First Time Home Buyer Exemption
______________________________________________________________________________Hi-Level Gardening with a Rooftop as your Canvas, Sky's the Limit!
Kitchen of the Week: Seattle Addition Can Handle a Crowd
Designers mix classic and modern styles in a light-filled gathering spot for a couple and their extended family
Near Death Valley, a Vacation Rental Gets the Designer Touch
You wouldn’t think that one of the hottest, driest places on Earth would attract many visitors. But Death Valley National Park — home to snowcapped mountains, rolling sand dunes, curious wildlife and, yes, extreme heat — has seen visitation double over the past nine years. In fact, a record 1,678,660 people visited the park in 2018, according to the National Park Service. And the month with the most visitors was August, when temperatures often top 120 degrees Fahrenheit — in the shade!
Recently, designer Karen McAloon and business partner Mikel Hubbard took note of this, er, hot spot and decided to get in on the 282-feet-below-sea-level ground floor. They bought a run-down ranch-style house and used Houzz to turn the property into a fun, funky and design-minded short-term vacation home for travelers looking to stay minutes from the park entrance.
Read the full story
Canadian mortgage rates are falling as bond yields slide lower
by Pete Evans · CBC News · Posted: Mar 26, 2019 4:00 AM ET
Yield on 5-year government debt has dipped below 1.5%, its lowest level since 2017
What's bad news for some is good news for others, and Canadian mortgage-holders are the unexpected beneficiaries of some of the gloom that's hovering over Canada's economy.
Fixed mortgage rates have been falling precipitously in recent weeks, as the cost of financing those loans has gotten cheaper. Banks and other lenders get the money that they loan out in mortgages by borrowing it themselves on the bond market, and the yields on five-year bonds have been falling since late 2018.
A five-year Government of Canada bond was yielding just 1.45 per cent on Monday. That's the first time the figure has been below 1.5 per cent since the summer of 2017.
Last week, the yield curve on long-term lending versus short-term inverted, a rare event that has an uncanny knack for predicting recessions. (For a longer explanation on what an inverted yield curve means, read this.)
Bond yields have been falling since late 2018
Fixed rate mortgages are priced based on what's happening in the bond market, which has been signalling cheaper borrowing since the fall.
Bond yields are heading lower largely because investors think the prospects for the economy are looking dim, so they expect interest rates to start moving lower.
Lower bond yields are generally "not a good sign from an economic standpoint," says Janine White, vice-president of rate comparison website, Ratesupermarket.ca, "but it's great for mortgage borrowers."
Bank of Canada holds rate steady but some say a cut is coming
That's because cheaper financing costs are allowing the banks to cut their mortgage rates to try to entice borrowers. CBC News reported in January that Royal Bank cut its five-year posted rate to 3.74 per cent, a move that rivals were expected to match.
Royal Bank has since cut that rate two more times, first by 10 basis points on March 1 and then by another 15 basis points on March 13. The bank's five-year fixed rate is now at 3.49 per cent, and other lenders are indeed following suit.
TD Bank currently has a special five-year fixed rate of 3.49 per cent. Smaller lenders are even lower. Dominion Lending Centres is offering 3.29 per cent locked in for five years, while HSBC Canada has a special five year of 3.24 per cent at the moment.
Variable rates moving lower too
And it's a similar story on the variable rate side — albeit for different reasons.
Unlike fixed rate mortgages which take their cues from the bond market, variable rate mortgages tend to move in conjunction with whatever the Bank of Canada is doing.
And investors are betting that the central bank will soon be moving its rate down, not up. Investors in financial instruments known as overnight index swaps are pricing in zero chance of a hike this year, but about a one-in-five chance of a cut by July, and up to a 44 per cent chance by September.
Mortgages from big banks consistently cost Canadians more, says rate comparison site
White says the variable-rate mortgage market is simply pricing in some of the negative economic indicators of late, including lower inflation and an anemic GDP number that showed Canada's economy actually shrank to close out 2018.
"There's an increased probability they will actually cut to try to fuel economic growth," White said, of her expectations for Canada's central bank.
