Mortgage Panic

Mortgage Panic

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Having a Mortgage Panic incident?

mortgage panic

Well, don’t panic. There is a light at the end of the tunnel. As home prices in major cities across Canada increase they become less and less attainable by the average Canadian. Naturally this is a cause of concern, or shall we say a Mortgage Panic, as many first time home buyers could be pushed out of the market.

Sometimes a mortgage panic is justifiable and sometimes it isn’t. We’re here to help you figure out whether your mortgage panic attacks are rightly so or not. As well, we should keep in mind that maybe its just not your time to buy your first home, because if you do it could put you in a real mortgage panic as the mortgage payments start to pile up and put stress on the other parts of your financial responsibilities.

That’s why we always advise the consumer to first consult with a mortgage professional and have them analyze your financial health and strength. You can call it a personal financial stress test.

A common result of a mortgage panic is confusion

Confusion as to what steps to take first, then second and so on. When in a mortgage panic mode you can inadvertently create unduly high stress levels and further confusion as to what to do with the whole home buying process. Many times when we consult with our clients it becomes clear for them where they stand in the affordability chart and it provides them with a sound level of knowledge to make an informed decision as to whether to buy their first home or to wait a little longer.

If you are feeling the mortgage panic and the confusion coming we advise you to contact us so that we can consult with you, and bring things down to perspective, which will in turn calm you down allowing you to better assess your situation and make the right decisions.

At the end

You find out that there is in fact a light at the end of the tunnel and your mortgage panic will disappear allowing you to start working towards your home ownership goals and dreams. After the consultation and analysis of your financial health and reality we will advise you on what steps to take next. For example, it may be that you don’t have enough down payment, and all you have to do is to spend the next year saving more money. Or it may be that your credit score is poor. The goal here would be to accompany you and guide you on what to do to improve the health of your credit report and its score, known as the beacon score. It could even be a combination of several issues that need attention and nourishment.

So don’t be shy and reach out to us. We’re here to help!

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Why rent when you can own

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Why rent when you can own?

First Time Home Buyers why rent when you can own your home! Switch from paying rent, to making monthly mortgage payments that’s going towards your property instead of someone else’s.

 

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Mortgage Happy

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Are you a Mortgage Happy person?

Are you a mortgage happy person or not a mortgage happy person?  We want to hear about what was your good and bad experiences when going through the mortgage application process when you were buying a home whether as a first time home buyer or an existing home owner.

Share with us and the world why you are a happy person, or not when it comes to the mortgage application process.

If you were to go through the mortgage application process what changes do you want to see in the mortgage industry, what can be improved on?

people that are mortgage happy

 

 

 

 

 

 

 

 

 

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How to select a Realtor

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Whether you are a first time home buyer or an existing home owner looking to buy or sell,  it is very important for the consumer to know how to select a Realtor, and you can do this in several ways; research online, and in person by way of speaking with their family members, friends, and colleagues about their personal experiences of working with a Realtor when they bought their first home or sold it. Many times, our clients are referred to their Realtors through their trusted network of friends.

Most importantly, you should be interviewing the real estate professional so you know how to select a Realtor.

 

Some questions that can be asked from your potential Realtor are:

1) How many years have you been working in the real estate industry as a licensed Realtor?

2) What is your area of specialty in real estate?

3) What is your geographical coverage? You want to make sure you work with someone who knows the city, town, neighbourhood, or village that you are looking to buy in.

4) Ask the Realtor if they can provide you with any references from past clients.

5) You can also ask to see the Realtors portfolio of homes he or she had sold in the past.

6) How are you planning to advertise and sell my home in the market place?

7) Why should I work with you instead of your competitor?

8) Are there any fee’s in working with you?

9) Do I have to sign a contract to exclusively work with you, or can I go somewhere else if I am not satisfied with your service?

6) [you can ask yourself the following questions]

(a) How many listings does the Realtor have currently?

(b) Does the Realtor have a professional presence online, such as a web site, and social media feeds?

(c) When meeting in person with the Realtor what is her or his attitude and demeanor towards your interest in buying a home?

(d) Perform an online search of the Realtors name to see if any positive or negative results in the way of good or bad reviews / comments are said about the individual.

(e) Call the Real Estate Board in which the Realtor is part of and check with them to see if the Realtor is in good standing or not.

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Ontario Land Transfer Tax First-Time Home Buyers

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Ontario Land Transfer Tax Refund

Did you know that under the Ontario Land Transfer Tax a first-time home buyer may be eligible for a tax refund for purchasing a home?

The Ontario Government states the following information as to who falls into the Ontario Land Transfer Tax First-Time Home Buyers plan to be for transfers where:

  • the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
  • the agreement of purchase and sale was entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.

ontario land transfer tax refund first time home buyers

How much is the Land Transfer Tax refund?

The maximum amount of the refund is $2,000. If the refund is claimed at time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed directly from the Ministry of Finance. No interest is paid on this refund.

For further details about the Ontario Land Transfer Tax for First-Time Home Buyers you can visit the Ontario Ministry of Finance’s web site by clicking ‘LINK’.

