Fact sheet

First-time home buyers’ tax credit

What is the first-time home buyers’ tax credit (HBTC)?

The HBTC is a non-refundable tax credit for certain homebuyers who acquire a qualifying home after January 27, 2009, that is – closing after this date.

How is the HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the HBTC.

Who is eligible for the HBTC?

You will qualify for the HBTC if:

• 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.

If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount if we ignore that costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and 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. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

Important things to remember

The home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system.

You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if the Canada Revenue Agency asks for it.

Where can I get more information?

For more information, go to www.cra.gc.ca/hbtc or call us at 1-800-959-8281.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

When I got a call from, Francoe, the son of an old client, he told me that he was shopping around for a mortgage, and he was comparing rates.  I explained that there is more to shopping around for a home mortgage than simply rates, and he ended the conversation. Three days later, Francoe called again, and he told me that he had contacted several other lenders regarding their rates, and his dad wanted to make sure he met with me.  At our Initial Consultation, when he started out asking about my rates, I asked him if I could first explain how I worked.  Then we could decide if I was the right Mortgage Consultant for him, and if he was the right client for me.

As our meeting came to a close, Francoe was very pleased, and he told me, “This is my sixth mortgage and I have never worked with a mortgage broker who does what you do.”  He chose me to be his consultant.  Then, when we discussed my rates, he was even more pleased!

Mark Fidgett, Your Mortgage Consultant For Life
604-273-2002

P.S.  Who’s the next person you know who needs to discuss a mortgage – and not just rates?  Be sure to give me a call to discuss how I can help them

Vancouver Mortgage Broker

www.notapennydown.com

A: Although CMHC will only finance a rental property with 20 per cent down, they’ll still finance a “second home” with as little as five per cent down!

So what constitutes a 2nd home?

One difference is, no rental income can be used to help qualify and it’s also unlikely that CMHC will believe you’re buying a second home for yourself just down the street, so the application really has to make sense. You may also have to sign a statutory document at your lawyer’s stating that this is a second home.

Imagine having access to insider secrets…

call me 604-273-2002

or www.notapennydown.com

As usual, make it a great day and we’ll talk to you soon.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

If you’re happy paying the banks more than you have to, STOP reading right here.

BUT, if you’re tired of being hoodwinked, read on -

For fun, I just called up the bank and asked them what their best 5 year rate was.

Guess what they said…

Well, our posted rate is 5.39%, but if you’re lucky, I may be able to get you in around the mid 4′s

WOW, that’s great except for the fact that I could get you in around the mid 3′s

That’s a whole 1% difference.

Do you know what that means to your bottom line?

This is a perfect example of what the banks do.

By preying on unsuspecting clients, they make a HUGE profit, and you get hoodwinked into a higher rate.

Another travesty is that 85% of mortgage clients simply sign their mortgage renewal docs and stay with their current bank.

DON’T BE AFRAID TO LEAVE YOUR BANK

There is a perception that it’s difficult to switch banks, plus it costs you money to switch.

WRONG!

Question is, do you want to pay the banks more than you have to?

You may also be interested in reading “Your Banks 6 Dirty Secrets”

Why pay the banks, more than you have to?

call me 604-273-2002

or at www.notapennydown.com

As usual, make it a great day and we’ll talk to you soon.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

Mark Fidgett here for www.notapennydown.com

Just got off the phone with a VERY distressed home owner.

Imagine losing your job, just as your mortgage is about to come up for renewal.

Talk about bad timing!

I’m going to share with you exactly what I told my client.

I’ve got a secret to tell you.

You may be surprised to learn that MOST lenders DON’T, I repeat Don’t, pull your credit or check employment on renewal.

So what should you do?

Most importantly, DON’T sign the renewal document until you’ve at least spoken with me.

You’re probably curious, why wouldn’t my bank offer me their best rate on renewal?

After all, you’ve been a loyal client for years, you do ALL your banking with them…

The fact is, they don’t have to!

That’s right, they don’t have to.

WHY?

BECAUSE 85% of you, that’s right 85% of you simply sign your mortgage renewal document and send it back in the mail.

DON’T DO IT!

Even if your credits down or you’ve lost your job, call me.

I’ll give you a few secrets that will help you get the best deal without a hassle

Remember, there so much more to a mortgage than just great rates

For the Right Advice at the Right Time

604-273-2002 or on the web

at www.notapennydown.com

As usual, make it a great day and we’ll talk to you soon.

Mark Fidgett, Your Vancouver Mortgage Broker For Life

www.notapennydown.com

604-273-2002

P.S. Who’s the next person you know who needs Help with their Stuff?
Be sure to give me a call so we can help them get on that path!

You might be surprised to hear that what you get, may NOT be what you expect.

You like me, probably believe that when you pay the additional $23.95 to Equifax, you’re getting the score that lenders rely on to determine your credit worthiness.

Well apparently, THAT”S NOT THE CASE…

First some history.

Client presents to me about 3 months ago requesting a specific mortgage.

The particular mortgage program in question is designed for business owners and comes with a minimum beacon score requirement.

That being said, I didn’t want to randomly pull the clients credit without first knowing they even met the minimum credit score requirements.

As I have always advised, you can pull your score personally, as many times as you’d like, and it WILL NOT affect your score.

As such, the client specifically paid $23.95 to Equifax to see their credit score.

Their credit was too low at that time.

I sent them away with a few credit secrets to help raise their score.

They followed my advice to the tee.

They called me yesterday as happy as can be.

When they arrived at my office, they once again paid the $23.95 to Equifax to obtain their credit SCORE.

Score was 683.

BINGO, goal achieved! Or at least we thought…

Knowing that their score met the program requirements, I too pulled their score.

BUT To my surprise, the score from my end was 635.

