The Mortgage Blog » First Time Buyers

Mike Morisset Mortgage Minute – Episode #6

Mike Morisset — Fri, 28 May 2010 16:07:12 +0000

How to Avoid the Top 3 Mortgage Mistakes

Are you preparing to purchase a home? Many people make 3 common mistakes right before applying for a mortgage. In this video, we define these mistakes and give you tips on how to avoid them. By avoiding these mistakes, you will make your home buying process smoother and your mortgage application stronger!

Mike Morisset Mortgage Minute – Episode #5

lara — Wed, 26 May 2010 15:27:14 +0000

Using Your RRSPs to Purchase Your First Home

Don’t have cash for a down payment? Don’t worry…if you have RRSP’s and you are wanting to purchase your first home…the Canadian Government has a program designed especially for you! Watch the video below to learn how to use your RRSP’s to help purchase your first home.

Mike Morisset Mortgage Minute – Episode #4

Mike Morisset — Mon, 24 May 2010 16:26:57 +0000

Amortization vs Term

This episode of the Mortgage Minute begins to decode the language used when applying for your mortgage. Knowing “mortgage” language gives you a leg up when trying to understand your mortgage and how to personalize your mortgage to your situation. This video explains the difference between amortization and term as it applies to your mortgage!

HST Decoded…A Simple Way to Learn about HST and New Home Purchases

Mike Morisset — Fri, 08 Jan 2010 17:55:56 +0000

HST Decoded
On July 1, 2010 HST will replace GST on New Home Purchases. However, there is a phase in period that must be understood in order to accurately budget for your new home.
If the date of purchase contract is on or before November 18, 2009, GST (5%) will be applied with the same exemptions as have previously been stated, regardless of completion date. If the purchase is made (contract signed) after November 18, 2009, GST (5%) will be applied ONLY if completion is before July 1, 2010. If completion occurs after July 1, 2010, HST (12%) will be applied.
All contracts signed after July 1, 2010 will be subject to HST (12%).
HST Rebates
HST is a harmonized tax comprised of GST (5%) and PST (7%). The Rebate Programs for First Time Home Buyers are computed using two different calculations for the two portions of the HST as follows:
GST rebates are at 36% of GST payable for purchases under $350,000; partial rebate between $350,000 and $450,000; and no rebate on purchases over $450,000.
The PST portion rebate is 71.43% of PST payable up to a maximum rebate of $26,250 (approximate purchase price of $525,000)
In Short
If the purchase price is under $525,000, the purchaser will effectively pay GST (with applicable rebates) plus 2% of the original purchase price (comprised of the PST).
If the purchase price is over $525,000, the purchaser will pay 12% HST less $26,250 in maximum PST rebate.