BC Speculation Tax Update

Good Morning Salutation,

On Monday, the BC government announced changes to the Speculation Tax which was proposed earlier this year.

“The speculation tax is intended to improve housing affordability in areas where the need is most acute, while exempting rural cabins and vacation homes”, Finance Minister Carol James said. These statements come after heavy criticism from many BC Homeowners and according to James, the changes will exempt 99% of British Columbians from the tax.

  • Areas the Speculation Tax will Apply
    • Metro Vancouver
    • The Capital Regional District (excluding the Gulf Islands and Juan de Fuca)
    • Kelowna and West Kelowna
    • Nanaimo-Lantzville
    • Abbotsford, Chilliwack and Mission
  • Tax Rates 2018
    • 0.5% of the property value for all properties subject to the tax
  • Tax Rates 2019 and subsequent years
    • 2% for foreign investors and satellite families
    • 1% for Canadian citizens and permanent residents who do not live in British Columbia
    • 0.5% for British Columbians who are Canadian residents or permanent residents (and not members of a satellite family)
  • Exemptions
    • People who rent out their second property for at least six months of the year
    • B.C. residents with second properties are eligible for tax credits valued up to $400,000

I BELIEVE THIS POLICTICAL CARTOON SUMS UP OWNERSHIP OF RECREATIONAL PROPERTIES FOR BC RESIDENCE.


As always, I am here to help. Should you have any questions please do not hesitate to contact me.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”
Dave 604 897 2741 Jordi 604 615 1312
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BRMC Vs. The Banks. Bigger Bang For Your Buck.

Here is another reason to use BRMC as your Abbotsford, Chilliwack and Mission mortgage brokers this year. If you are putting 20% down payment or more toward the purchase of your next home, working with an award winning BRMC broker will allow you the same purchase power as you could find last year before the new rule changes introduced Jan 1st 2018. That is 21%+ more home with us!

Here is an example of how we differentiate ourselves besides lower rates:

BUYING POWER – 21%+ Greater with BRMC

We can also help you purchase or refinance your home without the need of the financial stress if you are putting 20% down or more where as the majority of lenders have to qualify using the financial stress test which effectively reduces your purchase power by approximately 20% as indicated by the above example. The difference in not only a reduction purchase power but the style of home you are looking for ie townhome or home. In our current market renting a home is the same amount and if not more in some cases as owning your own home. . So ask yourself this question, why not use BRMC?

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave 604 897 2741 Jordi 604 615 1312

BRMC Google review Chilliwack Office

BRMC Google review Abbotsford Office

BRMC Google review Mission Office

www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

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The 10 Not-To-Do’s after Subject Removal

Buying a home is the largest purchase most of us ever encounter. Yet a small percentage of people sometimes take less time considering it than they do when buying an online item. The reason is, it’s unique territory to many. We don’t know what to ask and we are aided by many professionals unlike when we buy items on online.

We also may take things for granted, rely on others too much, and sometimes this leads to buyers remorse. So let’s help you arm your self with the mortgage not-to-do’s that can cause you to lose your new home, before you even move in.

Regardless if you are pre-approved for a mortgage or currently engaged in negotiating a home purchase with an approved mortgage, these rules below apply. The rules are especially important after you have removed your subjects on your purchase contract and put up your deposit to hold your home because if you make one bad move here you could lose your deposit which can be $10,000 to $100,000 and be subject to lawsuits.

