In 2009, the federal government introduced the First-Time Home Buyers’ (FTHB) tax credit, which provides for a $5000 tax credit for qualifying homes (amounting to up to $750 in tax relief for purchase expenses). Could you be eligible for the credit? Who can claim the credit on their tax return? What is a qualifying home? Read on to find out!

Eligibility

You may be surprised to learn that you may be eligible for the FTHB credit even if the home you’re purchasing isn’t your first. You can claim this credit if you or your spouse/common-law partner obtained a qualifying home AND if you didn’t live in a home owned by you or your spouse/common-law partner in the year you obtained the home or in the preceding four years. (The latter criterion qualifies you as a first-time home buyer.)

If you have a disability and are eligible for the disability tax credit OR you obtained the home for the benefit of a relative eligible for the disability tax credit, you do not need to be a first-time home buyer.

If you are fortunate to have been gifted a home, you may also be eligible for the tax credit provided you meet all other criteria. However, the donor may need to report capital gains once the home has been gifted.

Qualifying Home

Qualifying homes may be already in existence or under construction. The home must be located in Canada and must be appropriately registered under your name or the name of your spouse or common-law partner. Single-family homes, semi-detached homes, townhomes, mobile homes, condominium and apartment units all qualify, as do select shares in cooperative housing corporations. Of note, the purchaser(s) or relative eligible for the disability tax credit must occupy the home as their principal residence within one year of acquisition.

Tax Credit

The total tax credit available for a qualifying home is $5000. You may claim the amount in full, or you may share the credit with your spouse/common-law partner. (Note: the credit should be entered on line 369 of your federal tax return.)

Do you have any questions about the FTHB credit or about mortgages in general? We’d love to answer them! Send us an email or DM us on Instagram; your question could be featured in an upcoming post.

Snow is falling in Calgary – and so is the temperature. The time you spend outside may become more sparse, but that doesn’t mean you can’t enjoy the outdoors from the comfort of your home! Here are five simple ways to bring nature indoors, regardless what season it is.

1. Open your blinds

Winter may bring fewer hours of daylight, but you can still maximize what we get by opening your blinds – especially on the south side of your property. Unfortunately, being near a window is not an effective way to help obtain Vitamin D, a vitamin that many of us struggle to get during the colder months. To ensure your body has optimal levels of the vitamin, you may want to consider getting it synthetically through foods or supplements.

2. Open your windows

There is arguably no better way to bring the outside in than to open your windows and let in some fresh air! Not only will this help make your home smell great, research suggests it could even help benefit your gut health.

3. Consider essential oils

They say scent is the strongest sense tied to memory; what better way to transport yourself to that unforgettable mountain getaway than to fill your home with the fragrance of cedar or pine?

4. Channel your inner green thumb

Plants are a great way to (quite literally!) bring the outside in. In addition to beautifying your home, some plants such as spider plants and snake plants can even help purify the air. While you may not want their namesakes in your house, the corresponding improvement in air quality is a welcome benefit!

5. Shop for décor at the grocery store

Who said décor couldn’t be edible? Nothing brightens up a kitchen more than glass container filled with bright, juicy lemons. Decorating for fall? Consider stocking your basket with pumpkins and gourds to bring a festive – and natural – vibe to your home.

As mortgage brokers, we are available to help you with your mortgage needs all year long. Contact us today!

Homes are expensive, and the vast majority of consumers don’t have the means to purchase real estate in cash. That’s where mortgages come in. Arrangements such as home equity lines of credit (HELOCs) and extended amortizations add additional financing options. The question is: are Canadians stretching themselves too thin?

Extended amortizations (or 30-year terms) are not a new concept; Canadians with uninsured mortgages or those who put down at least 20 per cent of their purchase price can currently take advantage of them. While 30-year terms have been prohibited since 2012 for insured mortgages or for those putting down less than 20 per cent of their purchase price, the October 21 federal election results could change that: at least two parties  have vowed to either bring back – or consider bringing back – extended amortizations.

HELOCs, a form of secured credit whereby lenders guarantee your repayment by securing the loan against your home, are another option many Canadians are utilizing – approximately 2 million Canadians between 2014 and 2017 to be exact. (Compare this stat to the 380,000 Canadians who instead refinanced to extract their equity.) The borrowed funds were nearly evenly split between renovations, large items such as furnishings and vehicles, debt, and investments.

Housing costs appear to have a direct impact on consumers’ use of extended amortizations and HELOCs: longer-term mortgages enable home buyers to purchase a home that may otherwise not be in their reach, and HELOC use tends to trend up with rising house prices. In 2017, when housing prices rose by 13 per cent nationally, household spending increased by 3.5 per cent. A year later, when housing prices were stagnant or plummeted, consumers spent less and shied away from drawing on their HELOCs.

