BUYING A HOME
Whether it is your first home, an investment property or your retirement residence, Lorne can help you make a well informed decision. His expertise is actually utilized by other realtors to represent their clients!
FOR THE FIRST TIME BUYER
Are you a Canadian citizen? Permanent resident of Canada? Have you resided in B.C. for the 12 months prior to your home registration? Have you NEVER owned a principal residence anywhere else in the world? Congratulations! You are an F.T.B.
Here are some options to help you get started down the home-ownership road.
1) The Home Buyers Plan.
In this program, the first time buyer can withdraw from their RRSP(s) up to $20,000 (without the 10 to 20% tax holdback) for their downpayment. What's the catch? You will have to pay yourself back the amount you have withdrawn over the next 15 years. For example, if you withdrew $15,000, you would place $1000 each year into your RRSP. For each year you do not payback $1000, you would pay taxes on that $1000. At the end of 15 years you would have $15,000 again in your RRSP and the home as well!
THIS PLAN CAN BE USED OVER AGAIN under the hardship rule (divorce etc.), provided the first amount has been paid back.
2) Using RRSP's YOU DON'T HAVE?
Yes you can! This is a government program most people are not aware of. In short, if you have not been able to maximize your RRSP contributions over the last 7 years, you can accumulate that 'shortfall' and generate a tax rebate provided it is used to buy a residence. The government GIVES YOU BACK THE MONEY YOU WOULD HAVE OTHERWISE PAID IN INCOME TAXES!
The timing of your application is important, so call Lorne for more information.
3) Property Transfer Tax (PTT) -
Forgiven for first time buyers that have less than 30% down and...
This is a B.C. tax and charges home buyers 1% on the first $200,000 of purchase price plus 2% above $200,000. First time buyers do not have to pay this tax provided their purchase price is less than $325,000 in the Greater Vancouver area. Over $325,000 ? the tax payable will be reduced based on this formula:
PTT payable x ($325,000 - purchase price) = PPT tax reduction
$25,000
Lorne's experience has enabled him to raise this price ceiling slightly, so be sure to call him for details.
ZERO DOWN !
There is no longer a mandatory downpayment requirement! Competition in the finance industry has resulted in a variety of mortgage products, some requiring no downpayment. Job history and credit rating are important though
BUILDING? RENOVATING? - Lorne has many connections to qualified people.
STRATA PROPERTIES
There are several good apartments and townhouses on the market today and after the 'leaky' condo fiasco it is important to know which ones are the good ones. Lorne has compiled a great deal of knowledge in this area and can save you a lot of time and money. Buy with confidence!