  1. Thou shall not buy a new car, no matter what, or you may be living in it! It will impact your debt ratio’s and you could be declined.
  2. Thou shall not co-sign a loan for anyone, for anything. It will impact your debt ratio’s and you could be declined.
  3. Thou shall not quit or change your job. New job income’s can not be used for a mortgage application, and it will impact your debt ratio’s and you could be declined.
  4. Thou shall not use your Credit Cards or Line Of Credits for big purchase. It will impact your debt ratio’s and you could be declined.
  5. Thou shall not spend your down payment savings or closing costs savings verified by your mortgage company. They will decline you if they recheck.
  6. …Did I mention don’t quit your job?? That’s a big one. I’ve seen it twice in 15 years to my amazement and yes the lenders check up to 10 days before closing. They frown upon this.
  7. Thou shall not apply for new credit of any type, especially lines of credit for reno’s or furniture purchase. It will impact your debt ratio’s and you could be declined.
  8. Thou shall not make large deposits into your savings and chequing accounts. All deposits must now be verified and this takes time and could result in long delays at closing.
  9. Thou shall not allow any mortgage application to be processed with omitted OR missing debts or non-disclosed support payments. It will be found eventually and usually too late. This is your responsibility ultimately – your bank and mortgage brokers can’t read minds and don’t always see all debts up front.
  10. Thou shall not miss a payment or a cell phone bill. Any missed payments may lower your score and cause the lender to pull their approval.

I hope this list was helpful and if you are looking for a mortgage in Chilliwack, Abbotsford or Mission we have offices and mortgages brokers standing by! 

I personally would like to wish you and your families a healthy and prosperous 2018.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave 604 897 2741 Jordi 604 615 1312

www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

www.PeaceOfficeMortgageBroker.com

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House Buyers To-Do-List before Jan 1st 2018

As our Remembrance Day weekend passes, quality time has been spent with families and community and I now look forward to what’s on the calendar next. What is next you ask? I’ve completed my Stranger Things Season 2 binge so onwards and upwards. The Christmas Season is next of course!… and the looming Jan 1st mortgage rule deadline that will inevitably take up most of our Abbotsford Mortgage Broker Teams December, (I really sucked the fun out of all that Christmas and Binge TV watching stuff)… but we love Mortgages & Christmas so bring it on!

So let’s get a head start on the mortgage stuff with a quick list of things you should prepare and avoid mistakes that can potentially cause a mortgage turns down from lenders at crunch time.

It appears the next round of rule changes, set for Jan 1st, are not as publicly talked about as the previous rule changes that were implemented last year. In fact I’m getting a lot less calls regarding it than I expected.

Last year our phones were flooded with first time buyer inquiries regarding how the changes would impact them and what they could do to prepare. It would seem the repeat buyers with larger down payments are Rodeo Experts now and have other things to worry about. Anyone else just realize we have 5 weekends to get our shopping done? So I understand.
So before the flurry of shopping for houses and shopping for Christmas all hits at once, you should quickly request these items to be prepared:

IMPORTANT: This list will help you obtain a signed mortgage approval before January 1, 2018 and be exempt from the new mortgage rule while qualifying under the current lending guidelines.

  • Ask for a job letter from your employer
  • Know where to get a copy of your paystub
  • Ask your accountant for PDF copies ahead of time: T1 Generals for 2015 and 2016. They may be taking holidays come December
  • Have your accountant provide you your most recent NOA
  • Get a mortgage Print out for your current mortgage
  • Get a rate hold from us and sign the pre-approval

After Jan 1st 2018 every buyer in town can expect

  • A reduced mortgage approval, reducing the potential purchase price for a new home. On average this will bring down buying power by approximately 14%-20%
  • With a 50% down-payment and a secured 5 year fixed rate at 3.19%, buyers would have to qualify on a rate of 5.19% (3.19% + 2% = 5.19%) OR the benchmark rate of 4.99%. Which ever is higher.
  • Buying Power Before January 1, 2018 Example: Household income: $120,000 per year, Down-payment of up to $180,000 (at least 20% down) =MAX PURCHASE PRICE $900K
  • Buying Power After January 1, 2018 Example: Household income: $120,000 per year, Down-payment of up to $180,000 (at least 20% down) =MAX PURCHASE PRICE $800k

Call us if you want to ear mark an approval or just ask a question and let’s see if it is the right time to buy or sell. The easy, hassle-free answer to your mortgage questions.

By Referral Mortgage Consultants*

“Click, Call, Chat – Award Winning Brokers”

Dave B 604 897 2741 Jordi 604 615 1312 www.AbbotsfordsMortgageBroker.com

www.ChilliwackMortgageBroker.com

 www.BRMC.ca

 www.PeaceOfficeMortgageBroker.com

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