IMMIGRATION & Mortgage
10
The Notary
Corner
By Editha Corrales Nelson
Immigration Consultant, Notary
Public, Mediation / Arbitrator
PHILIPPINE ASIAN NEWS TODAY March 16 - 31, 2019
NEW PROGRAM PARTNERS WITH FIRST-TIME
HOMEBUYERS AS THEY ENTER THE HOUSING MARKET
make extra payments or repay it in or permanent resident for at least five purchase to BC Housing for
approval.
Saving for a mortgage down full at any time without penalty. The years.
• Have resided in British
Applications for the program will
payment can be hard for first-time loan must be repaid in full when the
Columbia
for
at
least
one
year
be
accepted
starting Jan. 16, 2017,
home
is
sold
or
transfered
to
another
homebuyers. The B.C. Home Owner
immediately
preceeding
the
date
of
for
purchases
that will close on or
owner.
Mortgage and Equity Partnership
after Feb. 15, 2017.
To be eligible, buyers must be application.
program contributes to the amount
• Be a first-time buyer who has
What information will I need to
first-time homebuyers have already preapproved for an insured high-
not
owned
an
interest
in
a
residence
apply?
ratio
first
mortgage
(mortgage
down
saved for their down payment,
Buyers can begin gathering the
providing up to $37,500, or up to 5% payment is less than 20% of the home anywhere in the world at any time.
• Use the property as their documents they’ll need to submit an
of the purchase price, with a 25-year price). On completion of the sale,
loan that is interest-free and payment- program funds will be advanced and principal residence for the first five online application. Buyers will need:
1. Proof of status in Canada and
free for the first five years. Through the loan will be registered as a second years.
Purchase
a
home
that
has
a
residency
in British Columbia.
•
mortgage
on
the
property’s
title.
the B.C. HOME Partnership program,
2. Secondary identification (must
Other programs are available to purchase price of $750,000 or less
the Province is investing about $703
include your photo).
million over the next three years to help help first-time buyers save on property (excluding taxes and fees).
3. Proof of income and tax
• Obtain a high-ratio insured
an estimated 42,000 B.C. households transfer tax. The First Time Home
first
mortgage
on
the
property
for
at
filings.
Buyers
Program
can
save
first-time
enter the market for the first time.
_________________________________________________________________
least 80% of the purchase price.
4. Insured first mortgage pre-
when purchasing
By: Mylene
Lim
“The first step into the market can buyers up to $7,500
• Have a combined, gross approval.
to $475,000.
Or,
be the hardest step, so our government a home valued up Mortgage
Specialist
Strictly Taken from the BC
will partner with homebuyers to first-time buyers can access the Newly household income of all individuals
on
title
not
exceeding
$150,000.
Housing
website
Built
Homes
Exemption,
which
can
help them achieve their minimum
A
Canadian
Certified
Immigration
The
2019
federal
budget
was
released
last
week
and
in
it
is
a
new
incentive
for
first-time
homebuyers.
Called
the
• Have saved a down payment
down payment,” said Rich Coleman, save buyers up to $13,000 in property
Consultant,
Certified
Senior
Advisor
amount
at least
to the
transfer
tax when
newly
First-Time
Home
Buyer purchasing
Incentive, a the
program
is geared
to equal
help with
the loan
housing affordability through what and
is a
Minister of Natural Gas Development
Notary
Public
in
the
City
of
Burnaby,
Editha
amount is for aimed
which towards
the buyer helping
applied. prospective homebuyers get into the
or subdivided
and minister Responsible for Housing.
termed constructed
as “shared equity
mortgage”. home
This program
Nelson’s preferred areas of practice
What
do
I
do
and
how
do I in Corrales
worth
up
to
$750,000.
“This partnership can help lower housing
their
market, which have become increasingly unaffordable, especially
and
Vancouver.
The
are Toronto
Powers of
Attorney,
Wills Preparation,
The B.C. Home Owner Mortgage apply?
monthly costs in the first five years,
government says that $1.25 billion has been earmarked for the program over the
next three
and about
International
Legal years
Documents,
Name
Step 1: Get preapproval for an
and help make home ownership more and Equity Partnership program will
Changes,
Affidavits,
Letters
of
Invitation,
100,000 Canadians are expected to benefit from it. There is another $100 M in additional financing to be made
affordable. This partnership program start accepting applications Jan. 16, insured first mortgage from your Statutory Declarations, Drafting of Business
available
through third-party groups, including
non-government
institutions.
financial
lending institution.
2017.
is another important way we’re taking
Contracts and other notarial services. For an
Step 2: Apply to BC Housing appointment, please call: 604-777-2757.
B.C. Home Owner Mortgage and
action on housing affordability.”
the B.C. Home
Mortgage
Equity
In a gist,
here Partnership
are the key program
points of details
the CMHC for First-Time
Home Owner
Buyer Incentive:
During the first five years,
The following should not be construed
and
Equity
Partnership
program
Am
I
eligible
for
a
partnership
as
providing
legal advice and information
no monthly interest or principal
in
this
column
is intended only as a general
loan.
If
you
are
eligible,
you
will
loan?
payments are required as long Down
as Payment from RRSP
guide
and
should
not be applied to specific
receive confirmation of eligibility and
The program
the home remains the homebuyer’s
First time homebuyers
can supports
now use eligible
up to $35,000
of their RRSPs to put toward their
down payment,
an
increase of
circumstances
without
further consultation.
principal residence. After the first five first-time homebuyers who are Homebuyer’s Kit, which includes
$10,000 from the previous cap of $25,000. Buyers will have up to 15 years to pay back the money they borrowed
years, homebuyers begin making approved for an insured high-ratio first information for your lender, real estate For more information on the subject, contact
Editha Corrales Nelson at 604-777-2757 or
from their RRSPs.
monthly payments at current interest mortgage. To qualify for the program, licensee, and lawyer/notary public.
