Archive for July, 2009

Did you know that as a first-time homebuyer you could use your RRSP for your down payment and not pay any taxes on it? More than 100, 000 Canadians use the RRSP Home Buyers’ Plan each and every year! For 40% of first time homebuyers this plan is used as a source of down payment funds.

Under this plan RRSP holders can withdraw up to $25, 000 (that’s $50, 000 for a couple) for expenses in purchasing a home. Buy or build your home with money your already have saved away.

Conditions of Offer:

· You must enter into a written agreement to buy or build a qualifying home

· You must intend to occupy the home as your principal place of residence

· Neither you nor your spouse can own the home more than 30 days before the RRSP withdraw

· You must be a resident of Canada

· You must buy or build your home before October 1 of the year after the year of withdraw

You have up to 15 years to repay the amount that you withdrew under the HBP. That’s only 1/15 a year. The first re-payment would be due 2 years after the withdraw date. When you make a re-payment towards your RRSP withdraw be sure to fill out a Schedule 7 with your income tax return.

How Do You Get Started?

To get started with this process simply complete a Form T1036, remember you can take out as much as $50, 000 per couple as your down payment. Don’t have any RRSP yet? Start to save as soon as you can. It is a great way to save a down payment for your home. Felix Arcon is a great Financial Advisor that can help you get on the right track of investing into RRSPs.

To learn more about other great tips on purchasing your first home please contact us today 1-866-978-9768. Get pre-approved for your mortgage before you start shopping for homes. It will give you the peace of mind and confidence of knowing what you can afford. Are you looking for a seasoned Real Estate Agent? Speak with Jeff Bonner an experience Realtor with many years of experience.

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What did you think of this article? Please, leave comments. We would love to hear from you.

First-time homebuyers may be eligible for a refund of all or part of the tax.

· For agreements of purchase and sale entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.

· For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.

How much is the Refund?

The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue. No interest is paid on this refund.

Who Qualifies?

To claim a refund, you:

· Must be at least 18 years of age;

· Must occupy the home as your principal residence within 9 months of after the date of transfer; and

· Cannot have owned a home, or an interest in a home, anywhere in the world.

In addition:

· Your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and

· In the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

What is the application deadline?

Applications for a refund must be made within 18 months after the date of the transfer.

If application was not made at registration and the tax was paid, qualified purchasers may apply for a refund by completing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes and send it to the ministry.

To find out more on how to buy your first home contact us today at 1-866-978-9768. Also, check out our website for more information on being a first-time homebuyer. Looking for a mortgage now? Find out what you can get approved for, APPLY TODAY!

Original Source Ministry of Revenue

The recession is over.

A new report published today by the Bank of Canada has stated:

“The Bank of Canada is declaring the recession essentially over in Canada and projecting the economy will bounce back at least twice as strongly as before! “

This is monumental news coming out of Ottawa, although some Canadians are still feeling the pinch of the global economic crisis, the bank of Canada reports that figures within the bank state that this effectively means that the downturn that cost Canadians close to 400,000 jobs since October has ended, although the recovery will be modest by historic standards, but none the less underway.

With most European countries trailing behind the Canadian triumph, forecasters say for the global economy to gain complete revival in the European union - could take until 2011.

Hopefully Canada’s stimulus measures and progressive development in wake of the recession will be a model for those countries that have yet to fully recover.

This is terrific news for Canadian’s, although several reports over the last few weeks have stated we are on the road to recovery, with an official source backing these reports Canadians can take comfort in the worst is over.

The Bank of Canada also went on to say:

Some conditions have already returned to normal, including overall financial conditions and household credit, which has been boosted by demand for new mortgages. This has helped shore up Canada’s domestic economy.

With the increase in demand for mortgages, home builders in Ontario are reporting an increase demand for New Home construction. Leading to an increase of Ontarians utilizing Mortgage Financing.

With the shell shock feeling of being told of the negative marketplace within Canada by our own media, its expected that further comfort statements of recovery will be instilled by our government to reassure the Canadian population that Canada “Is back in Business” .Today’s announcement from the governing body of the Bank of Canada will hopefully be the first of many reassurance messages yet to come.

If you would like to find out more about the Ontario Mortgage Market and if it’s the right time for you to buy contact us today!

Have you given it thought?

More and more Canadians are looking towards  buying vs. renting. However making that step forward   can sometimes be confusing, until you consider what buying can actually do for you.

Here are some of the freedoms to consider:

* Pride and comfort in owning your own home.

* Ability to customize the home exactly how you want.

* Money that you pay towards the principal on your loan each month increases the % of your home that you own. In effect, you’re paying yourself.

