first time home buyer

Rates rise for the 3rd time in a month

RBC led the way again today, announcing another rate increase of 0.15% across the board. This is the 3rd rate increase in a month and now totals over one full percentage point on many terms.

Expect all other lenders to follow in the next few days. If you are in the market to buy, renew, or refinance it is now more important to book a rate more than ever. A month ago, many qualified clients were able to get a 5 year fixed rate term around the 3.69% mark. Today, it is around 4.50% and with this latest increase it will be even higher once all the changes take place.

These rate increases, along with the recent mortgage rule changes, is quickly eroding the amounts that borrowers are able to get.

Is this effecting you? Changing your mind about buying?

Comments and feedback are welcome.

Wayne Mah, Senior Mortgage Planner, The Mortgage Centre 604.880.1899 / mah.w@mortgagecentre.com

first time home buyer

First Time Home Buyer Property Transfer Tax (PTT) Exemption

What is Property Transfer Tax (PTT)? For those of you who don’t know, it’s a tax that is payable to the provincial government when acquiring an interest in or purchasing a property, and this is assumed by the buyer. Many first time home buyers are aware but not clear on their rights towards their property transfer tax exemption with their first real estate purchase. I get asked this question on a regular basis, especially from US and US/CDN dual citizens. As a first time home buyer you may qualify for an exemption in you property transfer tax. To qualify you must meet all of the following criteria:

1) Must be a Canadian Citizen or Permanent Canadian Resident.
2) Must have resided in British Columbia for the past year, and at least 2 of the last 6 taxable years.
3) Must have never held title to property anywhere internationally at any given time.
4) Must not have applied for the property transfer tax exemption previously.
5) To obtain full exemption, the purchase price must not exceed $425,000 CDN. A partial exemption is available for homes between $425,000 and $450,000.

For more detailed information you may contact me at any time, at laura@vancouverpowersearch.com.

first time home buyer

Government’s Action Plan for the Economy and how it affects Home Buyers and Home Owners.

Earlier this year Prime Minister Stephen Harper rolled out Canada’s Economic Action Plan. In it there are some plans to help current home owners and First time home buyers.

Current homeowners would be able to get tax incentives or relief up to $1350 for renovating their current home between Jan27,2009 and Feb 1, 2010.

For First time home buyers, the withdrawal limit from your RRSP’s has been increased from $20,000 to $25,000. Withdrawals have to be made after Jan 27, 2009.

Also for first time home buyers, there is up to $750 of tax credit for closing costs for those who purchase after Jan 27, 2009.

for more information and full details go to www.actionplan.gc.ca

Edison Chua
Real Estate Consultant
604 – 728 – 1939

edison@vancouverpowersearch.com

first time home buyer

Yesterday, I had the chance to go over to look at the Fullerton in Richmond. There are a few units left being sold by the developer.

I must say these remaining units are of tremendous value for the price and the square footage. They call it their 2 for the price of 1 bedroom event.

An example of a good deal is a 3rd floor- 2 bedroom, 2 bathroom unit is selling for $336,800.
Its a brand new unit never lived in, the GST is net and its 955 sqft.! That amounts to around $342/sqft. which is a pretty good deal in my opinion. Also they would be offering a 2.5% fixed rate finance package for 2 years included with the purchase of the units.

This is a great buy for first time home buyers and for investors looking to make money in the long run. But buyers better hurry they only have 6 remaining units!

The website for more information and the floorplans: http://www.concordpacific.com/fullerton/

So if you or anyone you know is interested in buying their first home or buying their first investment in Richmond, please let me know or pass my information along. I will gladly be of further assistance in this matter.

Edison Chua
Real Estate Consultant
604 – 728 – 1939

edison@vancouverpowersearch.com