Property Transfer Tax Changes

By now you should have heard about the changes in the latest budget regarding the PTT. Here is what we know.

1.            There are no changes to the first time home buyer exemption limits;

2.            All buyers (whether first time buyers or not) no longer pay PTT on purchases of NEW homes up to $750,000 in value; note the buyer must be a Canadian citizen or a permanent resident; there is a partial exemption for homes between $750,000.00 and $800,000.00;

3.            PTT has changed so that there is now a 3% tax on amounts over $2,000,000.00. The 3% tax is only paid on the amount over $2,000,000.00, not the full price.

Please let me know if I can help you understand any of the changes above! #mortgagelove

Michael James

DLC Corporate Blog – How Double Income Families help drive the RE market.

No doubt you have thought about the affordability of the current Canadian housing market and chances are you have even thought about where houses prices will go in the future! Maybe you have parents that tell you stories of a different time when they bought their first house for less than you paid for your first car. Inflation accounts for some of the increase in prices, but there has to be something else (most likely lots of something elses).

In a recent study completed by Statistics Canada called: Employment patterns of families with children, 1976 to 2014, the study noted that…

“In 2014, 69% of couple families with at least one child under 16 years of age had two working parents, up from 36% in 1976.”

Said in another way (as it relates to affordability of housing)

In 1976, 36% of couple families with at least one child under 16 years of age had two working parents contributing to household income (including the mortgage). In 2014, this number jumped to 69%.

With almost 7 out of every 10 families having the ability to qualify for their mortgages using two incomes, it is no wonder that over the last 30 years house prices have increased significantly. As income is the main driver in affordability, double income families have more income than most single income families, so they can afford to spend more on housing.

So what does all this mean to you?

Well… if you are a single person or one half of a double income family, housing prices continue to go up, making housing less affordable. If you are considering getting into the market, making sure you look at all the mortgage options available to you and having a plan to pay off your mortgage is essential.

We here at Dominion Lending Centres would love to discuss your specific financial situation in order to help you arrange financing to purchase a home that suits your personal and family needs.

Contact us anytime!

TOP 8 BENEFITS OF USING A MORTGAGE BROKER

When shopping for a mortgage, many home buyers enlist the services of a Mortgage Professional. There are several benefits to using a Mortgage Broker and I have compiled a list of the top 8:

1. Saves you time – Mortgage Brokers have access to multiple lenders (over 50!). They work with lenders you have heard of and lenders you probably haven’t heard of. Because their relationship with lenders is ongoing, Mortgage Brokers know what is available in mortgage financing and will be able to advise you on what your lending options are without all the leg work that you would have to do in order to find a small percentage of information that a Mortgage Broker already has in hand.

2. Saves you money – Mortgage Brokers, if they are successful, have access to discounted rates. Because of the high volume that they do, lenders make available discounted rates that are not available directly through the branch of the lender that you go to.

3. Saves you from becoming stressed out! – It can be very daunting to find a mortgage. A Mortgage Broker takes on that stress for you. Your Mortgage Broker will make sure all the paperwork is in place. They will keep in good communication with you so that you know what is going on with your mortgage and will keep you up to date with any complications so that there are no surprises.

4. Gives you access to lenders that are otherwise not available to you – Some lenders work exclusively with Mortgage Brokers. In these circumstances, the layman does not have access to these lenders and, therefore, does not have the option to use discounted rates and mortgage products that these lenders offer.

5. Services are free – Mortgage Professionals are paid by the lender and not by you. This is not a disadvantage to you. A good Mortgage Broker will ALWAYS have the best interest of the client in mind because if you, as a client, are happy, you will go tell your friends about the service you’ve received from the Mortgage Professional you work with. Mortgage Professionals rely on referrals, which means that if you are a happy customer, and you got the best deal available, you will tell your friends and family about them which will result in referrals and potential future business.

6. Take on every challenge – As Mortgage Professionals, we see every scenario out there and work to make sure that every client knows what is available to them for financing options for a mortgage. Damaged credit and low household income might be a deterrent for the bank, but a Mortgage Professional knows how to approach the lender and has the relationship to make sure every client has a plan and strategy in place to make sure there is a mortgage in their future.

7. The Mortgage Brokerage industry is monitored by governing bodies – Nowadays, as Mortgage Brokers, it is extremely important to have principles and values that are based on the best interest of the client. In fact, in order to become licensed, the Mortgage Professionals need to be well versed in the ethical and upstanding values that are outlined through the Financial Institutes Commission, a provincial governing body that is a watchman for this industry. FICOM’s mandate is to make sure every Mortgage Broker walks in integrity and in the best interest of their client.

8. The Mortgage Broker has a better understanding of what mortgage products are available than your bank – Interestingly, a Mortgage Broker has to be licensed and cannot discuss mortgages with you unless they are licensed. This is unlike the bank who can “internally train” their staff to sell the specific products available from their bank. The staff at your bank do not have to be licensed Mortgage Professionals.

While this is not an exhaustive list on the benefits of using a Mortgage Professional, it is compelling to see the benefits of using a Mortgage Professional rather than putting a mortgage together on your own.

At Dominion Lending Centres, we have an excellent rapport with the lenders we introduce our clients to. Our customer service is reflective of our relationship with our lenders. We are always professional and we always make sure our clients know every viable option they have for mortgage financing.

Courtesy of Geoff Lee of GLM Mortgages