And economists are predicting the same thing.
"One of the biggest shifts that occurred in our quarterly March forecast was the removal of any further interest rate hikes from our outlook," TD Bank's chief economist Beata Caranci said in a note on Monday. "We hit the stop button."
Variable rates have not just stopped going up, they've shifted into reverse and gone down in some cases. Rates below three per cent are now common, both at the big banks and at alternative lenders.
Buying a home? CMHC could soon kick in 10% of the cost — for a price
The spring is always a key time in the mortgage markets. That's because the lion's share of home purchases happen in those months, so lenders try to compete as much as possible on rates to take as big a bite as they can of that business.
Given that, the sudden trend towards cheaper lending could well stick around for a bit, White says.
Are we still going to be headed for interest rate increases in the next couple of years? Yes," she says. "[But] for the rest of 2019 the prediction is that the variable rate is going to be stable and maybe has a chance of coming down."
Just Listed! #102-600 Sarsons Rd $590,000
Located on the quiet west-exposed side of Southwind at Sarsons, is our bright 1440sqft 2 bedroom, 2 bath CORNER-located condo in the desirable Lower Mission. Enjoy 2 convenient entrances to our unit with spacious wrap around deck & a close proximity to our executive clubhouse with indoor/outdoor pool & gym. Living in this unit will feel similar to living in a townhome. A sophisticated finished home with engineered floors, granite, updated lighting, high ceilings, gas stove/oven, modern backsplash, undermount lighting, pantry, gas fireplace, king sized master bedroom with soaker tub, shower and double vessel sinks; with an updated front loading washer and dryer. 2 secure underground parking stalls and 1 above average sized storage locker included. Pets and rentals allowed with restrictions and the strata fees INCLUDE THE SUPPLY OF WATER, HEAT & A/C as there’s an energy efficient geothermal system. Lots of guest parking, unlike the downtown core or South Pandosy corridor. On your weekends play tennis across the street or walk your dog down along “street of dreams” Hobson Rd or swim at Sarsons beach. A bakery, butcher and 2 grocery stores are also just a short walk away too. If you feel this home is just right for you, please book an appointment to view by visiting GoldilocksEstates.com
Coldwell Banker Horizon Realty
Open House Saturday and Sunday
2967 Lakeview cove Road
Lakeview Heights’ best value for home offering unobstructed no rooftop lakeviews w deep lrg. backyard, saltwater pool and a 2 bdrm walkout inlaw suite w high ceilings. 4,045sqft, 5bdrms, 4baths, built in 2003 on private 0.59 acre size lot.
Coldwell Banker Horizon Realty
Pro Webinar: How to Manage ‘Scope Creep’
Houzz’s Industry Marketing team looks at ways project creep can hurt your business and how to keep it from happening
2967 Lakeview Cove Road
Lakeview Heights’ best priced option for an executive home, offering an unobstructed ridge top lakeview with deep large useable backyard, saltwater pool and a 2 bdrm inlaw suite with high ceilings.
Your kids and dog are going to love this neighbourhood and yard. A 2 storey walkout floorplan, offering approx. 4,045sqft., 5bdrms, 4baths and an architectural style that pays homage to an inviting, relaxed “Whistler” interior. Warm wood interior finished windows and smooth rich coloured hardwood floors that beautifully contrast the beaming blue lake in the background.
Constructed in 2003 by reputable Worman Builders on a very private 0.59 acre size lot that fronts a quiet street location with terrific neighbours that maintain quality curb appeal.
Look forward to coming home and enjoy nature and relaxation at its best.
Contact Gillian for more details or to view this home. Info@goldilocksestates.com
Coldwell Banker Horizon Realty
New Looks for Cabinets and Countertops Emerging in 2019
Dark colors, wood patterns and thin surfaces are a few of the trends seen at the recent Kitchen & Bath Industry Show
Erin Carlyle February 23, 2019
Houzz Editorial Staff. Writing about the cost of renovation and what it takes to remodel. Former Forbes real estate reporter. Fascinated by cool homes, watching the bottom line.
