BOO! HST is coming! If
you're thinking of buying a new home in Ontario or BC, now is the time to do
it.
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As of July 1, 2010, the BC and Ontario
governments will implement a Harmonized Sales Tax (HST). The HST combines the
existing GST (5%) with the PST (7% in BC and 8% in Ontario) to create a single
tax that applies to more products than the PST alone. While there may be
certain advantages to an HST, its effect on real estate will be dramatic and
negative.
Currently, new home purchases are subject to GST.
But starting July 1st, new homes will be subject to the entire
HST. This means that buying a new house will cost
8% more in Ontario and 7% more in BC. For example, if you're buying a $500,000
house (not unusual in either of these markets), you'll pay $40,000 extra in
Ontario and $32,000 extra (less a $20,000 flat rebate) in BC. Kind of puts new
urgency into your shopping plans, doesn't it?
But it gets worse. Realtor commissions, legal
fees and the price of appraisals, land surveys, home inspections, landscaping,
renovations and more will all rise. Sure you could try to stay under $400,000,
since new properties under that level are exempt. But try to find a new house
or condo in Toronto or Vancouver under $400,000. Good luck!
Another option is buying a resale home since, as
is currently the case, no tax is payable. However, as mentioned above, all
associated home buying expenses will still be higher.
The only foolproof way to avoid the HST is to buy
BEFORE next summer. And as it turns out, that's a great idea anyway. Prices
still haven't reached their previous highs in most areas and interest rates are
near historic lows. If you're interested in avoiding the HST, talk to me today.
I can pre-approve you for mortgage financing at a highly competitive rate, so
you're ready to buy the moment the right house comes along!
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| Current Best Mortgage Rates |
The Mortgage Centre Rate Update - Octboer 6, 2009
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Closed |
Quick Close Specials |
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First
Mortgages
Second Mortgages
Also Available |
6 month |
3.75% |
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1 year |
2.65% |
2.25%
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2 Year |
2.95% |
2.85% |
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3 Year |
3.34% |
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4 Year |
3.54% |
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5 Year |
3.89% |
3.69%
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7 Year |
5.10% |
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10 Year |
5.20% |
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Variable |
2.25% |
3.05% (open) |
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Prime @ 2.25% |
These rates are are subject to change at any time without notice. Please contact my office for up to the minute rates. |
How
to choose the right financial planner.
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To ensure your long-term financial security, it's
essential to develop an effective financial plan, retirement strategy and
investment portfolio. Since most people don't have the skills required to do
this, here's how to choose a qualified financial planner: - Decide on some general financial goals and specific needs
(insurance, estate planning, investments, etc.).
- Do a little research in magazines and on the web so you're
familiar with financial planning strategies and terminology.
- Choose someone with a professional designation, such as Certified
Financial Planner (CFP), Chartered Financial Consultant (CH.F.C), Canadian Investment Management (CIM), Fellow
of the Canadian Securities Institute (FCSI) or Registered Financial
Planner (RFP). This ensures they've met high standards and abide by a code
of ethics.Interview more than one, see if they have experience with
clients like you, and look for a comfortable fit.
- Call their professional association to check on their record.
- Ask for references.
- Find out how they're paid and any affiliations or conflicts of
interest they might have.
- Request a written contract documenting scope of services and
compensation.
- Review your relationship on a regular basis, making sure they
understand your needs as they evolve over time.
If you'd like my recommendation on a first class
financial planner who fulfills all of the above criteria, call me today at 604-562-5055. I'll even arrange for you to receive an
in-depth Financial Planning Consultation at NO COST to you!
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Resource of the Month:
Your Credit Score: What it is and how to improve it.
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 Your credit score is a three-digit number that
lenders use to predict your creditworthiness. Credit reporting companies
calculate your score based on your payment history, how much you owe, how long
you've had credit and how often you apply for new credit. In general, the
higher your score, the less likely you are to become delinquent on credit. If
it's above 650, you'll probably qualify for a standard loan. If it's lower, you
may have trouble getting new credit.
Because your credit score and credit report are
constantly changing, it's important to review them on a regular basis, at least
once a year. Since there are two main credit reporting companies in
Canada-Equifax and TransUnion-it's a good idea to check your records with both
companies. This helps you identify and correct any inaccurate information,
detect any fraudulent activity and gauge your overall credit health.
If you're planning on applying for a mortgage,
it's especially important to check your report a few months in advance. If your
credit score is under 650, your mortgage options will be reduced, and you'll
pay a premium on your loan -- perhaps as much as 2 to 3 percent more than
borrowers with excellent credit. You may need to provide more documentation
than those with higher scores, including a formal appraisal of your home's
value.
Still wondering what your credit score is and how
to improve it? As an added value to our subscribers, we've put together a
special Free Credit Repair Guide titled,
"12 Simple No Cost Methods to Repair Your Credit." To get your free copy of
this informative guide, email or call us today at 604-562-5055.
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Do you know someone who would benefit from our service? Your heartfelt endorsement to the people in your life will support us in helping them go after their dreams. If anyone you know is currently in need of a mortgage please forward this email to them - we will both thank you.
Sincerely, 
Nicole Hayes
The Mortgage Centre
604-562-5055 | 1-877-562-5055
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| The smart choice. |
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Since I don't work for a lender, I'm not motivated to lead you in only one direction. I'll analyze your needs, shop the market for the best available deals, then recommend the one that fits your needs best.
With access to preferred rates you'll likely pay thousands less in interest by working with me vs. directly with your bank. (Yet, you could still choose to place your mortgage with your bank!) |
| Client Testimonials |
"Very professional - we recieved #1 service. Highly recommended. Thanks Nicole."
- W. Trelenberg & C. Hollins
"We are really appreciative of all the hard work Nicole did for us. We will certainly look forward to working with you again in the future! Thank you. Thank you. Thank you."
- V & B Muckle |
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"Nicole was extremely professional, knowledgeable and trustworthy. Nicole listened to our concerns and addressed them in a timely fashion. Once in motion things just flowed."
- K & R Walker
"We really enjoyed working with Nicole. We could always depend on Nicole anytime of the day for help and advice. We would certainly do business with Nicole again."
- S & B Mah
"Nicole Hayes did a great job and I appreciate her understanding with a first time buyer and giving me all the options even up to the signing date"
- I Duncan | |
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