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First Time Home Buyers Tax Credit

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First Time Home Buyers Tax Credit

Did you know that the Government of Canada Revenue Agency has a special plan for first time home buyers? You heard right, the Government of Canada provides a First Time Home Buyers Tax Credit for those who purchased a home in 2012.

How does the first time home buyers tax credit work you ask? Well, the Canada Revenue Agency CRA states that you can claim an amount of $5,000 for the purchase of a qualifying home made in 2012, if both of the following apply:

  • you or your spouse or common-law partner acquired a qualifying home; and
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer)

Qualifying home

A qualifying home must be registered in your and/or your spouse’s or common-law partner’s name in accordance with the applicable land registration system, and must be located in Canada. It includes existing homes and homes under construction.

The following are considered qualifying homes:

  • single-family houses;
  • semi-detached houses;
  • townhouses;
  • mobile homes;
  • condominium units; and
  • apartments in duplexes, triplexes, fourplexes, or apartment buildings.

Note
A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.

How to claim the home buyers’ amount

Enter $5,000 on line 369 of your Schedule 1, Federal Tax.

The claim can be split between you and your spouse or common-law partner, but the combined total cannot exceed $5,000.

When more than one individual is entitled to the amount (for example, when two people jointly buy a home), the total of all amounts claimed cannot exceed $5,000.

Further information can be found at the Government of Canada’s web site by clicking ‘HERE‘.

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Mortgage Professional

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Mortgage Professional

In the complexities of an ever advancing Canadian real estate market it has become increasingly important and beneficial for the consumer, such as the first time home buyer, existing home owner looking for a mortgage renewal, or the real estate investor seeking to acquire an investment property to work with a seasoned Canadian mortgage professional – mortgage broker / mortgage agent —  when it comes to getting their mortgage financing in order.

A mortgage professional, or otherwise known as a mortgage broker or agent – we will call them from this point onwards the ‘mortgage professional’ — studies in the field of real estate financing and specializes just in mortgages. A mortgage professional here in Canada works for the benefit of the consumer / client, making sure that the mortgage client receives the correct and unbiased professional advice that best suits the needs and realities of each clients situation, which differs from everyone one else.

Unlike the individual working in a bank, mortgage professionals will not try to up-sell to you proprietary specific bank products in order that they meet their sales quota. Mortgage professionals will not push you towards one lender over another, but rather, they will decide which one of the lenders has the best mortgage product based on your personal and unique circumstances. For most consumers when working with mortgage professionals there is no fee’s or charges that they have to pay. The lending institution that approves your mortgage application will pay a commission to the mortgage professional after the closing of the deal.

Unfortunately it has become normal practice for the consumer to shop around just for the lowest interest rate even if that means sacrificing the quality and trustworthiness of the individual or company that is quoting the low interest rate. There should be more to your investigation and shopping of mortgages than just how low their interest rates are. You should be looking at the overall package of the mortgage professional.

Most provinces in Canada regulate the mortgage brokerage industry. The purpose of the regulation is for the protection of the consumer by making sure that individuals who want to work in the industry meet certain minimal judiciary and educational requirements.

If you are considering to become a mortgage broker or agent in any of the Canadian provinces, or you are thinking about seeking the professional help of a mortgage broker or agent, you can visit the following Government web sites to learn more about the mortgage industry and its professionals in most Canadian provinces.

British Columbia

Financial Institutions Commission – FICOM

The Financial Institutions Commission (FICOM) is an agency of the provincial government, which administers nine statutes providing regulatory rules for the protection of the public in the province of British Columbia.

 

Alberta

Real Estate Council of Alberta – RECA

RECA is an independent, non-government agency, responsible for governing industry professionals in the real estate, mortgage broker, and real estate appraisal industries.

 

Saskatchewan

Financial and Consumer Affairs Authority – FCAA

Financial and Consumer Affairs Authority (FCAA) protects consumer and public interests and supports economic well-being through responsive financial marketplace regulation. FCAA enhances consumer protection through licensing, registration, audit, complaint handling and enforcement activities pursuant to various provincial statutes.

 

Manitoba

The Manitoba Securities Commission

The real estate division is responsible for administering The Real Estate Brokers Act and The Mortgage Brokers Act. This division registers real estate brokers, salespersons, and mortgage brokers, monitors brokers’ trust accounts, and investigates complaints against real estate brokers, salespersons and mortgage brokers.

 

Ontario

Financial Services Commission of Ontario – FSCO

The Financial Services Commission of Ontario is a regulatory agency of the Ministry of Finance that regulates insurance, pension plans, loan and trust companies, credit unions, caisses populaires, mortgage brokering, and co-operative corporations in Ontario.

 

Quebec

Organisme d’autoréglementation du courtage immobilier du Québec – OACIQ

The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) is the organization responsible for the application and enforcement of the Real Estate Brokerage Act.

 

New Brunswick

Department of Justice and Consumer Affairs Consumer Affairs Branch

 

Nova Scotia

Service Nova Scotia and Municipal Relations Business Licensing

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Moving From ‘RENTER’ to ’OWNER’

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Moving From RENTER to OWNER could be easier than you think

 

Moving from renter to owner

Start Enjoying All the Rewards of Home Ownership when moving from renter to owner.

