New Mortgage Rules You Need To Know
Hi everyone
By now you’ve probably heard or read in the news that the federal government is making changes to mortgage rules to ensure that Canadians don’t take on more debt. There is a lot of confusion regarding whether or not buyers will be required to provide a larger down payment or have to meet stricter qualifications. So what are these changes and how do they affect you?
There are 3 major changes you’ll need to know about:
- Qualifying at a 5 year rate
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
- Refinancing limited to 90% of the loan-to-value ratio
Currently, borrowers are able to refinance their mortgage up to 95% of the property value. This amount has now been reduced to 90%, in order to help homeowners maintain equity in their home.
- Minimum 20% down payment required on non-owner-occupied properties
A 20% down payment will now be required for small (ex. 1 – 4 unit) residential rental properties if the owner does not occupy the property. If the owner intends to live on the property (ie. a rental property), they will still be able to purchase the property with only 5% down.
These changes will go into effect on April 19, 2010.
For more details, visit my thread on my message board.
Buying a home in Brampton with no money down
If you’re thinking of buying a home in Brampton soon and are worried about coming up with a down payment, there is still a zero down mortgage program available for you to explore. Essentially, what you would be getting is a cash back from the lender that you would apply as your down payment.
This mortgage program is a lifesaver for those who want to take advantage of the low interest rates and brisk real estate market in Brampton, but don’t have enough cash in the bank as a down payment. The interest rate will not be as low as a regular mortgage with 5% down, but it does get home buyers into a position where they can own their own home at an affordable monthly mortgage payment.
Here are some quick details:
- A minimum of 650 credit score is required
- Maximum cash back from this program is $25,000
- Amortization is 35 years
- Mortgage is calculated on a 5 year at the posted rate (currently 5.39%)
If you’re currently renting and am considering owning a home, but don’t have the cash for a down payment, this program may be for you. Don’t let this strong Brampton real estate market pass you by!
For more details, visit my thread on my message board. If you would like to see if you can qualify for this mortgage program, leave me a comment here or email me!
Hi everyone!
In a previous post, I covered Park Place Condos. Here’s a quick start guide to the other big condo development that is coming up in Brampton. Blade Condos is currently under construction. Read ahead to find out more details on this condo project!
Where is it located?
The official address of this building will be 45 Railroad St., and it will be located in the heart of Brampton, directly across from the GO Station and will be occupying the former Dominion Skate Factory. Below is a picture of the site before contruction:
Who’s the builder?
Preston Group.
How tall will it be?
26 storeys.
What kind of suites will they have available?
- One bedroom
- One bedroom + den
- Two bedroom
- Two bedroom + den
What are square footages on these units?
The one bedroom units range anywhere between 571 – 831 square feet. The two bedroom units range anywhere between 900 – 1116 square feet.
What amenities will the building feature?
- Security
- Skating oval that converts into a walking track in the summer
- Fitness room
- Swimming pool
- Whirlpool
- Al Fresco Dining Area
- Yoga room
Are there prices or floor plans available?
Prices start at $179,900. Please contact me and I’ll be happy to provide them for you.
As promised, here are the final selling prices for homes in the W24 district of Brampton (anywhere East of Highway 410) for 2009.
I’ve just finished compiling the final selling prices for all homes in the W23 district of Brampton (that’s anywhere West of Highway 410) for 2009. I’ll be working on the numbers for W24 and have them posted shortly.
Hope this chart will provide useful for some of you!
One of the most frequent questions I get from clients is about the upcoming Harmonized Sales Tax (HST) and how it will affect the purchase of a home. Here is the breakdown of the rules:
When does the HST take effect?
July 1, 2010.
How much tax will I be paying in total?
13% (That’s 5% GST + 8% PST).
I’m buying a resale home, so will I have to pay this HST?
Good news! The answer is NO! If you’re buying a resale home, you simply pay the purchase price as usual.
I’m thinking of buying a new home from the builder, so will I have to pay this HST?
Ouch, yes you do!
But wait, I heard there is some sort of rebate program in place if I bought a brand new home?
The Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
Is there anything else that I would have to pay HST on?
Unfortunately, they’re hitting you everywhere. You’ll be paying HST on legal fees, moving costs, home inspection fees, and real estate commissions.
Where can I find out the full details of this tax and how it works?
You can read all the exciting details right here.
Hi, Can I please get the prices for all the - 1 bedroom + den? Thanks
Can you please send me price list info for Blade Condos Thanks