First Time Home Buyers' Program

Becoming a home owner for the first time can be very confusing and overwhelming for many people!  You've probably heard many things about buying a home for the first time however you may not be clear about everything you've heard!  

There are many benefits for first time buyers and among them is the First Time Buyers' Program!  I get many questions about the First Tiime Home Buyers' Program!  The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax (Usually referred to as PPT) you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax!

Another question I get often is what if my partner has bought before buy I have not?  If one or more of the purchasers don’t qualify, then only the percentage of interest that the first time home buyer(s) have in the property is eligible!  For example, if you qualify and purchase a property with a fair market value of $400,000 with a person that doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

How do I know if I Qualify?

To qualify for a full exemption  at the time the property is registered you must:

• be a Canadian citizen or permanent resident
• have lived in B.C. for 12 consecutive months immediately before the date you register the property or filed at least 2 income tax returns as a B.C. resident in the last 6 years
• have never owned an interest in a principal residence anywhere in the world at any time
• you have never received a first time home buyers' exemption or refund

and ALSO the property must:

• be located in B.C.
• only be used as your principal residence
• have a fair market value of $425,000 or less
• be 0.5 hectares (1.24 acres) or smaller

You may qualify for a partial exemption from the tax if the property:

• has a fair market value less than $450,000
• larger than 0.5 hectares
• has another building on the property other than the principal residence

Also, if you don’t qualify because you are not a Canadian citizen or permanent resident, but you become one within 12 months of when the property is registered, you may apply for a refund of the tax. To apply for a refund call (250) 387-0604.

To Apply:

To apply for the First Time Home Buyers' Program you need to complete the First Time Home Buyers' Property Transfer Tax Return when you or your legal professional (normally your lawyer) register the property transfer.

After you have applied you must meet additional requirements during the first year you own the property to keep the tax exemption.

Penalty for False Declaration

All applications are reviewed. You will be charged a penalty equal to double the tax if you falsely declare that:

• you have never owned an interest in a principal residence anywhere in the world at any time, or
• you have never received a first time home buyers' exemption or refund

First Year of Ownership:

At the end of the first year you own the property you will receive a letter. The letter is to conditionally confirm that you meet the occupancy and property value requirements after you:

• purchased an existing home, or
• purchased vacant land and built a home

Courtesy of the Government of BC website-  http://www2.gov.bc.ca/gov/topic.pageid=BBD16E2D7C1841A7BBD420E3AC5380F1

Consistent home sale and listing activity has allowed balanced market conditions to prevail in the Greater Vancouver housing market for most of 2013.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,321 on the Multiple Listing Service® (MLS®) in November 2013. This represents a 37.7 per cent increase compared to the 1,686 sales recorded in November 2012, and a 12.8 per cent decline compared to the 2,661 sales in October 2013.

Last month’s sales were 1.2 per cent below the 10-year sales average for the month, while new listings were 1.5 per cent above the 10-year November average.  “We’ve seen steady and consistent trends the Greater Vancouver housing market for much of this year,” Sandra Wyant, REBGV president said. “This year’s activity has resulted in gradual and modest increases in home prices of approximately one per cent over the last 12 months in the region.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 3,245 in November. This represents a 17.7 per cent increase compared to the 2,758 new listings reported in November 2012 and a 24.8 per cent decline compared to the 4,315 new listings in October of this year.

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 13,986, a 10.9 per cent decrease compared to November 2012 and an 8.3 per cent decline compared to October 2013.

The sales-to-active-listings ratio currently sits at 16.6 per cent in Greater Vancouver.

The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $603,000. This represents a 1 per cent increase compared to November 2012.

Sales of detached properties reached 926 in November 2013, an increase of 47.2 per cent from the 629 detached sales recorded in November 2012, and a 1.1 per cent increase from the 916 units sold in November 2011. The benchmark price for detached properties increased 1.1 per cent from November 2012 to $924,800.  Sales of apartment properties reached 969 in November 2013, an increase of 29.2 per cent compared to the 750 sales in November 2012, and a decline of 3.1 per cent compared to the 1,000 sales in November 2011. The benchmark price of an apartment property increased 0.8 per cent from November 2012 to $367,800. 

