Maria Mak. Burnaby Realtor - Important news if buying a 2nd home or self-employed

As of May 30, 2014, Canada Mortgage and Housing Corporation (CMHC) is discontinuing mortgage loan insurance for buyers of second homes.

CMHC is also making it more difficult for self-employed home buyers to qualify for mortgage loan insurance.

In Canada, home buyers with less than a 20 per cent down payment are required to buy mortgage insurance. The largest provider of mortgage insurance in Canada is the CMHC.

Second home buyers

This program offered mortgage loan insurance to second home buyers with less than a 20 per cent down payment. The program ends May 30 and could affect parents helping children buy their first home.

Self-employed buyers

This program previously allowed self-employed buyers to prove their income without traditional third-party validation. Starting June 1, 2014, the program will require self-employed buyers to prove their income with copies of their Canada Revenue Agency Notice of Assessment, audited financial statements, or unaudited financial statements prepared by an independent third party, for the previous two year period.

Both programs available until May 30

Regardless of the closing date of the home purchase, both programs are available for new mortgage loan insurance applications received by CMHC on or before May 30, 2014.

CMHC is reviewing its mortgage loan insurance business and making changes to reduce taxpayers’ exposure to risk.

Private insurers such as Genworth will still offer mortgage insurance to buyers of second homes and to self-employed borrowers unable to provide traditional sources of income validation.

Malaria Mak. Burnaby Realtor - Find out why a REALTOR® is your best ally when buying or selling your home.

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Contact Maria Mak @ 604-839-6368 or visit www.mariamak.com for all your premium real estate services, you will be smiling too,

 

 

 

Maria Mak. Burnaby Real Estate - Government reduces tax burden on first-time buyers

First-time home buyers received welcome news in today’s provincial budget. Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.

The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

The government estimates this measure will cost $8 million in lost tax revenue each year.

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.

In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. 

In 2005, the government increased the threshold to $325,000 from $275,000.

The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

Here is a link to the Budget.: http://www.bcbudget.gov.bc.ca/2014/default.htm

Maria Mak. Burnaby Real Estate - steady trends continue in the GreaterVancouver housing market

Steady trends continue in the Greater Vancouver housing market

The first month of 2014 saw home sale and listing totals outpace historical averages in the Greater Vancouver housing market. 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,760 on the Multiple Listing Service® (MLS®) in January 2014. This represents a 30.3 per cent increase compared to the 1,351 sales recorded in January 2013, and a 9.9 per cent decline compared to the 1,953 sales in December 2013. 

Last month’s sales were 7.2 per cent above the 10-year sales average for the month.

“The Greater Vancouver housing market has been in a balanced market for nearly a year. This has meant steady home sale and listing activity accompanied by stable home prices,” Sandra Wyant, REBGV president said. 

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,345 in January. This represents a 4.2 per cent increase compared to the 5,128 new listings reported in January 2013. 

Last month’s new listing count was 17.7 per cent higher than the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the Greater Vancouver MLS® is 12,602, a 4.9 per cent decline compared to January 2013 and a nine per cent increase compared to December 2013. 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $606,800. This represents a 3.2 per cent increase compared to January 2013. 

With the sales-to-active-listings ratio at 14 per cent, the region remains in balanced market territory.

“If you’re looking to sell your home in a balanced market, it’s critical that your list price is reflective of current market conditions,” Wyant said. 

Sales of detached properties in January 2014 reached 728, an increase of 34.3 per cent from the 542 detached sales recorded in January 2013, and a 10.5 per cent increase from the 659 units sold in January 2012. The benchmark price for a detached property in Greater Vancouver increased 3.2 per cent from January 2013 to $929,700. 

Sales of apartment properties reached 753 in January 2014, an increase of 30.7 per cent compared to the 576 sales in January 2013, and an increase of 14.6 per cent compared to the 657 sales in January 2012. The benchmark price of an apartment property increased 3.7 per cent from January 2013 to $371,500. 

Attached property sales in January 2014 totalled 279, an increase of 19.7 per cent compared to the 233 sales in January 2013, and a 6.9 per cent increase from the 261 attached properties sold in January 2012. The benchmark price of an attached unit increased 1.7 per cent between January 2013 and 2014 to $457,700.