I was meeting with my business development manager for Canadian Home Income Plan (CHIP) about their reverse mortgage product today, and he shared with me an experience with a client of his bank that is at once shocking but also, unfortunately, not uncommon.
There is a private mortgage lender who advertises on the radio that did a mortgage for a client who was terminal with cancer. The mortgage amount was $500,000. Do you know how much the fees were? $65,000! That is insane! CHIP was able to take care of him in a way that he could enjoy his remaining days with his family in comfort, and provided a much more fair solution, but that is not really the point of the story. It is technically legal to charge those kinds of fees, but it does not make it fair, equitable or correct. (more…)
The Real Estate Board of Greater Vancouver (REBGV) recognised two REALTORS® yesterday for their exemplary commitment to charity and community causes.
New property transfer tax changes affect BC home buyers
The latest BC government budget announced changes in how the property transfer tax is charged. Here is a summary of the changes:
- -The property transfer tax will remain the same until the purchase price exceeds $2 million. Currently, the tax rates are 1% of the first $200,000 and 2% of every dollar above $200,000. Now, at the $2 million threshold, the rate will be 3% of every dollar over $2 million.
- -There is a new program for Canadian citizens and permanent residents purchasing a new home with a value of less than $750,000.
- -The first-time homebuyers program remains unchanged with a full exemption up to $475,000 and a partial exemption up to $500,000.
What impact will this have on the real estate market?
Virtually none. Those buying new homes will save some money. Those buying homes for more than $2 million will have to pay slightly more, but it will surely not affect their ability to buy the home that they want.
A strong fourth quarter closed 2015 as a record-breaking year in commercial real estate sales in the Lower Mainland.
Mortgage down-payment requirements increase
The Canadian government recently made a change that has now come into effect regarding the minimum down-payment required to purchase a home. Previously, 5% was the minimum down-payment required to buy a home under most normal circumstances. (more…)