The Home Buyers' Tax Credit (HBTC)

Today's focus is on the Home Buyers' Tax Credit (HBTC).

What is this credit?

The Federal Budget 2009 proposed a tax credit for First Time Home Buyers as an action to provide support for Home Ownership. This proposal was thought to assist first-time home buyers with the costs associated with the purchase of a home (i.e. legal fees, disbursements and land transfer taxes).

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable income tax credit, based on the amount of $5000 for first time home buyers who plan to purchase after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax
relief starting in 2009.

How is the new HBTC calculated?

It is calculated based by multiplying the lower personal income tax rate for the year (15% in 2009) by $5000. So that means, for 2009, the credit will be $750.

Who qualifies for the HBTC?

The individual must meet the below criteria:

# They acquire a qualifying home.
# Neither the individual or spouse/common-law partner has owned and lived in another home in the year of purchase or any of the 4 preceding years.
# A person with a disability or are buying a house for a related person with a disability, you DO NOT have to be a first time home buyer. The home must enable the person with a disability to live in a more accessible dwelling.

Who is considered a person with disability?

An individual who is eligible for the Disability Tax Credit (DTC).

What is a qualifying home?

# The home must be located in Canada.
# This includes existing and new construction. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, apartments in duplexes, triplexes, fourplexes or apartment buildings all qualify.
# A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. (BUT a share that only provides you with a right to tenancy in the housing does NOT qualify).
# You or the related person with a disability must intend to occupy the home as a principal residence no later than ONE year of purchase.

Can my spouse/common-law/friend claim the HBTC?

Either person can claim the credit or you can share it. BUT the total of both claims cannot exceed $750.

If you are purchasing a home with a friend, and you both meet the conditions for the HBTC, either one of you may claim the credit or share it. BUT the total cannot exceed $750.

Does the home have to be registered under the applicable land registration system?

Yes. The home must be registered in accordance with the applicable land registration system.

How do I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated for you to claim the credit.

Do I have to submit any supporting documents with my income tax?

No. But make sure that the information is available just in case CRA requests for it.

Is the HBTC connected to the Home Buyer’s Plan?

No. Some of the conditions for the HBTC and Home Buyer’s Plan are similar but they are not connected. Eligibility for the HBTC will not change if you participate in the Home Buyer’s Plan.

For more information on the First-Time Home Buyers’ Tax Credit, click on Department of Finance’s Budget 2009 (Page 128).

Please refer to Canada Revenue Agency’s website for up-to-date details on the HBTC.
 
http://www.cra-arc.gc.ca/nwsrm/fctshts/2010/m01/fs100121-eng.html

www.okanaganmortgages.com

The Home Buyers' Tax Credit (HBTC)

Home Buyer Protection Plan

Are you a buyer thinking about purchasing a property but worried because the media keeps reporting prices are going to drop further?  Do you know someone who is trying to sell their home but no one is looking at it?  Are you a Realtor frustrated because you have a large inventory of listings?  Then you NEED to hear about the Buyer Protection Plan.

The Buyer Protection Plan (BPP) is an innovative plan for buyers of real estate.  If the real estate market drops the following year after you have purchased, the buyer will be compensated for this decrease.  This innovative strategy was developed by 180 Degrees Solutions Inc. of Calgary.  Buyers are the first to retreat whenever there is a rumor of price drops.  Through this pioneering approach, the buyer’s equity in the new purchase is protected for the first twelve months. 

What if the seller was able to provide protection to the buyer through their Realtor?  What if the seller could say at this time next year he was willing to offer the purchaser of his house some insurance in the event real estate prices went down?  With mortgage rates at an all time low, why wouldn’t you jump into the market if you found the ideal home in the neighborhood you love, knowing that if you buy today and the market falls you will get a refund 12 months from now from the seller.

Fear of rates increasing in 5 years, could also cause some buyers to hesitate.  We also have a plan to assist buyers with this dilemma - The Inflationary Hedge Mortgage Strategy.  The IHS helps buyers eliminate any potential payment shock at maturity.

So if you are a buyer, what is keeping you from buying your dream home today?  If you are a Realtor, you need to Contact Laurie Baird and Scott Mason today at (250)862-1806, Certified Agents for the Home Buyer Protection Plan.

 

http://www.okanaganmortgages.com/

 

Home Buyer Protection Plan

Ottawa to impose new rules on first-time home buyers

Monday Feb. 15, 2010 4:15 PM PT

Ottawa is expected to announce new rules Tuesday that would make it more difficult for first-time buyers to enter Canada's hot housing marking.

Sources tell The Canadian Press that Finance Minister Jim Flaherty is ready to make changes because of concern Canadians may be taking on too much debt.

Economists have advised the minister the best way to protect Canadians is to institute a debt affordability test to qualify for a Canadian Mortgage and Housing Corp. insured mortgage.

Currently, prospective home owners can qualify for a CMHC insured mortgage if they put at least five per cent down on the cost of a home.

But bank officials say they usually apply a cushion to ensure home buyers earn enough money to meet payment requirements if floating rates rise.

Flaherty is expected to make such an income test a condition for acquiring an CMHC insured mortgage.

Home Buyer's Tax Credit

Today’s focus is on the Home Buyers’ Tax Credit (HBTC).

What is this credit?

The Federal Budget 2009 proposed a tax credit for First Time Home Buyers as an action to provide support for Home Ownership. This proposal was thought to assist first-time home buyers with the costs associated with the purchase of a home (i.e. legal fees, disbursements and land transfer taxes).

