Home Renovation Tax Credit (HRTC) Program- Canceled
Home Renovation Tax Credit (HRTC) Program Canceled
Announced yesterday as part of the Federal budget was that the Home Renovation Tax Credit (HRTC) program will not be continued this year (2010) after its introduction in 2009. The program was too popular and is not something that they could sustain moving forward.
This is unfortunate, however, than are still cost effective ways to manage home renovations. Contact me today to discuss alternatives that may suit you and your home renovation plans.
Bank Prime, Variable Rate Mortgages – No Change, but …
Bank Of Canada Meeting – Bank Prime Variable Rate Mortgages, No Change Yet – But Coming Soon
Yesterday the Bank of Canada met and decided to leave their rate unchanged at its historic low level. They reiterated their plan to start raising rates by or before the end of the second quarter of 2010, conditional on the outlook for inflation.
Next Bank of Canada meeting is scheduled for April 20, 2010
Bank of Canada’s full press release for March 2, 2010.
With Bank’s Prime rate having been unchanged for some time now and discounts to Prime for variable rate mortgages increasing over recent months, the interest rate today for variable rate mortgages is considerably lower than for a comparable 5 year fixed rate mortgage. As such, one’s mortgage payment on the same balance will be less each month with a variable rate mortgage than with a fixed rate mortgage, today. However, this window where “savings” can be had is closing soon and could close fast once started, with sharp increases in Prime anticipated starting by or before the third quarter of 2010, continuing through 2011. This provides support for choosing a fixed rate mortgage at this time as fixed mortgage rates are also at an historic low level with the added security of knowing you will have and enjoy this ultra low rate for the term selected.
However, as with each case and individual the choice between a fixed and variable rate mortgage is one that depends on many factors; time horizon, personal tolerance for uncertainty, and future plans to name a few.
For more information on mortgage rates and mortgages in general, feel free to contact me at any time, maury@maurylum.com.
Property Transfer Tax Partial Exemption Up To 450K – First Time Buyer Vancouver
Property Transfer Tax – First Time Home Buyers
I have done a post previously on property transfer tax in BC for first time buyers. First time home buyers may be eligible to be exempt from this tax totally when the purchase price is equal to or less than $425,000, a savings of $6,500. However, what a lot of people do not know is there is a partial exemption from the property transfer tax for eligible first time home buyers when the purchase price is between $425,000 and $450,000. Watch my video below for more information on this and feel free to contact me for further questions on this or any related topic at maury@maurylum.com.
Mortgage Penalties – Fixed Rate Closed Mortgages
Mortgage Penalties for Fixed Rate Closed Mortgages
Mortgage penalties explained for fixed rate closed mortgages. Three (3) months of interest or Interest Rate Differential (IRD), whichever is greater. I covered mortgage penalties for variable rate closed mortgages in a previous post. For further information on mortgage penalties and or to discuss all of your options, contact me at any time, maury@maurylum.com.
Changes To Mortgage Qualification – New Rules
New Rules for Mortgage Qualification
Announced today, effective April 19, 2010, or sooner, there will be three (3) new rules that will apply to the qualification for government backed, insured mortgages (i.e. CMHC, high ratio insured mortgages). The changes are:
- Minimum down payment for non-owner occupied properties will be increased to 20% of the purchase price (currently 5%).
- Maximum one can refinance their property up to will be 90% of current market value (reduced down from 95% currently).
- The five year fixed rate will be used as a minimum for determining the mortgage amount that can be qualified for regardless of what term or product a consumer ultimately chooses.
Ultimately these measures are designed to reduce the number of individuals purchasing properties for speculation, help keep home ownership as an effective way to save, and prepare people for mortgage rates and payments that are more typical on an ongoing basis respectively.
Full news release for the changes to the rules for qualification for government backed insured mortgages.
We may see slightly different rules from bank to bank, as a bank’s guidelines always supersede that of the insurers. Banks may also decide to implement these changes earlier than April 19, 2010.
Lastly, rates are expected to remain somewhat steady through to June 2010, after which increases may be seen.
For more information on this or a related topic please contact me at any time, maury@maurylum.com.