Property Transfer Tax Calculation Tool – Vancouver, BC
Property Transfer Tax (PTT) Calculation Tool – Vancouver, BC
I have put together a spreadsheet where you can enter the purchase price of the home you are buying and it will calculate the corresponding property transfer tax amount you will need to pay at closing. The worksheet also indicates when full or partial exemption of the property transfer tax is applicable for first time home buyers.
Property transfer tax worksheet (click on icon to open worksheet – I suggest using Firefox of Chrome to get the spreadsheet as IE is not transferring the file properly)
*This should be used as a reference only and final tax amounts can be confirmed with your solicitor.
Please feel free to contact me at any time for further information on property transfer tax in Vancouver, BC and to know the exact amount, if any, you will need to pay in your situation.
604-603-2520 or maury@maurylum.com
Your Vancouver Mortgage Broker
Bank Prime Now Up – Just a bit and a slow rise
Bank prime rate increase, but just by a bit and slow and delayed rise suggested.
At yesterdays meeting the Bank Of Canada decided to raise the target for the overnight rate by 0.25%. This is the first increase since 2007 and has been expected for some time now. Banks have started to mirror this change today by adjusting their Prime rate. It should be kept in mind however, that even with this small increase that rates are just slightly above their all time low so very attractive variable rate mortgage options are still available. It has also already been suggested that further increases may not take place in the near future as a result of the uncertainty in the overall global economic recovery.
As a rough guideline, a $300,000 mortgage amortized over 30 years can expect the monthly mortgage payment to go up by just $40 with this change.
To learn more about variable rate mortgages please feel free to please contact me at any time.
604-603-2520 or maury@maurylum.com
Your Vancouver mortgage broker
Is It Good To Have A Bad Accountant?
Is It Good To Have A Bad Accountant?
Of course do not take this question literally as it is always good to have a good accountant.
This post is meant to inform those who are self employed and/or own their own business. As one’s down payment becomes less and especially if the down payment is less than 20% of the purchase price, this information is very important to take note of.
Banks and insurance companies will refer to the amount of income that is being reported in the income tax returns (e.g. T1 general and Notice Of Assessment, NOA) to confirm the annual income for someone. This income amount will then be used in the calculations to determine how much debt (i.e. mortgage and other loans) and expenses one can afford to take on. Not only will banks and insurance companies be referring to the income tax documents but they will also be looking to see the past two (2) years of income tax information. This is because the past two (2) years will be averaged to account for any year-to-year variation that is common when one is self-employed.
There are two important implications of the above information:
- Report all income – Especially cash components to one’s business. Any income that is not reported in the tax process will of course not show up and will not be able to be counted and used when applying for a mortgage. This can make the difference between being approved or not, if the amount of income that is able to be used is not sufficient to service the desired mortgage amount.
- Conscious or write-offs – It is typically the net income amount that is used for one’s annual income. Self employed people do enjoy having tax write-offs and this can be a main reason and benefit of why someone decided to become self employed. However, depending on the item(s) being written-off they may be real, true expenses and required in order to earn the gross income for the year. As such, write-offs are good in that they reduce the amount of income that tax is paid on, however, do not overlook the fact that these expenses can also be true costs and reducing your annual income (take home), by the same amount.
If you are self employed and would like more information on this topic or to know more about the options and products available for you, please contact me at any time.
604-603-2520 or maury@maurylum.com
Why NOT To Lock-In A Variable Rate Mortgage
Why NOT To Lock-In A Variable Rate Mortgage
Choosing between a variable rate and a fixed rate mortgage is an important decision. There will also always be merits for choosing either at any point in time. This why I believe that the rate type (fixed vs. variable) one selects should be best matched against the personality and preferences first and foremost.
Those who select a variable rate mortgage usually do so in the hopes to save over time. This is a reasonable assumption to make based on historical data. So locking in to a fixed rate in this situation could limit or negate potential savings.
For those that have a concern about rates rising over time this impacting their ability to afford their mortgage payment, this is an important consideration.
In general:
- Fixed mortgage rates provide payment certainty throughout your term
- Variable mortgage offer the potential to save over time
I always recommend that before clients go with a variable rate mortgage that they have the range of potential payments calculated for them so that they can see how low and how high their payment may get over their term. If they would still be comfortable with the high should it be reach for 6-18 month, then the variable rate option may be an option to consider.
However, I strongly prefer that clients NOT select a variable rate mortgage today to try and save and then try to time when the “right” time to lock in their rate before interest rates increase much. It is extremely difficult to impossible to know when this time is and you will inevitably regret your decision and feel you either locked in too early or too late. Choose the option that is best for you and then stick with it so that you can fully enjoy the benefits it offers.
For more information on the rate options for your mortgage feel free to contact me at any time.
604-603-2520 or maury@maurylum.com
Consider A Shorter Term To Save With Your Mortgage
Consider A Shorter Term To Save With Your Mortgage
Once you have answered the question whether to go with a fixed or variable rate, and if you have chosen to go with a fixed mortgage rate, do not automatically assume you should select a five (5) year term. Terms shorter than five (5) years can offer a few advantages:
- Shorter terms at any given time typically offer lower rates than the longer term alternatives. This is because rates can be better forecast in the near term (i.e. rates that are guaranteed for a longer period of time have a premium attached to them to cover potential rate fluctuations)
- The penalty to get out of a term where the remaining time left to complete it is less, can be lower
The choice of a mortgage product, rate type, and term should always be matched to an individual(s) as well as their situation. One should always consult with an independent Accredited Mortgage Professional (AMP) to have all options presented and advised on what will be suit them best now as well as in the future.
For more information on this and to see if a shorter term may be appropriate for you to help you save, contact me at any time.
604-603-2520 or maury@maurylum.com