|
613-454-1262
 
 |
|
Flat
Rate Realty Ottawa: Low, Discount Commission Real Estate Fees
View My
Current Listings
| |
 |
|
When you purchase
ANY home listed on the
Ottawa Real Estate Board's
MLS® system
(or on
www.MLS.ca /www.Realtor.ca)
through
me, you will receive $1000 cash back.
That's money directly in your pocket!
|
| |
|
|
|
RRSP
Home Buyers' Plan
Program
The Home Buyers’ Plan
(HBP) is a program under which you can, generally, withdraw up to
$20,000 from your registered retirement savings plan (RRSPs) to buy
or build a qualifying home.
Withdrawals that meet all applicable HBP conditions do not have to
be included in your income, and your RRSP issuer will not withhold
tax on these amounts. However, before you can withdraw funds you
must have entered into a written agreement to buy or build a
qualifying home which you must occupy no later than one year after
buying or building the home.
If you buy the qualifying home together with your spouse or other
individuals, each of you can withdraw up to $20,000. You cannot
withdraw an amount from your RRSP under the HBP if you or your
spouse owned the home more than 30 days before the date of your
withdrawal.
Details
-
Up to $20,000 per
person could be withdrawn tax-free from RRSPs to buy or build a
principal residence. Couples —including common-law — will be
able to withdraw up to $40,000.
-
You have to meet
the first-time buyer’s condition. You are not considered a
first-time home buyer if you or your spouse owned a home that
you occupied as your principal place of residence in the past 5
years. To determine past 5 years, the 4 years preceding the year
you make your withdrawal plus the period in the year you make
your withdrawal ending 31 days before your withdrawal is the
rule adopted.
-
Home buyers
withdrawing funds do not have to pay income tax on the amount
withdrawn, as long as the funds are repaid into an RRSP in the
future.
-
The 15-year
repayment period will begin in the second calendar year
following the calendar year in which the withdrawal is made. In
addition, a qualifying home must generally be acquired before
October 1 of the calendar year following the year of withdrawal.
For example, those making withdrawals under the plan in 2000
will have until October 1, 2001 to acquire a qualifying home and
their first annual repayment will be due by the end of 2002 or
the first two months of 2003.
-
A special rule
denies a tax deduction for contributions to an RRSP that are
withdrawn within 90 days of the RRSP deposit being made.
Consequently, to get the normal tax break for a contribution and
to use those funds under the plan, the money must be in your
RRSP for at least 90 days before a withdrawal is made.
Existing homeowners
can use the HBP to purchase a more accessible home or a home for a
disabled dependent relative where the individual withdrawing the
funds:
-
Qualifies for the
disability tax credit (DTC) and is buying a home that is more
accessible for the individual or is better suited for the
care of the individual.
-
Is related to a
disabled individual who qualifies for the DTC and is buying a
home for the benefit of the disabled individual that is more
accessible for, or better suited for, the care of the disabled
individual.
-
Is related to a
disabled individual who qualifies for the DTC and is
withdrawing an amount for the disabled individual to buy a
home that is more accessible for, or better suited for, the care
of the disabled individual.
You can participate in the HBP more
than once if:
-
Your HBP balance
for your previous participation is zero on January 1st of the
year you want your new participation in the HBP to occur
-
You meet the
first-time buyer’s condition and all other HBP conditions that
apply to your situation.
5% Down Payment
Program
With as little as a 5%
down payment, from personal or other sources (see below for eligible
other sources), all home buyers have access to mortgage insurance
enabling then to enter the housing market, as long as they can
manage the costs of home ownership.
Details
-
Mortgage insurance
for 95% mortgages is available to both first time and repeat
home buyers. Homebuyers have the option of using personal
sources, such as savings or gifts, or other sources, such as
lender incentives, borrowed funds/credit, or sweat equity (the
amount of money spent to help construct the home) for the
required 5% down payment.
-
Buyers using the
program may consume up to 32% of their gross monthly household
income for payments on loans for 95% of the lending value of the
house where the 5% down payment comes from other sources, will
be 2.9% of the mortgage loan. This premium can be added to the
mortgage.
-
The maximum
amortization period is 25 years.
-
Insurance premiums
on loans for 95% of the lending value of the house where the 5%
down payment comes from personal sources will be 2.75% of
the mortgage loan.
-
Insurance premiums
on loans for 95% of the lending value of the house where the 5%
down payment comes from other sources will be 2.9% of the
mortgage loan. This premium can be added to the mortgage.
-
Borrowers are
required to demonstrate, at the time of application, their
ability to cover closing costs equal to at least 1.5% of the
purchase price.
-
Where the minimum
equity requirement is being met by way of a financial gift, the
funds must be in possession of the borrower 15 days before
making an offer to purchase.
For more information call CMHC at
1-800-668-2642 or access through
www.cmhc.ca
CMHC Purchase Plus
Improvements
Program
Canada Mortgage and
Housing Corporation (CMHC) insured mortgage loans are available to
cover the purchase price of a home as well as an amount to pay for
immediate major renovations or other improvements that the purchaser
may wish to make to the property.
This option eliminates the need to obtain secondary financing after
the purchase to pay for improvements. The homebuyer obtains a single
first mortgage, makes a single mortgage payment, and benefits from
first mortgage interest rates.
Details
The insured loan will
be based on the lower of:
-
The purchase price
plus the actual cost of improvements or the “as improved”
market value. Prior to approval, CMHC will determine the market
value of the property after renovations/ improvements. The
lending value will not exceed the market value of the property
after renovations/ improvements.
-
Applicants must
have the following:
-
A minimum of
5% down payment of total cost (purchase price plus
renovations/ improvements).
-
Cost estimates
for renovations/improvements.
-
Qualifications
to obtain a CMHC insured loan through an approved lender.
For more information
call CMHC at (416) 221-2642 or
www.cmhc.ca.
|
EXAMPLE:
|
|
Purchase Price |
$100,000 |
|
Renovations/improvements
costs |
$25,000 |
|
Total cost
|
$125,000
|
| |
|
Lending Value
|
$125,000
|
|
Maximum Mortgage (95%) |
$118,750 |
|
Minimum 5% down payment |
$6,250 |
Land Transfer Tax (LTT)
Rebate Program
Program
First-time home buyers who purchase a
newly constructed home will receive a rebate of the Land Transfer
Tax (LTT). All other buyers will continue to pay the full applicable
tax. The maximum LTT rebate is $2,000.
Details
If you're thinking about buying a home, give me a call and save!
View My
Current Listings
Not
intended to solicit Buyers currently under contract
with another Broker.
®
Trademarks owned or controlled by the Canadian Real
Estate Association. Used under licence.
Flat Rate
Realty Ottawa - Low Fees - Full
Service
www.ottawaflatrate.com |
|
