The Foreign Buyer Ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, also known as the “foreign buyer ban”, was first announced in April 2022 and took effect on January 1st, 2023. In effect, this legislation will restrict most foreigners from purchasing residential property in Canada for the next 2 years.

The following parties and properties will however be exempt from the foreign buyer ban:

• Canadian citizens and permanent residents.
• International students who meet certain requirements, including having spent the bulk of the previous five years in Canada. They would be able to purchase a property for no more than $500,000.
• Workers who have worked and filed tax returns in Canada for at least three out of the four years prior to purchasing a property.
• Diplomats, consular staff and members of international organizations living in Canada.
• Foreign nationals with temporary resident status, including people fleeing conflict, and refugees.

Do note that buildings containing more than three dwelling units, and recreational property — such as cottages, cabins and other vacation homes — will also be exempt.

Non-Canadian owned entities, such as corporations, and foreign-controlled Canadian entities, will also be banned from buying residential property under the Act.

Best Regards,

Tibor Bogdan
Century 21 Creekside Realty

P.S. If you want to chat, call me at 604 855 2521

A new CMHC program designed to make it easier to buy a home would be limited to first-time buyers who earn less than $120,000 a year.

Under the fine print for the First Time Home Buyer Incentive program, which was announced in March and will officially launch in September, a first-time homebuyer who earns less than $120,000 can qualify. The Canada Mortgage and Housing Corporation would kick in up to 10 per cent of the purchase price of the home, providing the borrower comes up with the minimum amount for an insured mortgage, which is now at five per cent.

There’s also a requirement that the total value of the mortgage plus the CMHC’s portion don’t eclipse $480,000. A government official says that effectively means the program is only available for properties worth a maximum of about $565,000, regardless of whether or not they have met the other requirements.

If that bar is met, the CMHC may kick in an additional five per cent of the purchase price of a resale home. For a newly built home, the CMHC may contribute up to 10 per cent.

The stakes from the CMHC would be interest free, meaning no ongoing cost to pay down, like a mortgage does.

But the government says in exchange for its stake, the CMHC would get to participate, “in the upside and downside of the change in the property value” —which means they would be entitled to any corresponding increase in the value of a home when the buyer eventually sells. On the flip side, the government would also be on the hook for any share of the loss if the property depreciates.

On a home costing $500,000, if the borrower puts up $25,000 and the CMHC puts up the same amount, the CMHC would then own five per cent of that home. So if, down the line, the house appreciates to $600,000 and the borrower wants to sell, they would have to give the CMHC five per cent of the sale price — $30,000 in this example — not the $25,000 the CMHC put down in the first place.

While a bill would be paid down the line, the savings over the years could add up. In the example above, the program would save a would-be borrower $286 a month in mortgage costs over the life of the loan, $3,430 a year.

“This will mean more money in the pockets of Canadians and will help up to an estimated 100,000 families across Canada,” said Jean-Yves Duclos, the Liberal MP and cabinet member in charge of the CMHC.

Click here to read more from this article: https://bit.ly/2IY4TWR

The term “as-is” in a real estate listing indicates that the buyer must be willing to accept the home exactly as it currently is, foregoing any opportunity to request that the seller make repairs or offer credits for problems with the property. Let’s take a look at how you may encounter the term “as-is” in a real estate transaction.

The Entire Property Being Sold “As-Is”
When the entire property is being listed and sold “as-is”, the seller will not make any repairs, nor offer any credits for potential defects of the home or grounds.

Some examples of major defects that the seller would not have to correct might include:

• Structural problems
• Leaking or faulty roof
• Active insect infestation or damage
• Non-functioning systems (HVAC, septic system, etc.)
• Mold or mildew problems
• Presence of asbestos or other harmful materials

It’s very important to have a home inspection so you’ll be prepared to make any repairs yourself upon possession. There are also circumstances that don’t guarantee that the home will be in the same condition as when you viewed it, or that the appliances will still be present when you get the keys to the home. These are all chances you take when buying “as-is, where-is”, so make sure you have professionals walking you through the process and you do all your research beforehand.

• Thou shalt not change jobs, become self-employed, or quit your job.
• Thou shalt not buy a car, truck, or van, boat, RV, etc.
• Thou shalt not use credit cards excessively.
• Thou shalt not let current accounts fall behind.
• Thou shalt not spend money you have set aside for down payment and closing costs.
• Thou shalt not finance any new furniture.
• Thou shalt not originate any inquires into your credit.
• Thou shalt not make cash deposits without checking with your loan officer.
• Thou shalt not change bank accounts.
• Thou shalt not co-sign a loan for anyone.

