Monday, May 30, 2016 / by Hani Faraj
“According to a 2011 survey by the Canada Mortgage & Housing Corporation, 81 per cent of recent buyers, at some point, will rely on a mortgage professional (either a mortgage lender or mortgage broker) for advice and consultation.”
- Canadian Living Magazine
Do you know the difference between a mortgage broker and a bank mortgage specialist? While the difference may appear subtle on the surface, there are major discrepancies between the two, which could seriously impact your mortgage rate and application process.
The crucial difference between a mortgage broker and a bank mortgage specialist is also the simplest: a mortgage broker works for you, and a bank mortgage specialist works for the bank. This defining characteristic could save you substantial amounts of money and be the difference between getting the right deal for you, or the deal that works best for the bank.
Bank specialists are employed by a company, ther ...
Monday, May 16, 2016 / by Hani Faraj
CLOSING COSTS - 9 ITEMS TO REMEMBER
Closing costs and the remainder of your down payment are usually due a couple of days before the actual closing date. Payments are made directly to the lawyer.
GST (Goods and Services Tax): Houses purchased from the builder are subject to GST. A purchaser of a newly built house should be satisfied as to how the GST is treated before signing the contract. The contract they have entered may require the payment of an additional 5% in GST. Relief is available by way of a GST New Housing Rebate. The rebate equals 36% (to a maximum of $8,750) of the GST payable on the purchase of homes under $450,000. In other words, a qualified purchaser will pay 4.48% GST after rebate. Sometimes the purchaser will assign the benefit of the rebate to the vendor with this being reflected in the purchase price.
PTT (Property Transfer Tax): This tax is payable on the purchase of all real property in B.C. The calculation is based on 1% of the purc ...
Monday, May 16, 2016 / by Hani Faraj
This week we have a few things to watch out for that can frustrate a deal from Vaneesh Dass - Mortgage Broker of Verico Xeva Mortgage
What can Frustrate a Deal
Adding the furniture to the contract
Thinking that the cashback from the developer when added to the contract is not going to be deducted from the purchase price
Completion of purchase and sale are the same date
Not setting a clear subject removal date and time so that the deadline isn’t missed
Client not having funds for the deposit, as they expect those funds from the sale.
Not addressing the presence of potential underground tanks in properties
Signatures not witnessed – not sure how strict lenders are on this now, TD used to be brutal for requiring it
Incorrect page numbers
PDS - client checks yes on a box relating to assessment or wor ...
Monday, May 09, 2016 / by Hani Faraj
This week we have the new down payment rules from Vaneesh Dass - Mortgage Broker of Verico Xeva Mortgage
NEW DOWN PAYMENT RULES
New down payment rules come into effect as of February 15, 2016.
The minimum down payment for new insured mortgages will increase from 5% to 10% for the portion of the house price above $500,000. For example: A $750,000 home will now require $50,000 down -- 5% for the first $500,000 and 10% down for the remaining $250,000.
Properties up to $500,000 will continue to require a minimum of 5% down. Properties in excess of $1 million will still require 20% down. According to the Ministry, these changes are meant to reduce taxpayer exposure while supporting long-term stability of the housing market
EXAMPLE OF A $700,000.00 PURCHASE
BEFORE FEBRUARY 15TH, 2016
5% MINIMUM DOWN PAYMENT
5% X $700,000.00 = $35,000.00
AFTER FEBRUARY 15TH, 2016
$500,000.00 @ 5% = $25,000.00
Monday, May 02, 2016 / by Hani Faraj
When you enter a home, you are looking for the features you want and need—such as bathrooms, bedrooms, and a backyard. But there are some other things you should be looking for as well when shopping for your new house. Being aware of the potential risks in any given property can save you a lot of money in the long run.
Home Insurance Risks When you apply for a homeowner’s insurance policy, your rates will be based on the risk factors that the insurance company sees in the property. Certain factors can increase your rates, and some can even mean you don’t qualify for the best policies.
A swimming pool is something most people don’t recognize as a risk factor. Insurance companies see it as a liability risk and are likely to increase your rates. If the pool doesn’t have all of the features required (such as a fence of a certain height) you may even find the company refuses to cover it.
Old wi ...