BC Budget 2016 – the impact on Vancouver Real Estate

The BC budget included a number of items intended to affect affordability and availability in the Lower Mainland’s housing market. 

Property Transfer Tax (PTT)

• a New Housing exemption will apply to newly built homes or newly subdivided units priced up to $750,000, saving buyers up to $13,000.  The buyer must be a Canadian citizen or a permanent resident;

• a partial exemption will apply on newly built homes priced $750,000 to $800,000.

• a new 3% PTT rate will apply to the portion of a home sale that exceeds $2 million. For homes that sell for below $2 million, the PTT will continue to apply at a rate of 1% on the first $200,000 and 2% on the balance. 

These changes will take effect on February 17, 2016. 

Data collection

Starting this summer, individuals and corporations buying property must disclose if they are Canadian citizens or permanent residents of Canada and if neither, their home country. These changes will provide information on the volume of foreign investment in BC. 

Home Owner Grant

The Home Owner Grant threshold will increase to $1.2 million from $1.1 million for the 2016 tax year.

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The mortgage loan process is a stressful and frustrating process. The idea is to make he entire process go as smoothly as possible. Be pepared when you sit down with your loan lofficer. Here are some helpful tips

1. Straighten out your finances. Make a list of your income and expenses

2. Check your credit card balance

3. Get a copy of your credit report on Equifax

4. Gather the information the bank will require ahead of time - tax returns, pay stubs etc.

5. Find out what the current lending guidelines are. Will you require loan insurance? Conventional or high ratio mortgage?

6. The Bank will require verification of your downpayment

7. Finally, qualify your lender. Look for a mortgage lender who is best qualified to meet your needs. Loan products, services, style and personal attention vary greatly.Find someone who is very experienced in the business and can guide you through the process and overcome any hiccups. E.G. if you are self-employed you'll require a lender who specializes in this type of borrower. 

Have a mortgage questions? Put Maggie Chandler's hyper-local experience to work for you! Call 604-328-0077 today!

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