Home Owner’s Grants – BC, AB, MB, SA, All Province Links

Home Owner Grants – Provincial

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BRITISH COLUMBIA
Home Owner Grant
http://www.rev.gov.bc.ca/individuals/Property_Taxes/Home_Owner_Grant/hog.htm

Property Transfer Tax
http://www.rev.gov.bc.ca/individuals/Property_Taxes/Property_Transfer_Tax/ptt.htm

Property Tax Deferment & Financial Hardship Property Tax Deferment
http://www.rev.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/ptd.htm

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ALBERTA
Municipal Grants
http://municipalaffairs.gov.ab.ca/mc_municipal_grants.cfm

Energy Efficiency Rebates
http://www.climatechangecentral.com/files/myrebates/AlbertaEnvironmentEnergyRebateCard.pdf

Education Property Tax Assistance for Seniors
http://www.seniors.gov.ab.ca/financial_assistance/EPTASP/index.asp

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Lender’s Product Changes and Updates (June 2009)

Bridgewater Bank
1)  For all CMHC deals that run through Emili, make sure to include:  Profession & length of time in industry, Age of Property, Sq Footage of Property (Don’t include any basement suite area),   Original Purchase Price and Dates for Refinances.  BFS Income must be reasonable.

Firstline
1)  Revised Pricing on FNF  for BC only.  Land Titles have increased their registration fees so the new fee will be $402.60 effective July 2, 2009

Critieria for Mortgage Registered in Company Name

CMHC GUIDELINES

-CMHC will allow a full rental property to be registered in a company name for fully qualified deals only.
-CMHC BFS simplified program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantor field and the individuals providing their personal loan guarantees in the borrower and co-borrowerfields.
-The mortgagor on title may be listed in the “Borrower”, “Co-borrower” or “Guarantor” fields in the Emili system for CMHC.

GENWORTH GUIDELINES

-Genworth will only allow a full rental property to be registered in a company name for fully qualified deals only.
-Genworth BFS Alt A program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantorfield and the individuals providing their personal loan guarantees in the borrower and co-borrower  fields.

LENDER GUIDELINE EXAMPLE

-Maximum of 2 guarantors only (both AA and AAA deals).
-The guarantor(s) must have signing authority with the company.
-The guarantor(s) must pledge a personal guarantee.
-Confirmation that the corporation is financially sound, with no liens against it.
-Personal guarantee(s) for 100% of the mortgage loan is required when the borrower is a corporate entity.
-All parties on the application will be responsible for 100% of the loan, irrespective of which party is on title as mortgagor.

CMHC Business For Self – Summary

Everything You Know about CMHC Borrower Eligibility

-Available to self-employed borrowers including:

• Self-employed 100% commission
• Self-employed contract
• Self-employed seasonal
• Self-employed small business owners
• Self-employed professional

CMHC BFS Borrower Requirements

Must demonstrate at least 2 full years of operation of their business.
If a borrower has been working for an extended period of time and recently became self-employed in the same field, performing essentially the same function with the same skill requirements, the 2 year BFS requirement does NOT apply.

CMHC Methods for Confirming 2 Year Minimum Time of Business Operation

-T1 generals supported by the Notice of Assessment.
-Business credit reports.
-Active business bank accounts (must confirm the name of the business owner – i.e. signing authority).
-Business license.
-Articles of Incorporation for a corporation.
-Audited financial statements.
-Financial statements prepared by a practicing accountant.

Prime Rate Announcement: 2.25%

MORTGAGE RATE NEWS

Bank of Canada (June 4^th) has announced to maintain the prime rate at 2.25%. In recent weeks, financial conditions and commodity prices have improved significantly.  Consumer and business confidence have recovered modestly and the underlying macroeconomic risks are roughly balanced. Conditional to the outlook for inflation, the rate can be expected to remain at its current level until the end of 2^nd quarter of 2010. Next rate announcement is July 23^rd 2009.

