Are you Moving to Victoria?

Congratulations. You’ve picked one of the world’s loveliest cities! As you get ready for your move, here are four tips to keep in mind that will help you ensure you have a safe and enjoyable move:

Move Less Stuff.

Now is the time to divest yourself of unnecessary stuff. Moving it can be exhausting. You will quickly find you have more than you imagine, so get rid of everything you don’t need; do a garage sale, advertise on Craigslist, or just give that stuff you don’t need to someone that does. Old computer monitors, CDs, cracked plastic kids swimming pools and two of the three lawn mowers in your shed can safely be disposed of. Less junk equals easier move

Pack up One Room at a Time.

If feels amazing to finish a room, then close the bedroom door knowing that all your belongings in that room are carefully packed and ready to go. Make sure you keep a working suitcase with all the necessary items you need during the move. Bonus tip: Save the kitchen for last so you don’t end up eating fast food the entire trip.

Hire Professionals. It’s Worth the Money.
Professionals have the right tools and equipment for the job, and while you can help, you can leave the heavy stuff to them. They know how to properly load a semi-trailer and they are far less likely than you to have a mishap with a truck you’re unfamiliar with. Some companies use a container which gets delivered to your driveway, then delivered to your new residence where you can unpack at your leisure.

Plan a Moving/Goodbye Party.

If you decide to do the move yourselves, keep in mind moving is exhausting work, and many people hurt their backs because they didn’t get enough help. Even if you’re physically fit, pulling your 150-pound freezer up the stairs will be difficult. Get your friends over to help but make it fun. And make sure everyone lifts with their legs and stays safe. You don’t want the last memory they associate to you to be their strained hamstring.

Once you arrive in Victoria, if you are renting to start and looking for a place to purchase, please do give me a call. I know the city well and can help you find what you are looking for.

Budget 2019 Introduced First-Time Home Buyer Incentive.

The Incentive would allow eligible first-time home buyers who have the minimum down payment for an insured mortgage to apply to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corporation (CMHC).

There would be no monthly payments with the Incentive, meaning families would have a lower monthly mortgage payment. For example, if a borrower purchases a new $400,000 home with a 5 per cent down payment and a 10 per cent CMHC shared equity mortgage ($40,000), the borrower's total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower's monthly mortgage costs by as much as $228 per month.

CMHC would offer qualified first-time home buyers a 10 per cent shared equity mortgage for a newly constructed home or a 5 per cent shared equity mortgage for an existing home. The larger share for newly constructed homes is aimed at encouraging new builds to address chronic inventory shortages.

Terms and Conditions:
The Incentive would be available to first-time home buyers with household incomes under $120,000 per year. As well, participants' insured mortgage and the Incentive amount cannot be greater than four times the participants' annual household incomes.

The First-Time Home Buyer Incentive would be available over three years with the aim of assisting 100,000 Canadian families purchase their first home.

Home Buyers’ Plan: 

Budget 2019 proposed an increase the Home Buyers' Plan withdrawal limit from $25,000 to $35,000, providing first-time home buyers with greater access to their Registered Retirement Savings Plan savings to buy a home.

Put the Power of Artificial Intelligence (AI) to Work on Your Household Budget!

RBC’s NOMI Budgets uses AI to help their customers keep track of their household budget. It’s available through the bank’s mobile app. If you put it to use, it will apparently use AI to proactively analyze spending and recommend an appropriate budget. If you struggle to control your budget and save for a down payment, it could be a useful tool.

Source: https://www.canadianrealestatemagazine.ca/market-update/rbc-launches-firstofkind-aipowered-budget-tool-256801.aspx?utm_source=Pinpointe&utm_medium=20190426&utm_campaign=CREW-Morning&utm_content=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB&tu=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB

Are You Self Employed and Looking for a Mortgage?

From an income tax perspective, it’s advantageous to expense as much as you can to lower your taxable income, but that can cause a problem when it’s time to qualify for a mortgage. CMHC is starting to be less ridged towards self employed people who can afford a mortgage. Where as before, flexible and common-sense approaches such as a notice of assessment accompanied by a T1 General tax form, a proof of income statement from the Canada Revenue Agency, and a T2125 form, which is a statement of business or professional activities. Before October 2018, these practices were only available to B lenders and alternative lenders.

Sources: 

https://www.theglobeandmail.com/investing/personal-finance/household-finances/video-self-employed-canadian-workers-face-challenges-in-obtaining-mortgages

https://www.cbc.ca/news/business/cmhc-self-employed-mortgages-1.4753446

Bank of Canada

Any plans the Bank of Canada had to move interest rates up are off the table for the foreseeable future as global trade conflicts, domestic oil and the housing markets slow resulting in a subdued GDP and inflation growth. On April 24^th, the Bank of Canada announced it will hold the Overnight Lending Rate at 1.75 per cent. This rate is used by consumer banks to price their variable-rate lending products. The Bank of Canada has changed their stance from two years ago when they predicted multiple rate hikes in 2019.

Reference: https://www.bankofcanada.ca/2019/04/fad-press-release-2019-04-24

Zoocasa completed a study called “The Income Group You Need to be In to Buy a House or Condo in Canada”.  The study analyzed how much income prospective buyers would need to afford the benchmark home in their city, calculated the minimum income required to qualify for a mortgage, in 13 census metropolitan areas (CMAs) across Canada, assuming a 20% down payment, 3.75% mortgage rate, and 30-year amortization.

Source: www.zoocasa.com 
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