Attached property sales in November 2013 totalled 426, an increase of 38.8 per cent compared to the 307 sales in November 2012, and a 4.1 per cent decline compared to the 444 attached properties sold in November 2011. The benchmark price of an attached unit is currently $458,000, which is a 0.8 per cent increase from November 2012.

Courtesy of the Real Estate Board of Greater Vancouver 

Did you know that 86% of home owners agreed that home ownership is a good investment?  

81% of home buyers relied on a mortgage lender, broker or other professional for advice!

AND Canadians take on average 11 months to plan the purchase of a home!

If you're thinking of buying in the future, contact me and let's get the process started!

Courtesy of Canada Housing and Mortgage 

What's one of the most important rooms in your home? When it comes to selling your property quickly, and for the best price, the answer is clearly the kitchen!  In fact, did you know that one of the most common explanations a particular buyer gives for not making an offer is, "I liked the house, but I wasn't too keen on the kitchen."

 
That doesn't mean you must do a major renovation. However, you should do what you can to make the kitchen as attractive as possible to buyers. Here are some ideas:

First, clear the countertops. Put away the toaster and other items. You want to make the entire countertop area seem as spacious as possible.  If the cabinetry is old, you can spruce it up by installing new knobs, handles and other hardware. A fresh coat of paint on the walls and ceiling can also make the kitchen look like it has had a major renovation – and it will only cost you a few hundred dollars. According to an article on the website HDTV.com, "The fastest, most inexpensive kitchen updates include painting and new
cabinet hardware."  Replacing the countertops is a more expensive renovation, but it may be worth it if the current counters are old and worn.  

Finally, when preparing your kitchen for a viewing, make sure it's clean and tidy. The garbage and recycling bins should be empty. Buyers will open cabinets so make sure items on shelves are neatly organized with the front labels facing forward.  There are many other ways to make the most important room in your home look great to potential buyers.

Don't hesitate to call me if you have any questions!  

B.C.'s residential home sales are predicted to grow 6.3 per cent next year as the housing market moves into balanced territory, favouring neither sellers nor buyers, says the B.C. Real Estate Association.

The association's Fourth Quarter Housing Forecast shows a positive outlook for 2014 after home sales declined through 2012 before recovering this year.  Sales are expected to jump to 76,200 units next year after rising just over six per cent in 2013 as consumer demand picked up, bringing home sales to long-term average levels.

Ramped-up consumer demand has come at the same time as listings have fallen nine per cent this year, potentially pushing the average home price up 4.3 per cent to $537,100 this year and another 2.1 per cent to $548,200 in 2014.

Housing starts, however, are expected to see slower growth, falling five per cent to 26,100 units this year before jumping 3.8 per cent to 27,100 units in 2014.

The average Greater Vancouver home price on the Multiple Listing Service (MLS) is expected to increase 4.8 per cent this year to $765,000 and rise a further 0.9 per cent to $772,000 next year.

However, consumer demand in the Vancouver area is expected to flatten due to weak economic growth and slow employment gains.

Courtesy The Huntington Post 

VANCOUVER, B.C. – November 4, 2013 – Home buyer and seller activity continues to mirror historical averages in the Greater Vancouver housing market. These trends have helped keep the region in a balanced state for the last nine months.

The Real Estate Board of Greater Vancouver reports that residential property sales in Greater Vancouver reached 2,661 on the Multiple Listing Service® (MLS®) in October 2013. This is a 37.8 per cent increase compared to the 1,931 sales recorded in October 2012, and a 7.2 per cent increase from the 2,483 sales recorded in September 2013.

New listings for attached, detached and apartment properties in Greater Vancouver totaled 4,315 in October 2013. This represents a 0.2 per cent decline from the 4,323 new listings reported in October 2012, and a decrease of 14.2 per cent compared to the 5,030 new listings reported in September of this year.

