- Business Administration Degree with a Major in Marketing from Red River in 2007
$5000 First Time Home Buyer Tax Credit
The First Time Homebuyers Tax Credit is available for qualifying first time homebuyers who purchased a home after January 27, 2009.
You can claim an amount of$5,000 for the Home Buyers Tax Credit (HBTC) if both of the following apply:
you or your spouse or common-law partner acquired a qualifying home; and
you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).
the home you acquired must be located in Canada and includes existing homes and new construction. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as condos all qualify. The home must be owner occupied as a principal residence no later than one year after it is acquired.
You dont have to submit documents supporting your purchase transaction with your income tax and benefit return, but you must make sure this information is available if Revenue Canada requests it.
Note this is a non-refundable tax credit. If the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund.
For more information, please visitFirst Time Homebuyers Tax Credit.
Why you should know what a MONOLINE lender is...
Monoline Lender Definition: Monoline lenders (aka non-deposit-taking lenders) are an important cog in the mortgage market. Their mortgage products andlow pricing improve consumer choice and force our dominant banks to be more competitive.
Being a part of VERICO One Link Mortgage I have access to over 50 different lenders which include banks, credit unions, monoline lenders, alternative lenders, and private lenders. As the largest mortgage brokerage in Manitoba along with being a part of our national network VERICO, I am able to offer the most competitive mortgage rates. The lowest rates we advertise are often offered by Monolines. Some reasons for that are the fact they strictly do residential mortgages and have low overhead costs. So why do people ultimately choose a monoline?
Frequently Asked Questions:
Q: Are there any risks to deal with a Monoline?
A: No, there really arent any. Monolines are regulated by the federal government just like the major banks so they must follow similar lending guidelines and regulations. Fun fact, many Monolines receive their funding from major banks!
Q: What if a Monoline decided to leave the market place?
A: Another lender would take over their mortgages and the terms and conditions of their existing mortgage stays intact. A great example is a company I used to work for, FirstLine Mortgages, they decided to leave the marketplace and CIBC took over their book of business and services all of those mortgages.
Q: What are some other benefits to using a Monoline than just a low rate?
A: Well monolines typically have smaller penalties in the event you have to break your mortgage, pre-payment options that are typically better than the banks, monolines register a standard charge term on the title of your property which allows you to move to any lender once your term is up to take advantage of the best rates on the market. Banks and credit unions tend to register collateral charges which would make you incur legal fees to transfer your mortgage at the end of the term.
Here are some advantages of monoline lenders:
They focus on one line of business: mortgages. This allows them to focus on providing the best possible mortgage products
No bricks and mortar buildings, they are virtual banks essentially, making their overhead costs lower passing on savings to the consumers.
The mortgage industry is heavily regulated by the government now more than ever, so whether youre dealing with a major bank or monoline lender they are subject to satisfying the same guidelines for qualifying and approving customers.
Mortgages are registered on title as a standard charge and not collateral charge which means you can transfer the mortgage to another lender at the end of the term without incurring legal fees (providing there isnt a 2nd mortgage and/or secured line of credit on title)
Rates are often lower than the major banks (no posted rates like the banks) which typically result in a lower penalty should the mortgage be discharged prior to the end of the term. Fun Fact; the average a Canadian is in their mortgage for is 3 years.
Really good pre-payment options available
They also offer online access to your mortgage as well as customer service departments to take on telephone inquiries. I always tell my clients to contact me for any mortgage questions and I will be able to help OR lead you in the right direction. Most of the time I can have a client consent form signed by the borrowers and deal with the lender on my clients behalf.
Some disadvantages people have expressed to me over the years would be that some people physically like to walk into their bank and speak to someone. My solution for that is my office is always open to my clients to speak about their mortgages and better yet I can be reached outside of regularbank hours. The other comments I have had arepeople like to have everything in one placewhich is completely understandable, however, if you can get a better rate and mortgage product elsewhere does it become as important if youre saving money?
As a broker it is my job to make sure my clients pay the least amount of money over the term of their mortgage and for years after that. Every circumstance is different and I make sure I evaluate every clients needs and make recommendations oflenders based on their needs, most often it is a monoline lender. Fun Fact, I have my own mortgage with a monoline.
*Some monoline lenders I use; MCAP, RMG, First National, Merix, Lendwise, LifeCycle, CMLS, and Radius.
Calling All First Time Homebuyers- Don't Become House Poor!
When looking to purchase a home, two of the most common questions Im asked are, 1) Whats the best rate? and 2) How much do I qualify for? Ill address number one in my next blog post but for now Id like to focus on number two.
As a first time homebuyer, theres never any harm finding out how much you qualify for. With todays stress test used qualify mortgages at a rate almost double what youre actually paying and prudent underwriting requirements, your max purchase price may be what youre looking to spend anyway. HOWEVER, just because you qualify for that amount doesnt mean youre going to want to spend it. What I like to do is let you know what you qualify for and how much the associated payments will be. Then I ask how much are you willing to pay monthly? for your mortgage and other monthly homeownership costs. A lot of first time buyers will then take a different approach to how much they actually can afford. You dont want to end up being house poor. You want to be able to go out for a couple patio drinks with friends on a Friday after work or play on your rec sports team without going into debt. Life is all about balance.
So lets break down the fixed monthly expenses you can expect when buying a house.
1) Mortgage principal and interest payment
2) Property tax (you can deduct $700 from the gross taxes for you primary residence)
3) Life/Disability insurance (the younger you are the cheaper it is)
4) Utilities: Hydro/Gas, Water, Cable/Internet
5) Property insurance
When first time buyers get a mortgage payment quoted to them, that payment is just your principal and interest mortgage payment, it doesnt include all of the other expenses a house brings.
So using a real example;
Min Down payment (5%)
Estimated Closing Costs (2%)
** Extras Include:
NOTE: this is just an example and will fluctuate depending on house and area but is a good guideline.
This example is a good indicator of what types of extra expenses are included in a house that may have been overseen. Make sure you work with a mortgage professional to help you figure out what is manageable for you so you dont find yourself house poor.