BE PRE-QUALIFIED
A mortgage pre-qualification is fast and easy to obtain. And free. When you have this mortgage already granted, you shop safely, knowing that you will be ready to act when you want to make a purchase promise.
Don't forget that there are frequent buyers competing on the same property, the famous multiple offers.
Without this mortgage pre-qualification letter, your purchase proposal may be set aside for the benefit of another buyer.
MOVING MORE THAN 40 KM AWAY?
People are increasingly having to move either because of new job opportunities or transfers (whether voluntary or not) to other locations. If you’re facing a similar situation, you may be thinking about selling your current property and moving closer to your new workplace. And if that’s the case, there may be some great tax breaks you can take advantage of…
For starters, your real estate broker’s commission and all moving expenses may be 100% deductible from any future income earned in your new location.
Consult your accountant to know how to apply regarding an owner occupant income property.
According to federal and provincial tax laws, when a person moves to a new property because he is or will be employed in the new community or will be launching a business there, all eligible moving costs are tax-deductible. This is true as long as the new property brings him at least 40 km closer to his full-time or parttime employment.
HOME BUYER'S PLAN
The Home Buyers' Plan (HBP) is a government program which allows first-time home buyers like you to gain financial autonomy. You can become happy homeowners while at the same time building a retirement fund within a Registered Retirement Savings Plan (RRSP).
IS THE HBP RIGHT FOR ME?
Of course! And what's more, while you're fulfilling your dream of owning a home, you'll also be getting income tax refunds worth thousands of dollars. For spouses who work, these refunds can be between $14,250 and $24,100, which is quite sufficient to purchase your first home. The HBP allows each taxpayer to withdraw up to $25,000, tax-free, from their Registered Retirement Savings Plan (RRSP) to purchase a home.
BUT I'VE NEVER CONTRIBUTED TO AN RRSP...
It doesn't matter. You can still take advantage of the HBP, as long as you are earning, or have earned in the past, an income entitling you to contribute to an RRSP. By contributing the maximum possible amount to your RRSP, you'll receive generous income tax refunds.
BUT I DON'T HAVE ENOUGH MONEY TO CONTRIBUTE TO AN RRSP...
It's easy to contribute up to $25,000 to your RRSP, because allowable unused contributions since 1991 can be fully used and deductible. Also, if you take out a 90-day loan from your financial institution, and pay it back immediately after the 90-day period using money withdraw from your RRSP, you will legally obtain your income tax deduction. Afterwards, you will have almost 18 years to reinvest the money in your RRSP, without interest. It's a simple strategy with fabulous results!
HOW CAN I GET MORE INFORMATION ABOUT THE HBP?
Please, consult your accountant or mortgage broker.
