Foreign Buyers Tax is Here

General Angela Calla 25 Jul

July 25, 2016 10:51 am

ROB SHAW is in Victoria with breaking news on a new foreign purchaser tax in the Lower Mainland

VICTORIA – Foreign buyers of Metro Vancouver real estate will be taxed an additional 15 per cent, the government announced Monday in new legislation.

The tax would increase the property transfer tax on non-Canadian citizens purchasing homes. It would begin Aug. 2 and apply to all residential property in Metro Vancouver, excluding the Tsawwassen First Nation.

The government said the additional tax on a $2 million home in the Lower Mainland would amount to $300,000 on a foreign citizen.

The rules also apply to foreign-controlled corporations that are not incorporated in Canada or in which at least one beneficiary is a foreign entity.

New 15% foreign buyers tax applies to non-Canadian citizens or non-permanent residents in Metro Vancouver #bcpoli

The money would go into a special housing account set up in legislation Monday to fund housing affordability projects, rental supply and housing support programs. Government is putting $75 million into the fund initially.

The bill also gives the City of Vancouver power to implement a tax on vacant homes, which the city has argued could help increase the supply of rental housing by encouraging absentee owners to rent out their properties. Vancouver has said it needs a data-sharing agreement with the provincial government to make the tax work.

The bill also removes self-policing in the real estate industry.

The new housing legislation comes as the B.C. Liberal government wrestles with criticism it has been slow to act on the housing affordability crisis. Critics have called for government intervention to cool the market and keep home prices in reach of middle-class British Columbians. The government has resisted, saying it didn’t want to interfere and that the issue was primarily one of rising demand for a limited supply of homes. But as the May 2017 election looms on the horizon, both the Liberals and NDP are fighting for voter approval on their plans.

Thank you for visiting- the above is courtesty of The Vancouver Sun

Angela Calla

Angela Calla Mortgage Team 604-802-3983 callateam@dominionlending.ca 

Clarity On Documents Required For A Mortgage

General Angela Calla 21 Jul

When you are applying to get a new mortgage, you will be required to provide documentation. It’s important to understand, for compliance reasons, that all documents provided must be complete (all pages), unaltered and clearly legible.

One of these documents is a letter of employment. This is to be done on a company letterhead and must show your start date, occupation, salary/wage and guaranteed hours.

Lenders are looking for certainty.  If we see something on your letter that may not best position you, we will advise you immediately.

The person who wrote the letter will be called by the lender to verify the details, so it’s important that the person or someone with the same authority is available to take this call or call the lender back as soon as possible.

Most lenders require that Letters of Employment are not more than 30 days old when received by them.

Pay stubs are also required to support and confirm the letter.  As with all documents requested, they must be clear and legible.  If they are not prepared by a 3rd party, then bank account statements may be required to show the pay deposits going into your account.

If you have multiple sources of income, then your T1 Generals may be required.  As with all documents requested, all of the pages must be included.  We recommend that your accountant sends us electronic copies of these via email. It’s common for the last 2 or 3 years to be requested, based on your personal scenario and qualifications.

An income tax Notice of Assessment is often required.  This is what you receive back from the CRA after you have filed your taxes.  You can also get this from your accountant (depending on how they filed your taxes) or online by signing up for your PIN on the CRA website. If you have a tax balance owing, a Statement of Account reflecting a $0.00 balance or other confirmation of payment will be required.  If you received a tax refund, then a bank statement showing the deposit of the return may be required to confirm authenticity.

Please keep in mind that all lenders reserve the right to ask for additional documentation at any time.  We will always try to anticipate their requirements and manage them carefully in order to assist you. Everything required is requested by us at an appropriate time.   We provide a strategy that will result in the lowest cost of borrowing and we will work in an efficient manner to ensure the smoothest possible completion of your mortgage.

Angela Calla

DLC-Angela Calla Mortgage Team

604-802-3983 callateam@dominionlending.ca