BMO RATE AND NEW OFFERS
See attached new offers with Bank of Montreal
Remember we also can finance in some neighborhoods on lease land others cannot. Also we do not require CMHC insurance if putting 20% down on lease lands and this saves thousands for your clients.
LOWER rates then this is using CMHC OR
In addition this program is the best in Canada for military and RCMP, our rate is lower than all others in these cases.
BMO CDCB Program benefits are exclusive to all members of Canada’s defense community and their families:
Canadian Armed Forces: Regular and Reserve Forces, Retired and Former Members
Department of National Defense (DND) and Staff of the Non-Public Funds (NPF) Employees, including former employees receiving a pension
• Serving RCMP Members and former RCMP Members receiving a pension and RCMP Civilian employees
• Employees of Military Family Resource Centres (MFRC), Defense Research and Development Canada (DRDC), Communications Securities Establishment (CSE) and Defense Construction Canada (DCC)
• Foreign military members directly serving with the Canadian Forces
CDCB program benefits include:
• FREE banking with the Performance Plan1
• FREE Unlimited Interact e-Transfer®‡ transactions
• Keep the same accounts no matter how many times you relocate
• BMO Employee Pricing on a wide range of mortgage options3, 4
• Flexibility to move or break your mortgage through the Integrated Relocation Program
• Interest rate buy-down option
• Eligible for mortgage protection even when on active duty
Please refer clients to Doug Panton if needing financing with BMO.
BMO Bank Of Montreal
Cell 250 575 5957
Fax 250 707 3956
Zach Pashley & Brian Stephenson
Residential Real Estate Practice Group
Pushor Mitchell LLP
• Housing affordability emerges as top political issue in the province, prompting demand for data on potential causes with special focus on foreign money
• 2016 BC Report: roughly 5% of buyers in Lower Mainland were neither citizens nor permanent residents
• 2016 Vancouver Report: roughly 5% of homes left empty year - round
Speculation and Vacancy Tax Act
• Came into force late 2018
– Rules apply for properties in 2018 and onward
• The Act is very complicated so just going to try to hit on the major points
Imposition of the Tax
• EVERY owner of residential property in the specified areas must pay the speculation tax UNLESS he or she qualifies for an exemption
• It is the owner(s) of the property at the end of December 31 of each calendar year that is/are subject to the tax
• Tax, generally, only applies to Class 1 property:
– Property Tax assessment class
– Residential land + house on the land
– Vacant residential land (even if no house on it)
• Possible exemption if construction is being carried out
– Residential property on farm land
• Metro Vancouver and UBC
• Capital Regional District
• Nanaimo & Lantzville
• Abbotsford, Chilliwack and Mission
• Kelowna and West Kelowna
• Does not include:
– Any islands included in the above
– Reserve lands, treaty lands of treaty first nation, etc.
• EVERY registered owner of the property is liable for speculation tax in proportion to their ownership interest in the property
– e.g. 50% owners each owe 50% of the tax
– Each owner must qualify separately for any exemptions
• BUT, all owners are jointly and severally liable for the whole amount of the tax!
