Archive for February, 2012

B.C. First Time New Home Buyers Bonus

Wednesday, February 22nd, 2012

In its 2012 Budget announced on Feb 21st, the B.C.  Government announced a temporary one-time refundable personal income tax credit worth up to $10,000.

Here are some of the facts:

  • This credit only applies to first time home buyers.
  • This is an income tax credit, not a cash rebate.
  • The tax credit is equal to 5% of the home price, with  a maximum of $10,000.
  • The tax credit is pro-rated based on your income, which means  higher income families won’t benefit ($200,000+ annual income).
  • Eligible NEW homes include: newly constructed and substantially renovated homes purchased from a builder and homes that are owner-built.
  • The tax credit is available from Feb 21, 2010 to March 31, 2013.

Take a look at the  2012 First Time Home Buyers Fact Sheet  PDF

BC first time home buyers tax credit



Home Ownership Expected to Increase

Wednesday, February 8th, 2012

A Recent Study Shows That Renters Could Drive A 12% Increase in Homeownership Over Next Two Years

Vancouver Mortgage BrokerIn a recent online study conducted by TNS Canada for TMG The Mortgage Group Canada, results showed just under one third of Canadian renters are planning to buy real estate within the next 2 years; equivalent to a potential increase of 12% in demand for home ownership. Further findings from the representative sample of Canadians revealed that interest rates have a significant impact on the timing of purchasing.

“The study found that 28% of current renters are planning to buy in the next two years,” stated Mark Kerzner, President of TMG The Mortgage Group Canada. “That’s a large pool of potential buyers poised to have a significant impact on real estate sales and the mortgage industry. Since over half of those buyers indicated they would buy faster if they believed interest rates were to rise, now is when they should be seeking professional mortgage advice, getting pre-approved and locking in an interest rate.”

The study also showed Canadian renters are equally as concerned with mortgage features as they are with mortgage rates. Lawrence Smith, Professor Emeritus in Economics at the University of Toronto noted: “The same percentage of renters indicated the ability to repay with as much flexibility as possible was as important as obtaining the lowest possible mortgage rate. This demonstrates the strength and quality of Canadian borrowers. It means Canadians are really thinking about paying off mortgages as opposed to what we’ve seen with sub-prime mortgages in the US which was all about rate, cash-flow and just getting approved.”

In response to the study’s finding that nine out of ten renters planning to buy real estate would use the services of a mortgage broker, Kerzner added: “Buyers recognize mortgage brokers provide a fast, efficient way to access a wide variety of mortgage options and solutions, in most cases at no additional cost. Saving time and money is important, especially to first-time purchasers.”

Summary of key findings:

· 28% of current renters are planning on buying in the next 2 years; one third of those plan to buy in the next 12 months. This is equivalent to a potential increase of 12% in homeownership demand.

· 54% indicated their timeframe would change and they would buy sooner if they believed interest rates were to rise 2% or more in the next 12 months.

· 91% of renters planning to buy real estate would likely use the services of a mortgage broker.

· When asked where they intend to seek information about mortgages, just as many renters indicated they will contact a mortgage broker (68%) as their bank (66%).

· 34% indicated the most important factor in choosing a mortgage would be the ability to repay with as much flexibility as possible; 33% indicated it was the lowest possible rate.

· 79% of renters planning on purchasing indicated they are educated in the buying process and aware of being able to use RRSP’s towards a down payment.

About TNS Canada:

TNS Canada is one of the country’s largest and most experienced independent research organizations, having served marketing and opinion research needs since 1932.

About TMG The Mortgage Group Canada:

Awarded 2011 National Mortgage Broker Network of the Year, TMG The Mortgage Group Canada is in its 22nd year in the industry making it one of the longest operating national mortgage brokerages in Canada with over 700 mortgage professionals.

Averbach Mortgages is affiliated with The Mortgage Group Canada.  If you are thinking about making a purchase in the next few months, give us a call.  We will help you get a pre-approved mortgage and lock in the best rate possible. Our mission it to MAKE IT EASY for you to get a great mortgage.