 

There is great satisfaction in having a home you can call your own, and we’re committed in helping you enjoy every benefit of home ownership.

We have access to a variety of programs to help first-time buyers with low and no down payment programs, options for less-than-perfect credit, self-employed customers and more, for moving from renter to owner.

 

Here’s WHY Buying and moving from Renter to Owner Makes Sense:

Stop paying your landlord’s mortgage – Instead, your monthly payments cab go toward paying down your mortgage principal, and interest, not your landlord’s.

Equity – Over the years, homeowners have the opportunity to build equity and receive a great return on their investment in a home.

Security – Unlike rent, a homeowner’s mortgage payment will not increase over the term of their loan.

Cash Access – Homeowners can borrow against their home’s equity, or turn it into cash when they sell their property.

Whatever your home financing needs are, we’re ready to help with a broad range of programs, money-saving options and personalized service.

 

Contact us at info@trusterramortgage.com for more information.

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Home Buyers Plan

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Home Buyers’ Plan (HBP)

Source: Canada Revenue Agency (CRA)

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will have to be included in your income for that year.

 

Conditions for participating in the HBP

Only the individual who is entitled to receive payments from the RRSP (the annuitant) can withdraw funds from an RRSP. You can make withdrawals from more than one RRSP as long as you are the annuitant (plan owner) of each RRSP. Your RRSP issuer will not withhold tax on these amounts.

Generally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP.

 

Note: Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year.

 

Before applying to withdraw funds under the HBP you must meet the following conditions:

  • You have to enter into a written agreement to buy or build a qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home.
  • You have to intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building it. If you buy or build a qualifying home for a related person with a disability, or help a related person with a disability buy or build a qualifying home, you must intend that that person occupy the qualifying home as his or her principal place of residence.
  • you have to be considered a first-time homebuyer (see below for definition).
  • In all cases, your HBP balance on January 1 of the year of the withdrawal has to be zero.

 

Note: Even if you or your spouse or common-law partner have previously owned a home, you may still be considered a first-time homebuyer.

 

When a withdrawal is made you must meet the following conditions :

  • Neither you nor your spouse or common-law partner or the related person with a disability you help buy or build the qualifying home can own the qualifying home more than 30 days before the withdrawal is made.
  • You have to be a resident of Canada.
  • You have to complete Form T1036 for each eligible withdrawal.
  • You have to receive all withdrawals in the same calendar year.
  • You cannot withdraw more than $25,000.

After all your withdrawals have been made you must meet the following condition :

  • You have to buy or build the qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home before October 1 of the year after the year of the withdrawal.

What happens if you do not meet all the HBP conditions?

You are responsible for making sure that all HBP conditions that apply to your situation are met.

If a condition is not met while you are participating in the plan, your RRSP withdrawal will not be considered eligible. You will have to include the RRSP withdrawal as income on your income tax return for the year you received the funds. If we have already assessed your return for that year, we will reassess it to include the withdrawals.

If you do not meet the conditions to participate in the HBP in the current year, you may be able to participate at a later year.

 

Who is a first time home buyer?

You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal.

If at the time of the withdrawal you have a spouse or common-law partner, it is possible that only one of you will be considered a first-time home buyer.

Example

In 2007, Paul sold the home that he had occupied as his principal place of residence for five years. He then moved into a rented apartment. In 2007, he met Jane and she decided to move in with him. Jane had been renting her own apartment, and had never owned a home.

Jane and Paul were married in August 2010. They wanted to withdraw funds from their RRSPs to participate in the HBP in September 2010. Since Paul owned and occupied his home during the period beginning January 1 of the fourth year before the year he wants to make the withdrawal, he is not considered a first-time home buyer, so he cannot participate in the HBP in 2010.

However, Jane is considered a first-time home buyer, since she never owned a home and did not live with Paul during the period in which he owned and occupied his home as his principal residence. She can participate in the HBP in 2010, as long as all the other requirements are met.

If Jane does not participate in the HBP in either 2010 or 2011, Paul can participate in the HBP in 2012 as he will not have owned a home that he occupied as his principal place of residence since January 1, 2008. If they want to participate together in the HBP, they both have to wait until 2012 at which time they can withdraw funds under the HBP to buy or build a qualifying home.

 

Exception to the first-time home buyer’s condition

You do not have to meet this condition to participate in the HBP if any of the following situations apply to you at the time you make a withdrawal from your RRSPs under HBP:

  • you are a person with a disability and you withdraw funds under the HBP to acquire a home that is more accessible, or better suited to your needs;
  • you withdraw funds under the HBP to acquire a home for a person with a disability related to you by blood, marriage, common-law partnership or adoption, and the home is more accessible or better suited to the needs of that person; or
  • you withdraw funds under the HBP and give those funds to a person with a disability related to you by blood, marriage, common-law partnership or adoption, to acquire a home that is more accessible, or better suited to the needs of that person.
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