Home Ownership in Canada: A Chronological List of Programs for Buyers
1954: Introduction of the Mortgage Loan Insurance- by the Canada Mortgage and Housing Corporation
1971: Principal residences were exempted from Capital Gains in The Income Tax Act
1992: There were two programs created by the federal government.
The first was the Home Buyers’ Plan (HPB) allowing buyers to withdraw up to $20,000, tax-free, from their Registered Retirement Savings Plan (RRSP) and use it as a down payment to buy or build a home.
The second, was a test program called the First Home Loan Insurance Program (FHLIP) which decreased the down payment needed to buy a first home from 10% to 5%
1994 The federal government announces the HPB as a permanent program.
1998 The FHLIP was replaced by a permanent program. And instead of 10%, all buyers were now allowed a 5% downpayment.
2006 The CMHC launched CMHC Flex 100- (Remember the zero-downpayment mortgage?) a mortgage loan insurance product for owner-occupiers that allows them, under certain conditions, to buy a property by taking out a loan up to the total value of the property (no down payment required).
The amortization period for owner-occupiers were also extended to up to 40 years, under certain conditions.
2008 The maximum amortization period for new mortgages was reduced to 35 years and the minimum down payment increased from 0 to 5 per cent.
2009 The maximum amount that can be withdrawn as part of the HBP increased to $25,000
2011 The maximum amortization period for new mortgages was reduced to 30 years
Adapted from and Article from the Market Analysis Department of the QFREB
Sources: Government of Canada, CMHC, Industry Canada and the Department of Finance Canada.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
Pre-approval: How it can benefit you as a home buyer
Updated from our First Time Buyer’s Archive. Originally posted on Jun13, 2007
Imagine falling in love with a home, making and offer only to find out later that you are not eligible for such amount?
Or another scenario: Competing with other buyers over your dream home, to find out the vendor accepted the other buyer’s offer JUST because they were already pre-approved.
It does happen. Often.
Understandingly, any vendor will favor a buyer who is prepared with a letter from the bank Continue reading: Pre-approval: How it can benefit you as a home buyer
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
Asking Price: Comparative Market Analysis vs Municipal Assessments
Image by Corbis
The asking price of a home should reflect the current market price, which is calculated quite differently from the municipal assessment. The city evaluates properties every three years (meaning they are often behind the going market values), and they base their assessments on the property itself and its neighbourhood.
To determine optimal asking price, a homeowner should get a comparative market analysis (CMA). This is done by Continue reading: Asking Price: Comparative Market Analysis vs Municipal Assessments
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
Asking (Selling) Price Less Than Municipal Evaluation?
Sometimes you find properties that have a municipal evaluation higher than the asking price. In most cases, it’s the other way around. So as a potential buyer, you might wonder whether or not this is an error — how can it be that the person is selling for less than the municipal evaluation Continue reading: Asking (Selling) Price Less Than Municipal Evaluation?
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
Home Buying Process: Closing Costs
To first-time buyers, closing costs are a mystery; most people have a slight idea of what they are, but don’t know what’s specifically involved or how much the cost will be. Many think closing costs refer to the notary fee, end of story. In reality, though, there’s more to it than that.
In addition to a down-payment on your mortgage, you (the buyer) will need to put aside a little extra for costs related to a home purchase. Here is a list of the usual costs involved
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
Q & A: How Many Buying Brokers Can You Hire?
This is the first freshly written post of 2012. I hope you all had a great new years! Today we’re posting a video shot last month, and here we discuss how many agents/brokers you (the potential buyer) can employ when looking for a property. http://www.youtube.com/watch?v=YqDSNkCPEgs A reader sent me the question on What’s the limit [...][Video] My First Tutorial: How to use the buyer’s portal
So, after countless of times promising myself I would sit down and create a simple tutorial on How to Use the Client’s Portal, I finally got to it!
I found this really cool way to make video-tutorials with Screenr.com, impressively easy to use. Hey, you could impress your clients and friends too ;)
And here it is…
Useful tips on how to view, classify and organize listings by emails.
www.youtube.com/watch?v=bX1JXl7vtLQ
If you like it, share the love.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
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Pssst: Did you get my flyer?
It is now thursday, and if my calculations are right and you live in (one of ) the areas where I advertise, you should have received my flyer on your mailbox.
If you are wandering what it is, the one side looks like this…
The other side will change monthly, with a different message.
I’ve never been much of a flyer advertiser, but this time I’ve decided to concentrate on the areas where I sell the most. So now, new pictures, new flyers and let’s see what gives…
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889
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- Where did your email message go?
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No Escrow in Montreal
We don’t hear about Escrows in Montreal. Believe it or not, my fellow Real Estaters (I think I just created a new word) from other provinces and countries.
The first time I heard, actually I didn’t hear it, I READ the word Escrow it was in a Condo Buyer’s Guide I picked up for my clients, and right next to the glossary description of escrow there was a note: Not applicable in Quebec.
Naturally I didn’t take interest on that word, up until I had to work with someone who demanded a escrow company and their contact number.
“A what? Escrow ??….Hmm, I think I’ve heard that before. Not sure where. Let me look into it.”
I’ve called two friends in the industry that have been in the business for about 20 years, and then I talked to my broker and there it was, the same answer: “A what? Never heard of it.”
Apparently, and up until today, there are no escrows companies in Montreal. Not it is used in the real estate transactions here. Maybe they are listed under a different name? If so, please enlighten us in the comments section.
So far, we haven’t have a demand for it. Good news for litigation lawyers.
PS: If you’re itching to know what escrow is, here is the wiki definition.
Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889
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What’s Included on the Closing Costs?
To first time buyers, closing costs are always sort of a mystery: They have a slight idea of what it is, but don’t know what’s specifically involved or how much it will cost. Many people think it is just the notary fee and that’s all.
Sorry folks, that’s not just it.
In addition to the mortgage down-payment, you (the buyer) will need to put aside some money for the costs related a home purchase. What are these closing costs?
Here is a short list of the basic expenses you can anticipate:
- Professional Home Inspection: Only if it’s part of your offer.
- Legal fees (Notary): Costs involved in conducting a title search, drafting the title deed and preparing the mortgage, registration fees, etc.
- Property Taxes and Utilities (prepaid): Sometimes the seller may have prepaid some bills before the closing date, which you will have to reimburse.
- Land transfer tax - also known as welcome tax. This cost you don’t have to pay at the closing day, usually the city will send you a bill about a month (or so) after the signing date.
- GST & Provincial Tax – Only if you’re buying a newly constructed home.
- Home Insurance. The bank will ask you to insure your home – because they really care about your well being.
- Miscellaneous: Little repairs you might want to make to the property, etc.
There is one more: Moving costs. I don’t often include it on the list because it maybe a helping friend or a relative will help you move for free, in which case you’re very lucky- and a couple of hundred dollars richer :)
Before you ask for prices…
I made sure not to place any values to the services mentioned above just because (exact) prices change often, and revising articles to change prices are not really my thing.
Your agent should give you a break down of the fees.
Don’t have an agent? We’ll be happy to help.
Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying, selling or renting contact Deya at: 514.917.7889
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