B.C. Finance Minister Carole James will exempt the Gulf Islands and cottages in rural areas from the government’s new speculation tax, part of a suite of reforms she unveiled Monday to respond to weeks of criticism that the new tax unfairly penalized British Columbians.
The  changes include limiting the geographic areas of the tax to Nanaimo and Greater Victoria, exempting Parksville, Qualicum Beach, the Gulf Islands and Juan de Fuca areas that had originally fallen under the regional districts in both areas that were to be subject to the new tax.
Metro Vancouver’s scope is tightened too, with the original Fraser Valley location being reduced to Mission, Abbotsford and Chilliwack, meaning Kent, Hope and Harrison Hot Springs are now exempt. Bowen Island is also exempt. Whistler, which is suffering a rental crisis, was not included  in the tax. However, the municipalities of Kelowna and West Kelowna remain part of the tax, despite a request to government to be exempted.

Article Source: The Vancouver Sun https://bit.ly/2I9zIYm

Since we have officially entered a “buyers market,” here are a few tips on how to sell your house faster and for more money then your competition.

Buyer’s market at-a-glance

• More homes on the market than buyers
• Prices tend to be lower because of increased supply
• Homes are more likely to sit unsold
• Housing surplus can slow rising prices and even lead to price reductions
• Buyers have more choices and more leverage to negotiate

If you’re looking to buy (or sell) a home, it’s important to know which type of market you’re entering into. If you’re unsure, ask your real estate agent. Of course, selling a home in a seller’s market is optimal, as is buying a property in a buyer’s market. But people don’t necessarily have the luxury of timing their home sale or purchase to coincide with the most advantageous market. It could be quite likely, for instance, that you’d be buying in a seller’s market or selling in a buyer’s market.

Tips on selling your home in different housing markets

Selling in a seller’s market is generally quick and easy. In a buyer’s market, with an abundance of properties sitting idle, you may want to do some legwork to help sell your home. There are a number of things you can do to improve your chances for making a sale. These include:

•    Understand the local market and your competition
•    Price your home right (and conservatively)
•    Make sure your home is ready to be shown at all times (consider using a professional home-stager who can help show off the best features of every room in your house)
•    Be accommodating to prospective buyer’s schedules (think of every showing as the one that could get you the sale)
•    Be flexible with your terms (offer an extended closing date or lower your asking price)
•    Be patient (and stay positive)
•    If you get an offer early on, give it serious consideration because a better offer may not come along

If you’re looking to buy or sell and would like assistance, please give me a call and I’ll be happy to assist.

Get to know the Pros and Cons and the best option for you.

There once was a time when renting your entire life may have made reasonable financial sense. It was only a generation ago that mortgage rates were in the double digits and affordable rental units were aplenty. But over time, borrowing rates have fallen, and in major centres in Canada, rental rates have skyrocketed.

It now appears the attitude among Canadians is to buy as soon as you possibly can. While home ownership is a truly rewarding goal to achieve, you really need to assess your own situation to ensure you are making the best decision.

Below is a little graph to help you decide whether you should stay a renter or take the plunge and buy. If buying is not an option for you yet, get a head start by learning the in’s and out’s of the home buying process.If home ownership is a serious goal, partner with a mortgage broker in your area to discus your individual situation. As far away as the goal may seem, you might be surprised how a professional can help you get your foot in the door – or at least in the right direction!

Article from Dominion Lending Centres – 2019 Special Edition – The Mortgage Annual

– 4 in 10 households spend more than 30 percent of their pre-tax income on rent, this is above the commonly accepted affordability threshold.

Talk to anyone renting a place in a large city like Toronto or Vancouver, and you’ll probably hear a common complaint: Rental units are hard to find and very expensive when you do.

The most recent comprehensive market survey by the Canada Mortgage Housing Corp. would seem to back up those claims. According to CMHC’s rental market report published in late fall 2018, the national vacancy rate has dropped to 2.4 per cent, while the average rent is $987.

But a closer look at the report paints a stark picture in the larger markets. The largest increases in average rent for two-bedroom apartments from the previous year were in B.C., more specifically in Kelowna (+9.4 per cent), Victoria (+7.6 per cent), Abbotsford-Mission (+8.2 per cent) and Vancouver (+5.5 per cent).

Montreal, Calgary and Edmonton saw increases in rent by 2.8 per cent, 1.5 per cent and 1.3 per cent respectively

The average rent for a two-bedroom condo in Toronto topped the list at $2,393 while in Vancouver it was $2,034. Montreal, Calgary and Edmonton all had average rents at $1,208, 1,533 and $1,392 respectively.

Meanwhile, the lowest rental condominium vacancy rates were observed in Vancouver (0.3%), Victoria (0.4%), Kelowna (0.6%), Toronto (0.7%) and Hamilton (0.9%).

Article sourced from Dominion Lending Centres – 2019 Special Edition – The Mortgage Annual