Last month’s sales were 2.8 per cent above the 10-year sales average for the month, while new listings for the month were 1.9 per cent below the 10-year average.

“We continue to see fairly typical activity when it comes to monthly home sale and listing
totals,” Sandra Wyant, REBGV president said. “Today’s activity is helping to keep us in
balanced market territory, which means that prices tend to experience minimal fluctuation.”

The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 15,257, a decline of 12.2 per cent compared to this time last year, and a decline of 5.3 per cent compared to September 2013.

The sales-to-active-listings ratio is currently at 17.4 per cent in Greater Vancouver.

The MLS® Home Price Index composite benchmark price for all residential properties in
Greater Vancouver is $600,700. This represents a 0.5 per cent decline compared to this time last year.

Sales of detached properties reached 1,067 in October 2013, an increase of 35.1 per cent from the 790 detached sales recorded in October 2012 and a 9.5 per cent increase from the 974 units sold in October 2011. The benchmark price for detached properties decreased 0.5 per cent from October 2012 to $922,600.

Sales of apartment properties reached 1,098 in October 2013, an increase of 36.7 per cent compared to the 803 apartment sales recorded in October 2012, and an increase of 14.6 per cent compared to the 958 sales in October 2011. The benchmark price of an apartment property decreased 0.9 per cent from October 2012 to $365,600.

Attached property sales totaled 496, an increase of 46.7 per cent compared to the 338 attached property sales recorded in 2012 and a 29.8 per cent increase compared to the 382 attached property sales recorded in October 2011. The benchmark price of an attached property is $458,000, which is virtually unchanged from October 2012.


The real estate industry is a key economic driver in British Columbia. In 2012, 25,032 homes changed ownership in the Board’s area, generating $1.07 billion in economic spin-off activity and creating an estimated 7,125 jobs. The total dollar value of residential sales transacted throughout the MLS® system in Greater Vancouver totalled $18.6 billion in 2012.

Courtesy of the Greater Vancouver Real Estate Board

The next phase of changes at the Port Moody Transit Exchange and West Coast Express (WCE) station park-and-ride facility will go into effect on Monday, November 4. 
 
As part of the new configuration, the passenger pick-up and drop-off area and TransLink bus loop have shifted. Drivers wishing to access the passenger pick-up and drop-off area must use Spring Street and drive through the parking lot on the northwest corner of Spring Street and Williams Street. To exit the passenger pick-up and drop-off area, drivers will need to go through the parking lot on the northeast corner of Spring Street and Hugh Street (entrance and exit routes shown on the map below in orange). Drivers will no longer have access to the Port Moody Transit Exchange and WCE station and park-and-and-ride facility via Williams Street. Williams Street will be for bus use only.
 
Signage will be in place to indicate changes to the location of the pick-up and drop-off area and the bus loop for drivers and pedestrians.

Construction fencing will be installed between the passenger pick-up and drop-off area and the bus loop. Please watch for signage directing pedestrians on how to access the bus loop and WCE station platform.
 
Parking for WCE park-and-ride customers is available in four locations as shown on the map in yellow. WCE customers wishing to use the parking lot on the west side of the park-and-ride facility will continue to use Hugh Street to access this lot. There will be no change to the number of parking stalls available to customers.
 
Additional changes at the Port Moody Transit Exchange and WCE station are scheduled to occur in the coming months and WCE and transit customers will be notified in advance.
 
Details of Work:

• Access to the WCE Port Moody Station will be maintained at all times.
• There will be no changes in access to the WCE platform during this phase of construction. The existing WCE station access points are shown on the map in pink.
• Traffic control personnel will be on-site to assist drivers.
• The location of the WCE Train Bus stop will be shifted to the east side of Williams Street just north of Spring Street.
• Cyclists and pedestrians may be stopped on occasion and should watch for traffic control personnel. Once changes to access and the parking lot are complete, crews will begin building the Evergreen Line’s Moody Centre Station. Expect construction-related noise while work is underway.

