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MORE GREAT NEWS FROM MORTGAGE BROKER CHAD DREYER


Hello,


Hope you had a great weekend!


It looks like we may see some great upcoming changes to Insured mortgages in Canada!


There are plans to increase the maximum purchase price for insured mortgages (less than 20% down) mortgages from 1 million to 1.25 million which is great new for Markets like Vancouver where prices are hight and in situations where buyers may be able for a to qualify but could be short on downpayment needed for a purchase would have the option to look at an insured mortgage with a higher price point.


As this develops I will be sure to keep to keep you updated.


Bond yields have hit new highs that we have not seen since Feb 2020 and this is certainly going to put pressure on fixed rates to increase shortly, I have heard some lenders will be announcing rate increases overnight or over the coming days unless bond yields go back down shortly.


Given where bond yields are now, I suggest any clients you are currently working with who may not have a pre approval/rate hold currently that they do so ASAP!


Have a great week.


Thanks,

Chad Dreyer
Mortgage Consultant 

FSCO License: M21000565
604.614.9239
chad@chaddreyer.ca
www.chaddreyer.ca


INTERESTING UPDATE FROM MORTGAGE BROKER CHAD DREYER ON PROMISES TO HELP HOME BUYERS.


Well as we all saw nothing much changed with last months Federal election, however the Liberals now have a fresh slate of policies for housing with hopes of sustainability and assisting first time buyers.


Here is a summary of their key housing promises:


Housing Supply


The Liberals plan to build, preserve or repair 1.4 million new homes if the next 4 years, they plan to do so through the following initiatives:


  • Housing accelerator fund
    • Invest $4 billion in a housing accelerator fund to build 100,000 new middle-class homes by 2024/2025
  • $2.7 billion for the National Housing Co-Investment Fund
  • $600 million for office and retail space conversion to housing
  • A temporary ban on foreign ownership
    • Foreign citizens would be barred from purchasing Canadian housing for the next 2 years, unless its proven to be for future employment or immigration within the proceeding 2 years
  • Anti-Flipping Tax
    • Applicable to properties sold within 12 months of purchase 


Mortgage Qualification Policies 


  • Changes to the First-Times Home Buyers Incentive 
    • Under the new plan participants could choose between the previous shared equity arrangement or now opt instead for a loan that is repayable only at time of sale 
  • Increase mortgage insurance eligibility cap to $1.25 million 
    • This is an increase from the current $1 million
  • Reduce CMHC insurance premiums for new buyers by 25%


Financial Assistance 


  • Tax-Free Home Savings Account
    • This allows Canadians under 40 to save up to $40,000 towards their first purchase, the money can withdrawn tax-free with no repayment requirement
  • $1 billion for rent to own projects 
  • Multi-generational home renovations tax credit 
    • Provide a 15% tax credit of up to $50,000 for homeowners who add a secondary unit to their home for the use of immediate or extended family
  • Double the First-Time Buyer Tax Credit from $10,000 from $5,000


There is definitely a lot of work here with everything the Liberals have proposed above and as we know by the time these come to law they could look much different that proposed above.


I will continue to monitor these and update you if any policy changes are announced.


If you have any questions please feel free to reach out!


Thanks

Chad Dreyer
Mortgage Consultant 

FSCO License: M21000565
604.614.9239
chad@chaddreyer.ca
www.chaddreyer.ca


THE TAXMAN COMETH FOR PEOPLE RENTING THEIR HOMES

BELOW ANOTHER GREAT ARTICLE FROM OZZIE JUROCK. THINGS YOU SHOULD KNOW

THE TAXMAN COMETH

Vancouver’s empty home tax to go to 1.25% then 1.5% and then to 2% in the next couple of years.


THE TAXMAN COMETH (BYE, BYE BnB?)


Canadians who rent out their homes are starting to come to grips with the reality that they can run, but not hide, from the taxman.


Never mind your building strata corp. saying “thou shalt not use BnB” or the city saying you can only rent it out if you live there … now you must worry that:


a) You must declare the income


b) By renting BnB you change the status of your private residence to investment property and lose all/some of your free capital gain exemption. HUH?


c) If you collect more than $30,000 you must pay GST!


Remember: Even if you’re renting out a part of the home you live in through Airbnb, you still must claim it.

Expect CRA to get tougher. The CRA says it’s losing billions of dollars every year through unreported income from the sharing economy, which includes Airbnb.

But the agency is taking a broader approach to the problem.


“The Canada Revenue Agency has identified the sharing economy as an area of risk for non-compliance,” reportedYahoo Finance Canada, who added that the agency is “identifying the highest risk files for compliance action” to ensure that hosts are paying their fair share. “The CRA will continue to monitor this sector, focusing our efforts on hosts that are providing short-term accommodations as a business.”

How do they go after the culprits? CRA has now an additional $66 million to target non-compliance in the digital economy!

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