Property Taxes

Property Assessments have all come out for 2011. The assessed value of a home is it’s value based on taxation and not on market value. An assessment may indicate a home is worth $350,000, however, that does not mean the home will necessarily sell for this amount. A real estate agent or appraisal company should be contacted to advise about the market value of a home. If you own the home you live in, you are eligible for the Home Owner’s Grant which deducts $570 off your annual property tax bill. This grant must be claimed to the municipality; forms and information about claiming the grant are usually released in May or June of each year.

RRSPs and First Time Home Buyers

RRSP contributions are not only important to help secure one’s future but can also help with growth right now! Did you know that first time home buyers can use up to $25,000 from their RRSPs as a contribution to the down payment on their first home TAX FREE!?! This means a couple could access up to $50,000. Once these funds have been accessed they must be paid back within 15 years using yearly contributions. If you would like more information, go to www.cra.gc.ca and search “Home Buyer’s Plan”.

Banks increase fixed rates

While the Bank of Canada keeps the prime rate steady, individual lenders have decided to increase their fixed rates. This week TD, CIBC, RBC and several Credit Unions increased their 5 year rates by 0.25%. This is the first rate increase since the federal government’s announcement that insurance guidelines will tighten effective March 18, 2011. Rates remain competitive and it is expected that the market will see a slight incline through to mid-March as eager first time home buyers take advantage of 35 year amortizations and low interest rates. Buyers are still able to take advantage of minimal down payments of 5%, and products remain on the market offering buyers the option of zero down payment.

We Pay the Legal

Interest rates are extremely low, lenders are eager to lend, the market is heating up and we are offering you FREE legal services if you refinance an insured mortgage with the Jamie Moi Mortgage Team. Why not take advantage of your home equity while you can and refinance into a wonderful low interest rate to consolidate debts or pay for home renovations. Before March 18th, 2011, CMHC (the Canadian Mortgage and Housing Corporation) will allow mortgage refinances to 90% of the value of the home. If you refinance your insured mortgage, we will pay the legal costs! Call us to find out how!

New Mortgage Rules – What do they mean for you?

The Federal Government has spoken and decided that Canadians carry too much personal debt. As a result, they have mandated certain changes to CHMC (Canadian Mortgage and Housing Company) insurance. If you own a home or are looking to buy a new home, these changes may affect you. Here’s how…

If you are looking to buy a home you can still put just 5% down payment (in fact, with some lenders you can even put zero down) however, the longest amortization available through CMHC will be reduced from 35 years to 30 as of March 18th, 2011. What this means is that if you were looking to qualify for financing using a 35 year amortization, your purchasing power may be cut back using the new 30 year maximum amortization. Be sure to check with your mortgage broker about how to be pre-qualified and if these changes will affect you.

If you currently own a home and are considering refinancing your mortgage to consolidate debt, pay for renovations or get a better rate, the rules have changed on how much you can borrow. Until March 18th, 2011, clients are able to borrow up to 90% of the value of their home. With the new CMHC rules, a refinance can only go to 85% of the home’s value. What this means is that home equity will not be as accessible as it has been in the past.