 
A key goal of the Evergreen Line Rapid Transit Project is to minimize construction-related disruption and maximize traffic flow and predictability during construction activities. Drivers are asked to watch for construction signs and obey traffic control personnel.

Coutesy - EGRT Construction, 

If you’re a typical borrower, your debt ratios will largely determine if you’re approved for a mortgage.

For applicants who push the limits of qualification, those approvals have been tougher to come by. That’s a direct result of last year’s mortgage rule tightening, which imposed stricter debt ratio calculations (among other things).

And by year-end, those calculations will get even more conservative!  On June 27, CMHC issued new guidelines for calculating debt ratios and confirming income documents.

“Under current practice, CMHC stipulates standard formulas for calculation of debt service ratios but has not been specific as to how each key input is to be treated,” says CMHC spokesman Charles Sauriol.

These new guidelines will clarify that, and they become effective on CMHC-insured mortgages on December 31, 2013. (In practice, many lenders already apply them.)

These standards will apply to all insured 1-4 unit residential mortgages, regardless of the loan-to-value ratio. Uninsured (conventional) mortgages are allowed different policies, but most lenders will use the same rules for all their approvals.

Here are some of CMHC's newly minted insured mortgage “clarifications”:

For variable income: Lenders must use “an amount not exceeding the average income of the past two years.” Variable refers to things like bonuses, tips, seasonal employment and investment income.

For rental income:  If a borrower owns other non-owner occupied rental properties, the principal, interest, property taxes and heat (P.I.T.H.) on those properties must either be:

- deducted from gross rent revenue to establish net rental income; or

-  included in ‘other debt obligations’ when the Total Debt Service (TDS) ratio is being calculated.

For guarantor income:  A guarantor’s income must not be used in GDS/TDS ratios “unless the guarantor…occupies the home and is the spouse or common-law partner of the borrower.”

Unsecured credit lines & credit cards: For these debts, “No less than 3% of the outstanding balance” must be included in monthly debt payments. Interest-only payments are no longer considered on credit lines. Furthermore, lenders must assess the borrower’s credit history and borrowing behaviour when determining the amount of revolving credit that should be accounted for in debt ratios.

Secured lines of credit:  Lenders must factor in “the equivalent” of a payment that's based on “the outstanding balance amortized over 25 years.” That payment must use the contract rate (of the LOC) or the 5-year Benchmark rate (V121764) published by Bank of Canada (if the contract rate is unknown). Again, interest-only payments are no longer allowed for debt ratio calculation purposes.

Heating costs:  Lenders must now obtain the “actual heating cost records” of a property. When no such history is available, the heat expense used in debt ratio calculations “must be a reasonable estimate taking into consideration factors such as property size, location and/or type of heating system.” That’s why some lenders have now moved to a set heating cost formula, like:  (square footage x $0.75) / 12 months

Compared to past methods (which entailed flat heating costs, like $100/month), the new guidelines can double or triple the heating cost that must be factored into debt ratios on larger properties, and reduce it on smaller ones.

It’s important to repeat that most of these policies are already being followed by most lenders. But there are exceptions!

Those exception-case lenders are commonly viewed as go-to sources when borrowers have tight debt ratios. These new guidelines are designed to minimize those “loopholes.”

All of this has come about, in part, because of Ottawa’s rule changes last July. At that time, the government fixed the maximum Gross Debt Service and Total Debt Service ratios for insured mortgages at 39% and 44% respectively.

Sauriol says that change “reinforces the importance for CMHC to ensure that debt service ratios provide the same measure of a specific borrower’s ability to service the mortgage debt, regardless of the lender submitting the application to CMHC for insurance.”

Call me if you are thinking of buying and get pre-approved before the changes happen!

Courtesey - “By Robert McLister, Editor, CanadianMortgageTrends.com” 

When you see a new home you like on the market, it's easy to get distracted by all the features you love – the wrap-around backyard deck or the spacious rec room with plenty of space for entertaining. You need to make sure that in all that excitement you don’t overlook any expensive maintenance issues that could be just around the corner!