* Mortgage payment stays the same over a set term. If you were a renter, your rent would definitely go up. Can you afford that?

Everyone needs some type of financial securities in their life. Buying a home creates that security. The money you put towards you mortgage every month creates equity, equity that you could cash out in times of personal financial need. If not an equity cash out, then at the very least your home can appreciate in value, thus giving you a better return when / if you choose to sell. If you keep in good standing with your mortgage you may qualify for a 2^nd mortgage, with this lots of homeowners use a 2^nd mortgage to finance large purchases or use it for investment properties. – a terrific way to build your retirement savings.

And the list goes on……..

With these helpful hints, you can see why simply occupying an apartment or rental unit, paying into your landlord’s retirement savings and having no ownership outside a leases terms and conditions dramatically limits your personal financial well being.

It is our goal at BestRateGuys.com to ensure that anyone who is considering buying a home, understands the process and is successful in making timely affordable mortgage Payments each month. We want to see all of our clients succeed in homeownership and carefully relay the pros and cons of each individual situation prior securing financing.

If you want to learn more and if home ownership is right for you, Contact us today! We will tailor an individual report of you current status at no cost or obligation to you, from there we can make an educated decision if home ownership is the right choice at this point in time, if not we can plan for a future application.

You don’t know until you explore your options, contact us today!

What’s used to calculate my score?

Your payment history, on your credit cards and loan repayments ie. Car loan, student loan. Missed payments are reflected on your credit bureau which impacts your credit score negatively.

Collections show up on your credit bureau i.e.. Cell phone and utility companies do not report monthly to your credit bureau however if you have a delinquent account with them they report the collection to the credit bureau. There also could be reports of unpaid rents and unpaid family responsibility.

To obtain your credit score the scoring system looks how close you are to your credit limit.  I.E.. If you owe more than 50% of your limit, there is slight impact on your credit score, if you owe more than 80% then there is a grater impact.

The credit bureau also looks at how often you are looking for new credit and the length of time you have had credit.

For further information on your credit bureau or to order a free credit report which you will receive via Canada Mail visit http://www.equifax.com/contact_us/en_ca

Or call us today to learn more

- The Best Rate Guy’s Team

Are you confident in Canada’s current housing market?

With the flurry of activity in the news lately regarding the current housing market in Canada, there is one word that keeps turning up….. Recovery.

Although there is some negativity in the news regarding job cuts and layoffs, on the most part the recovery efforts from our own standpoint are on a steady climb.

According to the Toronto Real Estate Board, home sales in the GTA rose 27% in June, compared with the same month a year earlier. The Greater Toronto realtors recorded 10,955 sales last month. The June figure translates into a seasonally adjusted annual rate of sales of 100,700.

Western cities witnessed similar gains with sales in Calgary rising 27%, and Vancouver having the second best June ever.

With the majority of Canada’s metropolitan centers reporting favorable and sometimes increased sales statistics, is a welcome change to the negativity in prior months. The positive feedback in today’s marketplace is encouraging customers alike that we are on the road to recovery. So next time someone tells you to think twice before making a choice to purchase in today’s economic crisis, you can stand informed and confident Canada is emerging stronger faster and better.

To learn more about the amazing rate opportunities available contact us today!

The Best Rate Guys Team.
1-866-978-9768 or fill out the contact us now page!

Trying to have all the particulars lined up is a key to a smooth transition into your new home?

Income:

Your income and employment history are a key aspect in receiving a new home mortgage. In most cases your taxes will do but a letter verifying employment will definitely help the new home mortgage process along. Make sure your spouse or significant others records are available if their names are going to be even remotely associated with the new home mortgage. In many cases these records are not needed but having them available will reduce stress.

Savings:

After the recent issues of sub-prime mortgages, lenders are a bit more concerned with how much savings you have in reserve. A home mortgage now requires a look at how many payments you can make if all potential income was lost. In most instances two payments are required. If your particular circumstance has be less-then-perfect, you may be required to demonstrate even more for your new home mortgage.

Down payment:

The power of a good-sized down payment is often underestimated in mortgage deliberations. The more you can demonstrate you are willing to put on the mortgage, the more clout you have as the lender goes about talking new home mortgage conditions.

Utilities:

They may seem like small little bills that don’t carry much weight in new home mortgage consideration but they actually do. They are bills that will be associated with the future running of the home in question. Have at least a six-month record of on time payments to show. In the event that they don’t ask for them that’s ok but at least they are their if they are called for.

If you would like additional information about purchasing your new home please contact us today. Call us toll-free at 1-866-978-9768.

We guarantee you the lowest fixed rate mortgage on your Canadian mortgage. If you find a better fixed mortgage rate we’ll beat it or give you $50 Gift Card.

