29 Mar

THE #1 MISCONCEPTION ABOUT MORTGAGE FINANCING!

General

Posted by: Maria Solverson

It is a reoccurring but common misconception that you will qualify for a mortgage in the future because you have qualified for a mortgage in the past.

This is not accurate!

Do. Not. Assume. Anything.

Even if your financial situation has remained the same or has improved, securing mortgage financing is more difficult now than it has in recent years.
The latest changes to mortgage qualification by the federal government has left Canadians qualifying 20-25% less. On top of that, guidelines that lenders would use in determining your suitability have been replaced with non-negotiable rules and declarations.

As mortgage professionals, we keep up to date with the latest trends going on in the mortgage world by understanding lender products and staying attentive to evolving changes.

From experience, we can tell you that having a plan is crucial to a successful mortgage application. Making assumptions about your qualification or just “winging it” is a recipe for disaster. Here are a few points on why a mortgage broker is a must for the first time home-buyer.

1. We have access to over 40 different lenders, not just one
2. We work for you, not for the lender
3. We will guide you through the application process
4. We save you valuable time by shopping for you
5. We pull your credit once — if you go to multiple banks, you will have multiple credit pulls

If you are thinking about buying a property, please feel free to contact a Dominion Lending Centres mortgage professional where we can help you devise a full-proof plan!

Originally posted by:

CHRIS CABEL

Dominion Lending Centres – Accredited Mortgage Professional
Chris is part of DLC HomeHow Mortgage based in Calgary, AB.

22 Mar

Nuts and Bolts of the Federal 2019 Budget. What you REALLY need to know!

General

Posted by: Maria Solverson

On March 19, the Federal Government announced the official 2019 budget. One major topic on the discussion table was the discussion of affordable housing in Canada. So just what happened on “Budget Day?” Here are the highlights of the 2019 Federal Budget:

MORTGAGE INDUSTRY RELATED:

CMHC First Time Home Buyers Incentive Plan

  • This would give first time home buyers the ability to share the cost of buying a home with CMHC
  • For existing homes – the incentive would provide up to 5% (funding/equity sharing) of the PURCHASE PRICE
  • For newly constructed homes the incentive would provide up to 10% (funding/equity sharing) of the PURCHASE PRICE
  • Funding/Equity sharing means that CMHC would cover a percentage of the purchase price

Example:

  • 400K purchase price, 5% down payment (20K), AND 5% CHMC shared equity mortgage (20K), the size of the insured mortgage would be reduced from 380K down to 360K, which would lower the monthly payment amount for the first time home buyer

To qualify for the program:

  • 120K max household income
  • Cannot borrow more than 4x their annual household income – making max purchase price approx. 505K
  • 100k household income would mean max 400K mortgage in order to use this program.

HOME BUYERS PLAN RRSP INCREASE

An increase of the previous $25,000 for RRSP withdrawal amount through the Home Buyers Plan to $35,000

These were the only two key changes that came out of the Federal Budget (so far). It provides minimal assistance for First Time Home Buyers, especially in a market like Vancouver and the Fraser Valley, who have home prices well above the 505k purchase price limit. However, it could provide assistance to those looking to purchase condos or townhomes ore in more rural areas. One area that will remain the same for the mortgage industry is the continued B-20 stress testing measures (which have recently come under fire)

The predicted start time is Fall 2019 for these guidelines. We will keep you updated on any new additions or changes as the information becomes available. If you have any mortgage related questions, contact a Dominion Lending Centres mortgage professional near you.

 

Originally Published by:

GEOFF LEE

Dominion Lending Centres – Accredited Mortgage Professional
Geoff is part of DLC GLM Mortgage Group based in Vancouver, BC.

1 Mar

First-time home Buyer Tax Credit

General

Posted by: Maria Solverson

***To all my First Time Home Buyers in 2018***

The Home Buyers Tax Credit is a non-refundable credit that allows first-time purchasers of homes to claim a tax refund of up to $750 in the year when they purchase a home.
To claim the credit, enter the amount of $5000 on Schedule 1 line 369 of your tax return. You can divide the credit between your return and your spouse or common-law partner’s return, but the combined total claimed cannot be greater than $5000.
In order to be eligible for the HBTC, you must meet two criteria:

  •  You or your spouse or common-law partner purchased a qualifying home; and
  •  You are a first-time home buyer, which means that you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.

Please talk to your accountant when filing your 2018 Personal Income Tax returns for more details.