Mortgage Update : Current Rate Status and Federal Budget Insight

Our local mortgage experts at the Mortgage Centre, Jim Kwon and Lisa Yun have published an update on Mortgage Rates, and some insights on the new Federal Budget:

Rate Update

Due to declining mortgage rates please note the low monthly payments based on a 35 year amortization:

For every $100,000 the mortgage payment will be:

$464.03 on a 5 year fixed

$429.10 on a variable

***Please note I did not factor in any cmhc premium so the payment will be slightly higher (minimal)

On a $300,000 mortgage this would equal $1392.10 on the fixed rate and $1287.30 on the variable

Federal Budget Announcement

Good morning everyone,

The federal budget released Tuesday contains a few items of interest to those in the residential construction industry. In summary, they are as follows:

Home renovation tax credit:
Homeowners can claim a non-refundable 15% tax credit on eligible home renovation costs incurred and paid after January 27, 2009, and before February 1, 2010, under agreements entered into after January 27, 2009.

The tax credit is available on expenses exceeding $1,000, but a maximum of $10,000 of expenses qualify per family unit, so that the maximum credit will be $1,350 (i.e., $9,000 x 15%).

Home Buyers’ Plan:
Commencing January 28, 2009, first-time home buyers can withdraw $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home, without incurring tax. Previously, the limit was $20,000.

First-time home buyers’ tax credit:
First-time home buyers that acquire a qualifying home after January 27, 2009, can claim a 15% non-refundable tax credit on up to $5,000, for a maximum credit of $750. If a home is purchased jointly, the total credit that may be claimed by all purchasers is $750. The unused portion of the credit can be transferred to a spouse or common-law partner.

As further details come up I will let you know.

If you need money for those renovations and you would like to take advantage of the lower rates today, please give me a call to see if you will qualify for a new mortgage!

Have a great day.

Lisa Yun, AMP
Jim Kwon, AMP
Mortgage Consultants
MORTGAGE CENTRE – Elder Mortgage Corp.
Tel: 604-808-1884 (Lisa)
Tel: 604-808-1050 (Jim)