Frequently Asked Questions (FAQ)

Q. How does “prime rate” affect my mortgage?

If you have a variable mortgage, your rate will be adjusted according to the prime lending rate, which in most cases Canadian major banks follow.  The current best 5 year variable is prime + 0.40%

Q. Why am I hearing the “rates are going up”?

This applies to “fixed rate mortgages”.  Canadian fixed mortgages depend on the bond rate.  We are seeing Canadian bond rate on the rise, which directly resulted in the recent week rate rise.  Don’t wait to get your rate hold if you are switching, renewing, or planning to purchase a property.

Zero Down Strategy (Residential Property) Canada

100% Financing is no longer available through CMHC, Genworth or AIG. However, you can still do 100% financing using the follow methods:

1. CMHC
 insured mortgages will
 allow 
5% 
down
payment
 to 
come 
from
 Non
-traditional 
sources:
a. Gift
 from 
family 
member
b. Borrowed
 funds
–
LOC,
loan,
but 
payments 
must 
be 
included 
in 
TDS 
calculation
c. 5% 
Cash
back
 from 
Lender
–
  Currently
 there are only 
two
 lenders 
who
 allow
 a
 lender 
cash
 back
 to 
be
 used 
as 
down
payment.

 Remember
 the
 rates
  will
 be 
posted rate, 
not
 discounted.

2. Use a B lender (non-traditioanal banks) – much higher rate but allow 100% LTV
Purchase or Refinance. Client must be an employed individual using reported income fully debt serviced, credit >640 or higher.

Home Buying – All Closing Costs and Associated Fees

What It Will Really Cost to Own a Home?

As a quick rule of thumb, any home buyer can expect to pay from 1.5% – 4.0% of the purchase price of their home in closing costs.

Here are a list of expenses and some of them are optional:

Cost of Home
Purchase Price
GST (on new/significantly refurbished homes)

Upfront Costs
Appraisal fee $250 – $400
Down Payment and Deposit
Estoppel certificate fee (for condominium/strata unit)
Home Inspection $300 – $450
Land Transfer Tax
Legal fees and disbursements ($700 – $1200)
Mortgage broker’s fees (Free! o.a.c.)
Mortgage loan insurance premium (can be included in your mortgage)
Prepaid property taxes/utility bills
Property insurance
Survey or certificate of location cost
Title Insurance (do NOT neglect this one!)

Ask us about first time home buyer benefits guide!

Lenders Product Updates and Changes March 2009

Product Changes & Updates for the month of March, 2009

ATB Financial (AB)  
1) Quick Close 30 days special = 5 yr rate of 4.15%
2)  Still do mortgages on Raw Land however no commission
3)  HELOC’s available to 80% LTV – pays 50 bps on funds used 60 days after Heloc is registered
       
Bridgewater Bank   
1)  Advantages of working with BWB – Work with all three insurers.  Will use 80% rental offset on both suites and rental properties.        Will give 2% cash back to be used for anything except DP.  Will use Child Tax Credit to age 12.  Minimum beacon of only 600 for primary applicant.
2)  Introducing the BwB Re-Fi Express program – offers you and your clients speed and convenience. 

Envision (BC)  
1)  Envision has re opened their doors to all mortgage brokers for a limited time 5 yr special.    Valid until April 17, 2009.

CMHC Self Employed Policy Change

CMHC will no longer accept applicants under their Self Employed program who own and incorporate a company. CMHC will still however do “sole proprietor” under that program. If applicant is incorporated they will now have to fully qualify.

Other high ratio mortgage insures in Canada also include Genworth and AIG. However, the lenders must adopt the insurer’s program for you to obtain the insurance.

CMHC – Self-Employment (BFS) Policy Change

CMHC will no longer accept  applicants under their Self Employed program who own and incorporate a company.   CMHC will still however do “sole proprietor”  under  that program.   If applicant is incorporated they will now have to fully qualify.

Other high ratio mortgage insures in Canada also include Genworth and AIG.  However, the lenders must adopt the insurer’s program for you to obtain the insurance.