– Important to know for situations of 99% & 1% legal ownership
ax Rate for 2018
• Tax rate for 2018 is 0.5% of the assessed value of the property for all owners
Tax Rate (2019 - … )
• 0.5% if owner is Canadian citizen/PR
• 2% for non-citizens/PRs
• If no speculation tax declaration is filed: 2%
– Will get to declarations later in the presentation
• According to the government, 99% of properties in areas covered by the tax will be exempt
• Many exemptions available (do not have time to talk about all of them, sorry)
Year of Acquisition
• Very important: Owner is exempt from the tax for the calendar year that they acquire the property
– Owner must have paid PTT or have been exempt under a few prescribed exemptions, for example:
• First time home buyers’ exemption
• Newly-built housing exemption
Principal Residence Exemption
• Owners of residential property are exempt if the property is the principal residence of a resident of British Columbia
– Principal residence: place the person lives more than any other in the year
• Can’t just declare a PR, have to actually live in it
– Resident of British Columbia: Canadian citizen/PR AND resident in BC for income tax purposes
• Rules are complicated and often confused
• Owner is exempt if property occupied by a tenant for one or more periods that total at least 6 months in the calendar year
– Does not have to be the same tenant
– Does not have to be consecutive 6 months
• 3 months for 2018
• 2 kinds of tenants contemplated in the Act
– Arm’s length tenants (unrelated to owner)
– Non-arm’s length tenants (related to owner)
Arm’s Length Tenant:
• Occupies the residence (or part of the residence) under a tenancy agreement
– Agreement must provide for tenancy on monthly or longer basis
– No fair market value rent requirement
• Is “arm’s length” to the owner of the property
– i.e. not related to the owner
• The residence must be the place the tenant makes his or her home
– Critical: it must be a “real” rental (i.e. the tenant actually lives in the property)
Non-arm’s Length Tenant:
• Is “non-arm’s length” to the owner of the property or the owner’s spouse
– i.e. related to the owner
• Residence is the place the tenant resides for longer period in the month than any other
– i.e. tenant’s principal residence
• No tenancy agreement required
Non-arm’s Length Tenant:
• Following persons are deemed not to be an non-arm’s length tenant:
a) The owner,
b) The spouse of the owner, or
c) Minor child of the owner
What does this all mean?
- If the tenant is unrelated to the owner, there must be a written tenancy agreement
- To use the exemption, the tenant actually has to live in the residence
- An adult child of the owner can live in the residence and get the exemption
– Do not have to pay rent; do not need a written agreement
- Short-term rentals don’t count for exemption
- There can be a mix of arm’s length and non-arm’s length tenancies or mix of different tenants
- Rules refer to a “part of a residence” that is occupied by a tenant
– Means that if residence has a basement suite or carriage home, etc. that is occupied for the 6 months, entire property is exempt
• If the strata bylaws “prohibit” rentals to arm’s length tenants and the bylaw was in place before First Reading (i.e. October 16, 2018) then properties are exempt from the tax for 2018 and 2019
– Owner must also have acquired the property before First Reading
Construction or Renovation
• In general, properties under construction or renovation are exempt from the tax
– For renovations, exempt if property cannot be occupied for 90 days in the year because of the renovation
• BC Resident Owners: up to $2,000 credit on secondary property
– Exempts an owner on property assessed at up to $400,000, or provides a $2,000 reduction in tax payable on property assessed above $400,000
• e.g., a $500,000 property would only be taxed on $100,000 of assessed value
• Each taxpayer and his or her spouse get only one $2,000 credit in total per year to cover only one single property
• Each property is only eligible for $2,000 in total credit claimed per year (relevant for cases of multiple owners)
• Non-BC Owners:
– Rules here are very complicated
– Tax credit based BC income earned by owner
– Maximum credit will reduce tax owing to the 0.5% rate of BC residents
• If a person knowingly or grossly negligently makes a false statement in a declaration, they are liable to a penalty equal to 100% of the tax they avoided because of the false statement(plus interest)
• Government has an online portal for registering and making declaration for the tax
– And for claiming any exemptions
• All owners of property must register and make a declaration
• Owners have been mailed a letter that includes ID numbers that must be used to file the declaration
Timeline / Important Dates
• Early January, 2019: speculation tax letters mailed
– Gives information about how to register and unique identification number for the property
• January 21, 2019: online portal opened and declaration period started
– all owners have to register online
• March 31, 2019: declaration due
• April, 2019: tax notices/assessments mailed
• July 2, 2019: speculation tax payment due
Lawyers & Trade-Mark Agent
January 2019 Market Statistics
We insist you download the ap HOUZZ. It's our favorite ap and I often refer to it as my design Bible. Its endless supply of photos, articles and connections to local professionals will take your imagination to the land of most Dreamy Homes. If you are building a home or simply want to follow trendy interior styles and latest house gadgets, make sure to download this ap or visit their website. You will not be disappointed! We will be posting our favorites regularly. Click on this Houzz badge to visit the Professional Contacts in our Region:
|Kelowna Home Professionals|