• Apply for a VERICO Designer Mortgage Inc. fixed rate mortgage. Apply either online, telephonically, fax an application to 1.866.978.9790
• Within 3 days of submitting your application, fax or deliver your renewal offer to our office.
• If we cannot offer you a lower rate on a similar fixed rate mortgage, we’ll give you $50 Gift Card.
• A similar mortgage must be for the same property, term, and loan amount with no penalties.

Program Rules - Lowest Rate Guarantee

VERICO Designer Mortgages Inc. will provide you with the lowest fixed rate mortgage of any licensed lender or pay you $50 Gift Card. Your renewal must be for the same property, term and mortgage loan amount. To receive a competitive mortgage rate either fax or deliver to VERICO Designer Mortgages Inc. a copy of your renewal letter from your existing financial institution. Your renewal date must be within the next 120 days. Your renewal letter must be received within 3 days of your application otherwise the offer is considered null and void.

Eligibility

Guarantee applies to VERICO Designer Mortgages Inc. fixed rate mortgage application written between November 1, 2008 and March 31, 2009. When compared to another lender’s Renewal Offer (as defined below), our fixed rate mortgage will have a lower interest rate or VERICO Designer Mortgage Inc. will either beat the other lender’s rate or pay you $50 Gift Card. VERICO Designer Mortgage Inc. and the competitor’s mortgage must have the same subject property, term, discount points, loan amount. Lowest Rate Guarantee applies to first lien products only. The guarantee does not apply to second lien products. The Guarantee only applies to properties within VERICO Designer Mortgage’s Inc. designated lending areas. The offer does not apply to private mortgages.

How Does This Guarantee Work

You must apply with VERICO Designer Mortgages Inc. then you have three calendar days to return to us proof of your mortgage renewal fixed rate mortgage (same subject property, term, loan amount - the “Renewal Offer”). VERICO Designer Mortgages Inc. reserves the right to verify that the other lender’s offer is accurate.

If VERICO Designer Mortgages Inc. is unable to provide you with the lower fixed rate mortgage and you close the loan with your existing lender on the quoted terms, VERICO Designer Mortgages Inc. will pay you $50 Gift Card. To be eligible for the $50 Gift Card you must mail to VERICO Designer Mortgages Inc. a certified copy of the Mortgage Statement. The documents must be accurate and disclose that the loan closed on the terms and conditions, including rate as previously disclosed in the Renewal offer and proof of product similarity. VERICO Designer Mortgages Inc., in its sole discretion, will make all determinations of eligibility and qualification for payment of this Guarantee. The Guarantee is subject to revision or revocation by VERICO Designer Mortgages Inc. at any time without notice. VERICO Designer Mortgages Inc. is not responsible for system failures, communication problems or connection and server problems, natural or man-made, failed, incomplete or delayed transmissions, technical malfunctions of telephone networks, computer equipment, system or software, computer time and date stamp mechanism, or any combination thereof, or other unforeseeable events beyond the control of VERICO Designer Mortgages Inc.

VERICO Designer Mortgages Inc.’s own fixed rate cannot be considered as competitive. We reserve the right to cancel or change program rules without notice.

There are many reasons that you should choose a Mortgage Broker over Direct Bank Lending. Mortgage Brokers have access to the best mortgage options as we deal with several different lending institutions. We can shop for the best rate in terms of your situation. If you have challenged credit we will work with you to find the best solution.  We also arrange secured credit cards to help develop your credit. If you have been turned down before by a bank we can, in most cases, still secure mortgage financing.

We are an independent option, which means that we work without bias. Mortgage Brokers work for you - not the bank! We ensure that your best interest is in mind throughout the whole mortgage transaction. As we only specialize in mortgages we can save you a lot of money by choosing the right product for you at the best rate.

Mortgage Brokers also will work together with other people. We can suggest a Realtor or Lawyer, or we can work together with the one that you have already suggested. We are local to you area and have thorough knowledge of the neighborhood that you are considering. We also work with many partners such as Insurance Agents, Financial Planners and so many more people. There are a lot of things to consider when getting a mortgage and have all of these connections makes it that much easier.

To get started with arranging financing you will be pre-qualified with a variety of options. This means that you will get a rate and that rate will be guaranteed to up to 90 days. So while you are shopping for homes and the interest rate goes up, you will have the peace of mind knowing you have the secured rate. Also, in most cases your credit will only need to be checked once.

Are you thinking of buying your first home? Why wait, contact The Best Rate Guys today for your pre-approval. If you have any questions please leave comments, we would love to hear form you. How to get in touch with us? Visit our “contact us” link on our website. Thanks for reading!