House buyer beware: Landmark B.C. court ruling will shake real-estate industry

The Calgary Herald reports on a complex ruling published this month by B.C. Supreme Court Justice Kenneth Affleck strikes to the heart of a gaping hole in Canadian tax, immigration, and property-transfer law, say the immigration lawyers.

“The B.C. decision is a stark warning to real estate agents, notaries and lawyers who fail to ensure that sellers of properties are truly tax residents of Canada,” said David Lesperance, a tax and immigration lawyer based in Toronto.

“This truly is a game changer,” said Vancouver immigration lawyer Richard Kurland.

Read the full article here

TD's Economic Assessment of the 2017 Federal Budget

Highlights:

• The government expects to run a deficit of $28.5 billion (about 1.3% of GDP) in the coming fiscal year, roughly in line with 2016 budget projections.

• Deficits continue over the forecast horizon, declining somewhat in size. The result is a level of federal debt expected to settle around 31% of GDP by fiscal 2021.

• Digging into the details revealed a largely business as usual budget, focused on continuing to implement the sizable promises made in Budget 2016. Only $4.4 billion in net new spending is planned over a five-year horizon.

• Notable by their absence were any major changes to the tax system. Small tweaks were made around the edges, but the capital gains inclusion rate was left untouched, as were other major tax rates.

• While some might have been hoping for significant changes in policy, the cautious approach shown today appears warranted. Big spending measures from last year still need to be implemented, while global and domestic economic uncertainty remains elevated.

Sean Dhillon | Manager, Mobile Mortgage Specialist | TD Canada Trust
Cell  250-818-1943 | Fax 844-206-2568
Email sean.dhillon@td.com
Web http://mms.tdcanadatrust.com/sean.dhillon/
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Mortgage Based on High Net Worth

TD has a program for clients with a high net worth to obtain mortgage financing.  The "high net worth" purchase/refinance program is based on the verification of the applicant's high net-worth which the lender will use to offer flexibility on the traditional income qualification requirement.

The program can offer up to 65% loan to value on a purchase, refinance, or a construction mortgage of a new Primary residence home, a second occupied home or a cottage/recreation home (owner occupied).  Applicants must show a minimum $500,000 or more in liquid assets (investments, savings, RRSP, TFSA) which have been held for 90 days or more in Canada. Applicants may obtain a mortgage or a flex-line (mortgage plus line of credit) option for financing.

High net-worth applicants who are retired, semi-retired or self-employed may find this program most useful. The program understands some applicants cannot show enough traditional income required to debt service a mortgage financing request, but the high net-worth applicants have sufficient liquid assets and down payment funds to show and support their financial strength.

For more information about additional program requirements contact Sean Dhillon, Manager Mortgage Specialist, TD Bank 250-818-1943 sean.dhillon@td.com "

Canadian Household Debt

Excerpt from “Central bank body warns of rising threat of Canadian financial crisis”
MICHAEL BABAD - The Globe and Mail

Published Monday, Mar. 06, 2017 6:10AM EST

The Bank of Canada has cited the vulnerabilities of many households with debts gone wild.
At more than $2-trillion in outstanding balances, Canadian households have the highest level of debt, as a share of the economy, among countries that make up the Group of Seven, as Royal Bank of Canada economist Laura Cooper noted in a recent study.

She cited the fact that we owed $1.67 for each $1 of income by the third quarter of last year.
“Interest rates are expected to rise gradually and still remain at historically low levels, but our estimates indicate debt servicing costs could rise to 16 cents for every $1 of income by 2018 from 14 cents currently,” Ms. Cooper said.

“This would represent a record high, with two-thirds of the increase attributed to rising interest payments as borrowing rates climb.”

What does all this mean? Just a reminder to think carefully before borrowing against the equity in your home.

Offshore Buyers Purchasing Victoria Homes

Comments on the March 5th Globe and Mail Story:

Victoria real estate sees influx of offshore buyers.

Brent Jang of the Globe and Mail interviews realtors who feel the greatest number of offshore buyers in Victoria are from just across the pond. He’s talking about Vancouverites of course.

And no wonder! Selling a home in Greater Vancouver to purchase a home in Greater Victoria is like winning the jackpot! Selling a detached home in Greater Vancouver in February would have netted the owner the average (benchmark) price of 1.47 million dollars.

Compare that to Victoria core’s February benchmark price for detached houses of $775,000, then consider our slower, “small town” lifestyle, greater amount of sunshine, cleaner environment, and the appeal of pocketing half a million dollars (after expenses). It’s easy to see why many Vancouverites are tempted to retire in Victoria!

Read the whole story here: http://www.theglobeandmail.com/real-estate/victoria-real-estate-sees-influx-of-offshore-buyers-from-vancouver/article34209638/