Are you a first-time home buyer?

You are receiving great news today! The provincial government has reduced the tax burden for first-time buyers. This is effective as of February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyer’s Exemption program, qualified first time home buyers can now purchase a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption of this program continues and will apply to homes valued between $475,000 and $500,000.

Government Estimates:

• 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy a home
• This measure will cost $8 million in lost tax revenue each year

The Real Estate Board of Great Vancouver (REBGV) and the BC Real Estate Association have actively lobbied to make home ownership for affordable for first-time buyers.

• 2008, government increased threshold to $425,000 from $375,000
• 2005, government increased threshold to $325,000 from $275,000

PTT is calculated at a rate of 1% on the first $200,000 and 2% on the remaining value of the purchase price.

For the entire news article from REBGV on the government reducing the tax burden, click here.

This is big news for you as a first-time buyer! If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at info@brokersmart.ca

Ever think you could use your RRSP for contribute to your down payment? As a first time home buyer, it can be a challenge to provide a down payment for your dream home. The Metro Vancouver New Home Guide published this article about how you can use your RRSP for a down payment on your first home.

A down payment is a lump sum you are required to contribute to the home’s purchase price. It’s common to contribute a 20% down payment. This is classified as conventional. A high-ratio is a down payment of less than 20%, requiring default insurance.

Need a larger down payment? One way is by using your RRSP savings, under the federal’s Home Buyer’s Plan. As a first-time home-buyer, you may be eligible to make a tax-free withdrawal of up to $25,000. If your spouse is eligible as well, that will be a combined total of up to $50,000.

You are required to repay your Home Buyer’s Plan withdrawal into your RRSP within a period of no more than 15 years. The first minimum annual repayment deadline is 2 years and 60 months after the date of the withdrawal. Although, you are able to pay earlier than that first repayment deadline. The minimum annual repayment amount is 1/15 of your original Home Buyer’s Plan balance. If you repay at least the minimum each year, there will be no tax payable.

Laura Parsons, mortgage expert, BMO Bank of Montreal says, “If you are able to provide a bigger down payment, it’s a significant way of helping you pay less interest over the life of your mortgage. Also, with a down payment of at least 20 per cent, you avoid paying mortgage default insurance.”

“Parsons adds that Canadians should be considering the benefits of choosing a shorter amortization as a way to decrease total interest costs and to begin building home equity sooner.”

If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at info@brokersmart.ca – we will be happy to help you!

The Real Estate Board of Greater Vancouver (REBGV) have released the January statistics for the housing market. Currently the market is seeing steady trends as it starts the new year.

Key Stats from the Report:

• Total Residential Property Sales: 1,760, a 9.9% decrease from December 2013 
• Total New Listings: 5,345 for detached, attached and apartment properties, a 4.2% increase from January 2013
• Benchmark Price: $606,800, a 3.2% increase compared to January 2013
• Detached Properties: sales reached 728, a 34.3% increase from January 2013, benchmark price is $929,700, a 3,2% increase from January 2013
• Apartment Properties: sales reached 753, an increase of 30.7% compared to January 2013, benchmark price is $371,500, an increase of 3.7% compared to January 2013
• Attached Properties: sales reached 279, an increase of 19.7% from January 2013, benchmark price is $457,500, an increase of 1.7% from January 2013

The President of the REBGV, Sandra Wyatt says, “The Greater Vancouver housing market has been in a balanced market for nearly a year. This has meant steady home sale and listing activity accompanied by stable home prices. If you’re looking to sell your home in a balanced market, it’s critical that your list price is reflective of current market conditions.”

*All statistics are from the Multiple Listing Service® (MLS®)

To view the full REBGV January Statistics report, click here.

If you have any questions regarding the above, please give us a call at 604-588-4466 or email us at info@brokersmart.ca

The Bank of Canada has released a summary of their January 2014 edition of the Monetary Policy Report. This report is published on a quarterly basis reflecting the behaviour and the outlook of the Canadian economy.

Source: Google Images

Here are a few key facts from the Monetary Policy Report:

• In 2013, real GDP grew by 1.8%, expected to grow to 2.5% in 3014 and 2015
• Expectation of inflation dropped as projection moved below the 2% target
• Stronger U.S. demand will help to boost exports and business investments, allowing for continued and strong growth over the next few years

The Canadian economy is gradually returning to its full production capacity in both 2014 and 2015.

For more information and view the entire Monetary Policy Report Summary, click here.

If you have any questions regarding the above, please contact us at 604-588-4466 or email us at info@brokersmart.ca

Painting may be the most affordable way to give a room a new look -whether you’re updating your current home to get it ready to sell, or planning on painting in your new home – but it can be an overwhelming decision. Thanks to Style At Home, they have shared their expert painting tips for you to paint with ease.

1. Selecting a Colour

Grab those paint chips! Be sure to have a look at the chips in the artificial and natural light. Test the colour you like by painting a couple coats in a few different areas of the room (3-foot by 3-foot) and then look at the colour in the morning, afternoon and night.Choose a good quality paint as it will create less splatter and will need less coats – saving you time!

2. Preparing 

For the best paint adhesion, wash the walls, doors, and trim with a gentle solution, rinse with a damp cloth, and allow it to dry thoroughly. Sand the doors, window sashes and trim for a smooth finish before painting. To fill gaps and cracks use a molding compound. Also, remove doorknobs, cover plates, and ceiling-light rings for a clean paint job.

3. Priming and Painting 

For the perfect finish, begin with a primer. Using a trim brush, ‘cut’ a border along the ceiling and the baseboards. To fill the entire wall, use a roller and start in the middle of the wall. This allows for excess paint to be spread out among the rest of the wall evenly. Apply at least two coats to finish all surfaces, including the walls, doors, windows, trim and baseboards.

4. Cleaning Up 

For oil-based brushes and rollers, rinse the brushes with solvent, then with warm soapy water until the water runs clean. If you’re using latex paints, skip the solvent step. Wrap the brushes in heavy paper when completely finished.

Now you’re all done! Once your paint job is completely dry, start moving the furniture back in the room, add some decor, hang your pictures and watch the room completely transform!

For the full article on Style At Home’s Expert Painting Tips, click here.