller has already paid for the whole month and you must pay the seller back for what they’re not using.

Land transfer tax. Land transfer tax, or property transfer tax (PTT) as it’s known as in British Columbia, is a fee that is charged to you by the province. First-time home buyers are exempt from this fee if they are purchasing a property under $500,000. All home buyers are exempt if they are purchasing a new property under $750,000.

In British Columbia, the PTT is 1% on the first $200,000 of purchase and 2% thereafter. However, if the property being purchased is over $2,000,000, then it is 3% on any value over $2,000,000.

GST. GST is only paid on new construction purchases. GST is 5% on the purchase price. However, there is a partial GST rebate on properties under $450,000.

Please don’t hesitate to contact a Dominion Lending Centres mortgage professional for your home financing and mortgage needs.

Eitan Pinsky

EITAN PINSKY

Dominion Lending Centres – Accredited Mortgage Professional
Eitan is part of DLC Origin Mortgages based in Vancouver, BC.