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable income tax credit, based on the amount of $5000 for first time home buyers who plan to purchase after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax
relief starting in 2009.

How is the new HBTC calculated?

It is calculated based by multiplying the lower personal income tax rate for the year (15% in 2009) by $5000. So that means, for 2009, the credit will be $750.

Who qualifies for the HBTC?

The individual must meet the below criteria:

They acquire a qualifying home.

Neither the individual or spouse/common-law partner has owned and lived in another home in the year of purchase or any of the 4 preceding years.

A person with a disability or are buying a house for a related person with a disability, you DO NOT have to be a first time home buyer. The home must enable the person with a disability to live in a more accessible dwelling.

Who is considered a person with disability?

An individual who is eligible for the Disability Tax Credit (DTC).

What is a qualifying home?

The home must be located in Canada.

This includes existing and new construction. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, apartments in duplexes, triplexes, fourplexes or apartment buildings all qualify.

A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. (BUT a share that only provides you with a right to tenancy in the housing does NOT qualify).

You or the related person with a disability must intend to occupy the home as a principal residence no later than ONE year of purchase.

Can my spouse/common-law/friend claim the HBTC?

Either person can claim the credit or you can share it. BUT the total of both claims cannot exceed $750.

If you are purchasing a home with a friend, and you both meet the conditions for the HBTC, either one of you may claim the credit or share it. BUT the total cannot exceed $750.

Does the home have to be registered under the applicable land registration system?

Yes. The home must be registered in accordance with the applicable land registration system.

How do I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated for you to claim the credit.

Do I have to submit any supporting documents with my income tax?

No. But make sure that the information is available just in case CRA requests for it.

Is the HBTC connected to the Home Buyer’s Plan?

No. Some of the conditions for the HBTC and Home Buyer’s Plan are similar but they are not connected. Eligibility for the HBTC will not change if you participate in the Home Buyer’s Plan.

For more information on the First-Time Home Buyers’ Tax Credit, click on Department of Finance’s Budget 2009 (Page 128).

Please refer to Canada Revenue Agency’s website for up-to-date details on the HBTC.

Home Buyer's Tax Credit

Fall Maintenance for Your Home

Is your home ready for cold weather? These fall maintenance tips for your home will help get you ready for chilly temps, and help save money by making your home more energy efficient. Don't wait until something important breaks down before you fix it! Preventative maintenance is the key to saving money and keeping your home warm and comfortable during cold winter months.
Take one day to finish these fall maintenance tips for your home. You'll be glad you did!
Check weather stripping and caulking around doors and windows. If you notice any gaps in the coverage, make a quick trip to your local home improvement store for new materials. Keep all cold air out, and all warm air in your home with well-sealed windows and doors.
Replace your furnace filter before you even turn the unit on. A nice, clean filter will help air flow freely, and will put less strain on your furnace, making your home more energy efficient.
Have a qualified heating professional come and check your heating unit before cold weather hits. If you wait you see noticeable problems with your heater, you may not be able to get someone to come out to check it out before it breaks. These individuals are much busier during cold weather, so get them out to your home now.
If you have a chimney, having a professional chimney sweep come out and clean out flues. Again, don't wait until the weather is cold. Do it now to save yourself time and money.
If you live where the weather becomes extremely cold, protect your home from frozen pipes. Insulate the pipes before the weather dips down to freezing temps. The more insulation you use, the less susceptible they are to freezing.
Change the batteries in your smoke alarms and carbon monoxide detectors. The risk of house fire and carbon monoxide poisoning increase during winter months, so make sure that your family is protected.
By taking the time to complete the fall maintenance tips for your home listed here, you will ensure that your home stays nice and warm all winter long.

Fall Maintenance for Your Home

A Complete Mortgage Professional

We know that purchasing a home can be a very stressful time and it is our commitment to you to assist with every step of the mortgage process. We have compiled the top six reasons for using a complete mortgage consultant and look forward to working with you to reach your financial goals.

1. Get independent advice on your financial options:

As independent mortgage brokers we have over 40 lenders and wide variety of products to chose from. Our goal is to assist you by successfully financing your home or property: vacation, investment, rental or otherwise. We will start by understanding your financial goals and provide you with the mortgage products that meet your specific needs.

2. No cost to you:

There are no costs to you for our services on typical residential mortgage transactions. Like many other professional services, such as insurance, mortgage brokers are generally paid a fee when we introduce dependable customers to a financial institution. Theses fees are standard in the industry so the focus remains on your best interests.

3. Save time with one-stop shopping:

It could take weeks for you to organize appointments with competing mortgage lenders - we know you would rather spend your time house hunting, working or playing! We spend our days communicating directly with dozens of lenders, and can quickly narrow down a list of those that suit your needs the best. It makes comparison shopping fast, easy and convenient.

4. We negotiate on your behalf:

Many people are uncertain or uncomfortable negotiating mortgages directly with their bank. Brokers negotiate mortgages each and every day on behalf of Canadian home buyers. You can count on our market knowledge to secure you the "Complete" mortgage package to meet your situation.

5. More choices to ensure the mortgage meets your needs:

We have access to a network of major lenders in Canada, so your options are extensive. In addition to traditional lenders, we also deal with credit unions, trust companies and private lenders.

6.Choose a professional service:

A professional Mortgage Broker is involved in all steps of the process as well as during the entire term of your mortgage.

We strive to ensure you are provided with all the information needed to make your mortgage decision as well as providing you updates on the changing market conditions. By keeping you abreast of market information we can ensure you continue to have the best option and if necessary capitalize on the current situation.

A Complete Mortgage Professional