The Mortgage Blog » New Home Purchase

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 #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!

Mike Morisset Mortgage Minute – Episode #2

Mike Morisset — Thu, 20 May 2010 00:11:38 +0000

Now we know that getting pre-approved is important when searching for a home…now we look at how to go about getting pre-approved! This short video goes over how to get pre-approved and what documents you will need to fill out in order to get this done!

The True Impact of HST on New Home Purchases

Mike Morisset — Wed, 06 Jan 2010 19:40:11 +0000

We have all heard about the looming HST, but how does it effect the purchase of real estate in British Columbia? Below are some guidelines as to how HST will effect the purchase price of new homes and when to close on new homes to avoid the HST.

For contracts written before November 18th, 2009 5% GST will be charged regardless of when completion is.

For contracts written after November 18th, 2009 that complete before July 1st, 2010, 5% GST will be applied.

For contracts written after November 18th, 2009 that complete after July 1st, 2010, 12% HST will be applied.

Although HST is a combined tax of 5% GST and 7% PST, there are still rebates available for both taxes.
For example:

On a $300,000 Purchase Price
15,000 GST Charged (5%)
21,000 PST Charged (7%)
$336,000 TOTAL

(5,400) GST Rebate
(15,000) PST Rebate
($20,400) TOTAL REBATE

Net Purchase Price with Tax:
$336,000 Total with Tax
($20,400) Total Rebates
$315,600 TOTAL DUE with HST

This new total reflects a 2% increase over what would be paid with GST.

As with GST rebates in the past, there is a maximum HST rebate on the PST portion of $26,200.

Please consult with your Realtor and Mortgage Broker as to the specifics of your situation and how best to prepare yourself for the increase in tax payable on new home purchases in British Columbia beginning on July 1, 2010.