Step 3: Find your home and email: [email protected].
rates. Homebuyers will repay the loan all individuals on title must:
to Loan
up to
10%
of Purchase
Price provide the details of your planned
been
a Canadian
citizen
• Have
over the remaining 20 years, but CMHC
may
First Time Homebuyers Incentive
With this program, the federal government, through CMHC, will provide a loan of up to 10% of the purchase price
for newly constructed properties or 5% to existing properties. The decrease in mortgage amount from financial
institutions may marginally stretch the buyers’ purchasing power, depending on their purchase price and down
payment.
Caveats To
This RRSPs
Incentive
payment for the purchase.
of their
to put toward their is $120,000 or less.
CMHC’s
exposure will
be household
CMHC is incentive
is a or loan
f. The
down
increase of
a. The
new payment,
First Time an Homebuyer
Incentive b. is The
limited
to recipients
whose
income
$120,000
MYLENE LIM
limited
to
4x
the
borrowers’
income,
and
therefore
will
need
to
get
paid
$10,000
from
the
previous
cap
of
less.
Licensed Mortgage Specialist
so
that
means
the
most
expensive
down
the
line.
$25,000.
Buyers
will
have
up
to
15
b. The CMHC’s exposure will be limited to 4x the borrowers’ income, so that means the most expensive
The 2019 federal budget was
At this point, there are still a lot
years to pay back the money they property that buyers can hope to buy
property
that buyers can hope to buy under this program is roughly between 500K
to 600K, depending on
released last week and in it is a new borrowed from their RRSPs.
under this program is roughly between of program details that are unclear
down to
payment.
With
maximum
home
of 500K-600K,
program
to be of such
little as:
incentive for first-time homebuyers. their CMHC
to purchase
600K, depending
on their the and
need is
to likely
be addressed
Loan up
to a 10%
of 500K
help
to
buyers
in
Vancouver
where
average
home
price
sits
at
around
750K.
Called the First-Time Home Buyer Purchase Price
down payment. With a maximum a) how much will borrowers have to
home purchase
but in exchange
for this, the
it will
have
a corresponding
in on
Incentive, the program is geared to c. CMHC
home purchase
of 500K-600K,
repay
CMHC
in the end, is stake
it based
With will
this contribute
program, to
the the federal
help with the housing affordability government,
program
is likely
be of little
to of
original
advanced amount or will it be
through
CMHC,
will words,
the equity of the
property.
In other
CMHC
will to become
part help
owner
the property.
through what is termed as “shared d. provide
buyers
in Vancouver
a loan
of up be to placed
10% of
CMHC’s
loan will
as a the
second
mortgage
on title where average on current value of the property at the
equity mortgage”. This program is e. purchase
home the
price
sits at around
time purchase.
of settlement?; b) will the change
price
newly
Borrowers
will for still
need constructed
to come up with
minimum
down 750K.
payment for the
aimed towards helping prospective properties or 5% to existing
c. CMHC will contribute to the in property value proportionately
f. The CMHC incentive is a loan and therefore will need to get paid down the line.
homebuyers get into the housing properties. The decrease in mortgage home purchase but in exchange for affect CMHC’s equity? For instance, if
At
this
point, there are still a lot of program details that are unclear and need to be addressed such as: a) how much
market,
which
have
become amount from financial institutions this, it will have a corresponding stake the property value goes up by 20%,
will borrowers
have to stretch
repay CMHC
in the in
end,
it based
on property.
original In
advanced
amount
or will
be on current
the is equity
of the
other will
increasingly unaffordable, especially
CMHCs’
share it increase
by 20%?
may marginally
the buyers’
the property
the time on of their
settlement?;
b) will
change
property
affect
words, CMHC
will the
become
part in owner
in Toronto and Vancouver. value
The of
And value
what if proportionately
the property value
goes
purchasing
power, at depending
CMHC’s
equity?
For
instance,
if
the
property
value
goes
up
by
20%,
will
CMHCs’
share
increase
by
20%?
And
of the property.
government says that $1.25 billion purchase price and down payment.
down, will CMHC shoulder its share of
will be of
placed
as c) loss?;
d. CMHC’s
has been earmarked for the program
c) how
do borrowers
This Incentive
what if the Caveats
property To value
goes down, will CMHC
shoulder loan
its share
loss?;
how long
do long
borrowers
have to have
The
new
First
Time
a
second
mortgage
on
title
over the next three years and about
to
pay
out
this
Incentive
loan?
a.
pay out this Incentive loan?
Real Estate
First Time Homebuyers Incentive
e. Borrowers will still need to
100,000 Canadians are expected Homebuyer Incentive is limited to
Here is an illustration of the CMHC
to benefit from it. There is another recipients whose household income come up with the minimum down First-Time Home Buyer Incentive on a
Here is an illustration of the CMHC First-Time Home Buyer Incentive on a purchase of a new-build property:
$100 M in additional financing to be
purchase of a new-build property:
made available through third-
party groups, including non-
Insured Mortgage
Insured Mortgage with Incentive
government institutions.
In a gist, here are the
House Price
$450,000
$450,000
key points of the CMHC First-
Down Payment
$22,500 (5%)
$22,500 (5%)
Time Home Buyer Incentive:
Incentive
$45,000 (10%)
Down Payment from
Total Mortgage Amount
$427,500
$382,500
RRSP
First time homebuyers For more information, please feel free to contact me:
can now use up to $35,000 Cel: 604 783 9097/ Email:[email protected]/ Web: www.MyleneLim.ca/ FB: Mylene Lim
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