Dear Home Buyer,

As your first home purchase specialists, we work on your behalf to find the home and mortgage that suits your needs. Best of all - our service is "FREE"*. 

In this Issue


 

  • Property Purchase Tax
  • Purchase Plus Improvement Program
  • Lawyer or Notary?

 Property Purchase Tax

First time home buyers may qualify for an exemption from the Property Purchase Tax (PPT).  They must have never owned a home anywhere in the world, must have lived in BC for at least 1 year and must not place a down payment more than 30%.  In addition, to be exempt, the buyer must live in the property for at least one year.  To be fully exempt, the purchase price must not exceed $275,000.

PPT can comprise the bulk of your closing costs.  PPT is computed at 1% of the first $200,000 of the purchase price (or fair market value) and 2% of the balance.  For example, if you are purchasing a property worth $300,000, PPT is equivalent to $4,000.

Purchase Plus Improvement Program

This is a program for high-ratio mortgages insured by CMHC and GE Mortgage Insurance.  It allows a borrower to add the cost of minor renovations to their mortgage. 

Say you've made an offer to purchase a house for $200,000 but you'd like to renovate the basement.  You've obtained quotes from a renovator which shows the cost to be $10,000  You can apply to have the cost of the renovation added on to your mortgage so that your mortgage will be based on $210,000.

Lawyer or Notary?

Most lenders will allow you to use your own lawyer or notary. But, which one is better? There is a general perception that notaries are less expensive.  But this is not necessarily true. 

Lawyers have more training than a notary and are able to provide legal advice.  If you get into a situation where there are problems (for example, breach of contract by the seller), your lawyer will be in the best position to advise you on how to proceed.  A notary will have to seek legal advice from a lawyer.  So, don't base your choice solely on price.  Remember, hiring the right lawyer or notary will give you the peace of mind that the transaction was done properly.

If you need a referral to a good legal professional, let us know.

Resources:

  • BCMortgage.ca - BC's most comprehensive website for mortgages for first time home buyers
  • CMHC - Canadian Mortgage and Home Corporation
  • Equifax - Obtain your credit reports online

---------------
If you wish to unsubscribe at any time, please reply to this message with Unsubscribe in the subject line.