Property Taxes 2024

General Angela Calla 31 May

As we approach the property tax deadline, we want to remind you of the important dates and steps you need to take to ensure your property taxes are paid on time. This is particularly important for those of you who purchased a property earlier this year.

Key Dates to Remember:
•Property Tax Due Date: July 2, 2024 (some municipalities – July 3rd) check directly with your lender if you are unsure if they are included in your mortgage payment.
•Home Owner Grant Application Deadline: December 31, 2024

Your Responsibility as a Homeowner
If you purchased a property at the beginning of the year, it’s crucial to remember that paying outstanding property taxes is your responsibility. Failure to pay your property taxes by the due date will result in penalties and interest charges. Ensure you deduct any eligible Home Owner Grant (HOG) from your total tax amount before making your payment.

Claiming the Home Owner Grant (HOG) in British Columbia
The Home Owner Grant is a program designed to help reduce the amount of property taxes paid by eligible homeowners. Here’s a step-by-step guide on how to claim your Home Owner Grant:

1. Determine Your Eligibility: You must be a permanent resident of British Columbia.
•You must be a permanent resident of British Columbia.
•The property must be your principal residence.
•You must be the registered owner of the property.
2 .Understand the Grant Amount:
•Basic Grant: Up to $570
•Additional Grant: Up to $845 (for seniors aged 65 or older, people with disabilities, or surviving spouses of veterans)
3. Apply for the Grant:
•Visit the BC Government’s Home Owner Grant Application website. https://www2.gov.bc.ca/gov/content/taxes/property-taxes/annual-property-tax/home-owner-grant/apply
•Ensure you have your property tax notice on hand, as you will need the jurisdiction number and the roll number.
4. Submit Your Application:
•Fill out the application form online or submit a paper form if applicable.
•Submit the application before the property tax due date to avoid penalties on the total tax amount.
5. Receive Confirmation:
•After submitting your application, you will receive a confirmation. Ensure you keep this for your records.

Important Notes:
•Late Payments: If you do not pay your property taxes by the due date, you will incur penalties. Ensure you subtract any Home Owner Grant from your total property tax amount before paying.
•Penalties: The penalty for late payments is a significant percentage of the outstanding amount, so it is vital to pay on time.

If you have any questions or need assistance with your Home Owner Grant application, please contact the property tax office or visit the BC Government Home Owner Grant page directly.
If you have any mortgage related questions on mortgage options, renewals or a home purchase or review of finance outside your mortgage with a financial planning partner, please reply to this email and we are happy to assist.

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

How to Close on a Presale to Preserve Wealth with Reverse Mortgage

General Angela Calla 24 May

As presale closing dates approach, many clients are trying to figure out how to close on the presale they wrote on 2 years ago. If you are 55 years or older, we may be able to help.

For a client purchasing a presale who no longer qualifies for enough of a mortgage on the new purchase, their parents or grandparents can use CHIP to gift the necessary funds. The parents or grandparents can gift the money with no impact on their monthly cashflow (no payments required) and no tax or investment growth impact from taking the money from savings.

Clients 55 years of age or older purchasing the condo for themselves, either as a rental or a home they will eventually move into, have a few options. If they have good equity in their existing home, we can do an interalia over both properties to finance the full purchase price. We will need to payout the mortgage on their existing (if there is one).

Should the interalia not give them enough funds to close, you can also look at doing a reverse mortgage on whichever property will be their primary residence and fund the remaining amount owing through a traditional mortgage on the other property. We do not consider non-subject properties when qualifying.

And, of course, if your clients have enough equity in their primary residence to fund the purchase of the presale, no interalia is required.

If your clients intend on selling one of the properties within the first year, Reverse Open is a good option. If they plan on keeping it for longer they are likely better off to do a traditional reverse and pay the penalty when they sell. I’m happy to run the numbers for both scenario.

 

Recent Client Story – Presale Condo Purchase

Larry (78) and Brenda (74) have a clear title home in Burnaby valued at $3.2M. Their grandson purchased a presale in 2021, closing at the end of May. Not only does he no longer qualify for the mortgage but the appraisal came back lower than the purchase price so he also needs to make up the $80,000 shortfall.

Reverse approved loan amount: $1,242,500

They gifted their grandson $400,000 to close on his presale. The grandson didn’t need that much but Larry and Brenda decided that, rather than gift him just enough to cover the shortfall and qualify, they would gift him enough to help him live more comfortably.

 

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Updates – May 2024

General Angela Calla 23 May

We wanted to share some key points to consider with the expected changes ahead, particularly as we look forward to the Bank of Canada press release on June 6th. While data suggests a rate cut, it wouldn’t be a total surprise if they waited until July. When the anticipated cut occurs in the upcoming months, it is expected to be 25 basis points, which translates to a $13 reduction per $100,000 in mortgage amount for those with adjustable-rate mortgages or line of credit products.

If You Are Looking to Buy a Home
In some areas, with an increase in listings, it is currently a buyer’s market. Waiting for rates to go down may bring more buyers into the market, driving prices up and offsetting the reduced mortgage rates. This is why the Bank of Canada is cautious and slow with rate decreases. If you qualify now, you can benefit from these market conditions. You may enjoy our FREE mortgage toolbox app.

If You Can’t Qualify Now
Now is a great time to set up a plan! The RRSP limit has been increased, and the new FHSA is a great option. These, combined with other planning methods, will help you reach your goal efficiently. Simply reply to this email with your phone number, and we will have a financial planner get in touch with you.

If Your Mortgage Renewal Is Coming Up in the Next 6 Months
Reach out to us today. We conduct full rate checks before completion to ensure the lowest borrowing costs, so you won’t miss an opportunity. Working without bias is to your best advantage, allowing us to clear the clutter, simplify your life, and ensure you get the best options. We help families by conducting a comprehensive review of their finances, which can free up hundreds or even thousands of dollars monthly, setting you on a path to financial security.

Fun Stuff
-If you haven’t entered our contest to Win a Free Mortgage Payment, do so HERE.
-If you want to catch our next Mortgage Renewal Webinar, register HERE.
We look forward to connecting with you after the Bank of Canada Press Release on June 6th.
Please reach out to us directly with any mortgage questions or for an introduction to a financial planner or real estate partner.

Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog.