FIRST TIME HOME BUYING - The Process Made Simple
The process of buying your fist home can be an overwhelming and intimidating experience. My goal is to make this all too often dreaded and scary endeavour as enjoyable and stress-free as possible. I put together this section of the website in hopes of providing you with a simple, user-friendly, informative resource for getting the process started.
Why its a Great Time for you to get into the Vancouver Market...
Government Incentives
If the low interest rates and “properties significantly on sale” weren’t enough to get renters thinking about buying their first home the Government has stepped up to the plate and taken things even further. The Federal Budget 2009, passed on February 3, 2009 offers a $7.8 billion package to homebuyers and renovators which include the following initiatives.
Home Renovation Tax Credit (HRTC): This temporary program provides an income tax credit on eligible home renovation expenses for work performed or goods bought after January 27, 2009 and before February 1, 2010. Homeowners can claim a tax credit for 15 per cent of renovation expenses between $1,000 and $10,000 for a maximum credit of $1,350. Be warned and become educated about this credit as there is no tax credit for less than 1,000. New additions, decks, carpeting, floorings, heating systems and landscaping qualify. Furniture, appliances, tools and maintenance contracts do not qualify.
First-Time Home Buyers' Tax Credit: Provides up to $750 in tax relief to eligible first-time home buyers for costs associated with buying their first home, including legal fees and land transfer taxes.
EcoENERGY Retrofit program: Provides home and property owners grants of up to $5,000 to offset the costs of making energy-efficiency improvements.
Homebuyers' Plan: This is an increase to the RRSP withdrawal limit to $25,000 from $20,000 for eligible homebuyers. The plan, first introduced in 1992, has not had a withdrawal limit increase. Eligible couples can now withdraw up to $50,000. The Board estimates indicate that a couple buying a townhome in Metro Vancouver with a benchmark price of $423,338 will save $7,448 on their mortgage (at a five per cent rate amortized over 25 years) as a result of being able to use an additional $10,000 of their RRSPs.
Interest Rates are the Lowest Ever
Just as you were asking yourself the question, “how low can it go?,” the Bank of Canada has once again slashed its key interest rate to bring it down to the lowest rate in its HISTORY – 1 Per cent. Economists may have been predicting this further cut as the federal government continues to try to stimulate the economy and encourage future home owners to in fact BORROW and BUY.
So what now? It seems unlikely that interest rates will continue to fall much more. The Bank of Canada is in fact predicting possible GROWTH in the 3rd and 4th Quarters. What goes down must go up… so how much longer should you wait? I recommend not much longer. Get into your bank, go see a good mortgage broker and get pre-approved. In most cases you are Guaranteed the rate available on the date that you went (for a limited amount of days).