Nothing lasts forever. The major components of every home – from the furnace to the roof shingles – need to be replaced eventually. Knowing when such maintenance issues are likely to arise can help you make a smarter decision about the home you're considering.

How do you do that?  When viewing a property, ask for the age of the major components of the home, such as the roof shingles, furnace, air conditioner, water heater, and appliances. Roof shingles may look merely weathered in spots – and you might think they have years of service left – when, in fact, they're due to be replaced in a year.

Also pay close attention to the backyard deck, fencing, flooring, and windows. Do any of those components look aged, worn, and in need of repair or replacement sometime soon?

Finally, don't forget to check the kitchen and bathrooms. Sinks, faucets, bathtubs, showers, and cabinetry have a life-span of about 10-15 years.  Of course, there are things you can't see, such as wiring, plumbing, venting, and other components of a property that may require maintenance soon.  That's why it's so important to make any offer to purchase a home conditional on passing an inspection by a qualified home inspector!  

Want more ideas on buying the right home for you? Give me a call as I would be happy to help!

When you’re shopping for a new home, you want to find a property that has all the features and characteristics you want. A large deck surrounded by picturesque landscaping ... a beautiful kitchen with gleaming marble countertops... a cozy finished basement with fireplace....

You should look for the ideal home. You deserve it!  But some home buyers make the mistake of becoming fixated on finding the "perfect" property, and passing too quickly on those homes that don't quite measure up.

Why is that a mistake? Because some of those less-than-perfect properties have the potential of becoming your next dream home.  First of all, a home that is lacking some desirable features, such as a finished basement, will probably cost less. Those savings may be more than enough to cover any needed upgrade or renovation.

Secondly, if you look at a home in terms of its potential, rather than the features it happens to have now, there will be more properties available on the market for you to consider.  If you're determined to have a large wrap-around deck for entertaining, for example, don't cross homes that don't have this feature off your list.  At least not yet!  Instead, view these properties with an eye on potential. Is the backyard big enough to accommodate a large deck? How would a deck like that look if added to this particular property? How much would such a renovation cost?  

There's no doubt about it. You want to find a home that has all the features and characteristics you want. Make sure you work with a good REALTOR®, and there is a good chance you'll find a property that has most of them!

But keep an open mind. Sometimes a "diamond in the rough" can – with an upgrade or renovation – become a home you'll treasure for years!

Temporary Lane Closures on North Road
Between Austin Avenue and Foster Avenue
 

As part of construction for the Evergreen Line, there will be temporary lane closures on North Road, between Austin Avenue and Foster Avenue, starting the week of October 28 and continuing for approximately four months, to enable crews to safely construct columns for the elevated guideway on North Road.
 
WHAT TO EXPECT

• Construction crews will be working Monday to Saturday, between 6 a.m. and 8 p.m. Lane closures will vary from day-to-day as work advances. These lane closures are part of an effort to reduce night-time construction activity, but some intermittent night-time work may be required. Residents and businesses will be notified in advance of extended night-time work.
• There will be temporary parking restrictions on North Road immediately adjacent to the active work zones. Please watch for signs that will include the dates and times when parking restrictions are in effect.
• In November, crews will be working on North Road between Cochrane Avenue and Cameron Street. Left turn movements from North Road northbound on to Cochrane Avenue and Cameron Street will be maintained as much as possible while construction is underway.
• Access to businesses will be maintained at all times. Business access signs will be installed so that entrances to businesses are clearly marked.
• For the safety of all pedestrians and workers, drivers are asked to watch for construction signs and traffic control personnel, drive with caution, and obey posted construction speed limits while construction is underway.
• Nearby business owners and residents can expect to see daytime construction activities with some related noise from excavation, material hauling, and the use of heavy machinery.

A key goal of the Evergreen Line Rapid Transit Project is to minimize construction-related disruption and maximize traffic flow and predictability during construction activities.

Courtesy EGRT Construction