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Showing posts from February, 2011

Homeowners grants and rebates to consider

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With tax season upon us, anything that can add to a homeowner's bottom line is welcome news. The Vancouver Sun has done some leg work and compiled a list of the best grants and rebates for homeowners and property buyers. Here are my top picks: FIRST-TIME HOME BUYERS' TAX CREDIT (HBTC): This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. For the 2010 tax year, the maximum credit is $750. For more information: www.cra.gc.ca/hbtc BC PROPERTY TAX DEFERMENT PROGRAMS: Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes. Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes. Property Tax Deferment Program for Families with Children. Qualifying low income home owners who financially support children under age 18 may be eligible
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How do “cash-Back” Mortgages work?

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The lender incentive “cash-back” mortgages offer more options for clients with little to no down payment. Here’s how it works; at closing the lender will pay the client a certain percentage of the mortgage. For example, on a $250,000 mortgage with 5.5% cash back the client will receive $13,750. They can use this for the 5% down payment ($12,500), moving costs or whatever else they may need extra money for. I must point out that interest rates are slightly higher to compensate for the cash being given back to the clients. Let’s compare options using a $250,000 mortgage over 35 years with a 5 year term. Type Rate Monthly Payment cash-back ~ 5.19% ~ $1283 No cash-back ~ 4.04% ~ $1108
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Fixed rates on the rise

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5-year Yields Up Again Canada blew away economists’ job growth estimates on Friday. That’s driven 5-year yields to a new 8-month high. This probably won’t have much impact on variable rates in the short-term, but fixed rates are now under pressure. Gross spreads are down to 100 basis points or less on deeply-discounted 5-year fixed rates (120+ is more “normal”). That means we’ll likely see some or most lenders lift rates this week. If you’re contemplating a fixed rate on a home purchase or refinance, consider securing that rate soon to be safe.
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