Just to be clear, client pulls and gets a 683, I pull and get a 635.

Why SUCH a discrepancy?

I immediately called Equifax for an explanation.

I will leave it up to your interpretation.

Please push the play button below to hear the call.

Would love to hear your comments below.

Mark Fidgett
Your Vancouver Mortgage broker
604-273-2002
www.notapennydown.com
mark@notapennydown.com

And it has nothing to do with farming..

It’s another term for mortgage fraud.

The “straw” or “dummy” home buyer scheme.

For example, a renter does not have good credit or maybe he/she doesn’t not have the income needed to get a mortgage, or sufficient down payment, either way they can’t purchase a home.

He/she or an associate approaches someone else with solid credit.

This person is offered a sum of money (a benefit, can be as much as $10,000) to go through the motions of buying a property on the other person’s behalf – acting as a straw buyer.

The person with good credit lends their name and credit rating to the person who cannot be approved for a mortgage for his or her purchase of a home.

You can usually count on other types of criminal activity dovetailing with mortgage fraud or title fraud.

For example, people who run “grow-ops” or meth labs often use these forms of fraud to “purchase” their properties.

Following are some red flags for mortgage fraud:

• Someone offers you money to use your name and credit information to obtain a mortgage
• You are encouraged to include false information on a mortgage application
• You are asked to leave signature lines or other important areas of your mortgage application blank
• The seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing
• The seller or developer rebates you money on closing, and you don’t disclose this to your lending institution

Call me if you have any questions,

Mark Fidgett
Your Vancouver Mortgage broker
604-273-2002

www.notapennydown.com
mark@notapennydown.com

Here are some tips to create a captivating kitchen:

You can cut down on visual clutter by removing items you normally store on the counter.  This will help your kitchen look more spacious.

Your eat-in kitchen should have a table and chairs in it.  Buyers like to see an eat-in kitchen, but often don’t have the vision to see it as such without the furniture.

Remove window screens in the kitchen.  Screens take away from allowing natural light inside.  Plus, no one will notice they are missing.

It’s a good idea to keep some toll-house cookie dough on hand, and bake up a few cookies just before a showing…but don’t overdo it.

Keep the exotic spices and fish to a minimum when cooking the night before a showing.  Work towards achieving a “clean” smell.

Thoroughly clean all your appliances and cupboards, including the inside of your oven and microwave.

Set the dinner table with your best china to stimulate your buyers’ imagination of the dinner parties they’ll host.

Many buyers will look inside your cabinets, so make sure the inside is organized and clean.  Also store non-essential items elsewhere to make the cabinets look more spacious.

Clean as much as possible off the countertops.  Items such as the coffeemaker, toasters, can openers, salt and pepper shakers, recipe boxes, and dish draining rack can be put away.

Make sure that your counter is spotless and shiny.

If you keep fruit or flowers on your counter, be sure they are always fresh.

If your cabinets show wear and tear, you might want to paint them.  A simple trick to update the look of your cabinet doors is to replace your current knobs with new ones.  It’s much cheaper than getting a new kitchen, and it sure can make a difference.

Shine your faucets and knobs and use spot remover to prevent water spots.

Remove notes, pictures, and coupons from the refrigerator door.

Empty your trash cans.  Garbage and recycling bins must be out of sight.

You may want to make your home more attractive by having us approve a rate hold on the home you’re selling.

That way if rates rise, your buyer gets a lower rate!

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

That’s exactly what the caller in the video below stands to lose.

All because she didn’t know the difference between a Pre-Approval and a Pre-Qualification.

It’s a common story.

Client attends a showroom, likes what they see, writes an offer, gives a deposit and anticipates closing 2 years down the road.

Speculators were purchasing condos by simply putting down deposits with no intention of ever closing.

The market was so hot, they would simply flip the paper.

In the old days that may have been true.

But, many are finding out the hard way that those days are gone. Even more concerning is how they got lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage, it means that they’ve been pre-approved for the purchase.

That couldn’t be further from the truth.

In fact, there’s a BIG DIFFERENCE between those terms.

A Pre-qualification simply calculates the amount of mortgage you can qualify for based on your total combined household income and debt. It does not take into consideration your down payment, where it came from, your source of income and most importantly, your credit history.

A Pre-approval, on the other hand, takes into consideration all of those things.

Banks will often do a pre-qualification over the phone. Unfortunately, it can be as worthless as the paper it’s written on.

If you or someone you know is in a situation like this, we may have some alternatives for you.

Contact us at 604-273-2002

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002

Don’t get me wrong, I’m not saying don’t apply.

I’m saying, don’t apply yet.

Do you suspect there may be an issue with your credit, if so, you’re better off pulling your bureau yourself. Your score will not be harmed by inquiries into your own credit report. Whereas, if you apply on line or in person, you have pretty much agreed to have your credit bureau pulled by a third party.

To have your credit pulled today only to be told that your credit’s not up to snuff, is less than productive. As per my previous blog on credit, frequent inquiries can have a negative effect on your score.

So what should you do?

Regardless of whether you suspect an issue or not, you should pull your credit at lest once a year. You may be surprosed to learn that almost 80 percent of people have errors on their credit reports, 25 percent of which are serious enough to cause a person to be turned down for a job or a loan.

Though your payment history accounts for about 35 percent of your credit score, late payments within 6 months have the greatest impact on your score. You might also be surprised to hear that collection companies are notorious for keeping poor records. If you have an account in collections, you might want to send a letter to the collection company asking them to provide verification that the debt in question is yours. If a collection company is unable to verify your debt, they must remove the item from your credit report.

If you think you may have a late payment or collection on your credit bureau, instead of applying, go to www.Equifax.ca and follow along with the video below.

Mark Fidgett
Vancouver Mortgage Broker
Owner www.NotaPennyDown.com
604-273-2002