Increased consumer spending has a positive effect on the economy: when home prices increased between 2014 and 2017, the gross domestic product rose accordingly by 0.5 per cent. But having access to borrowed money has the potential to wreak havoc on personal finances. According to Equifax, total consumer debt increased by 1.9 per cent last quarter, following a 2.6 per cent increase the quarter before, prompting concerns Canadians may exceed prudent spending limits if rates are slashed. In the long term, such spending habits could have an adverse effect on debt service capabilities and plans for retirement.

These products are not bad mortgage choices, however being aware of their function is very important.  As DLC mortgage brokers we have access to many different mortgages and line of credit options and are more than happy to go over an and all options available to you and your family.

Before deciding on the length of your mortgage term or use of a HELOC, you should talk to an advisor. We’re always more than happy to help! Contact us today.

To move or not to move: that is the question.

Here are five things to consider when contemplating a move.

1. Location! Location! Location!

For many buyers, location is king; you could find the perfect home that meets all your criteria (and more!) – but if it’s not in your preferred neighbourhood, you may not even consider it. It’s vital to consider what an area has to offer. Consider which features you love in your current neighbourhood – and which features you wish you had. One of your “must-haves” might be that your new home must be within walking distance of your present residence, in which case availability of homes in your area will dictate your decision to move.

2. Schooling

If you have kids – or if you plan to – schools can be a big consideration when relocating. From public to separate to private, or to a specific school, there are a plethora of options. Timing is of course important with respect to the school calendar: if relocating will necessitate a school change, moving between semesters or during the summer break may be preferable. But even more important is location; in terms of transportation, walkability, and eligibility to attend a school, proximity is vital. But beware: living in a school’s catchment area may not ensure enrollment if a school is over capacity. If a specific school (or proximity to a school) is important to you, contact the school administration before buying.

3. Timing

It’s no secret the housing market – unlike Calgary’s weather – tends to be hottest in the spring. When inventory is high, you have a greater chance of finding your dream home. That said, your next home could be listed any time of the year – you just need to be looking for it! When you start thinking about relocating, consider contacting a realtor, who can send you current (and new) listings that meet your criteria.

4. Costs

This point might seem obvious, but the cost of moving encompasses far more than the cost of the house (and its associated mortgage). You also need to consider closing costs (realtor fees, lawyer fees, etc.) and other related moving costs such as hiring movers and/or a moving truck. Property taxes, utilities, and homeowner association fees may also be determining factors. There are also more obscure costs to consider, such as transportation – and even time! As the saying goes, time is money; if the property will require a lot of time to maintain, that could be an additional cost.

5. Mortgage Rates

Mortgage rates play a big role in determining whether you should purchase real estate. That’s where we come in! From helping you decide whether to choose a fixed or variable rate to helping you navigate the refinancing process, we can help secure the best rate for you. Contact us today!

Is Calgary a great place to live? You bet it is!

Here are ten reasons why living in Calgary is still a great idea.

1. “Be Part of the Energy” With more than two thousand available tech jobs, a plethora of events and festivals, a tantalizing food scene, and the most corporate head offices per capita in Canada, Calgary is an energetic place to live, work, and play.
2. Greatest Outdoor Show on Earth Since 1912, Calgary has been home to “The Greatest Outdoor Show on Earth”: the Calgary Stampede! Every year, more than one million people charge to the world-famous event, which boasts more than three thousand year-round volunteers.
3. Calgarians help each other out When our city was under water due to the 2013 flood, thousands of Calgarians emerged as everyday heroes, helping out neighbours – many whom they had never met.
4. Mountains The majestic Rocky Mountains are visible from within our great city and are a short drive away, making winter and summer mountain activities alike easily accessible.
5. Transportation Calgary has the shortest commute time and the lowest traffic congestion of any Canadian city. Further, most residences and workplaces are less than half a kilometer from public transit service.
6. Chinooks According to Breakfast Television meteorologist Andrew Schultz, Calgary’s Chinooks, which occur largely due to our city’s topography, can result in temperature increases of up to 20°C!
7. Low Sales Tax Calgary is in a province that does not have a provincial or harmonized sales tax – only the goods and services tax that applies to every provincial jurisdiction.
8. Business Tax As of July 1, 2019, Alberta has the lowest corporate income tax in the country, at 11 per cent. By 2023, the corporate tax rate will be eight per cent.
9. Employment Things are looking up in the Calgary job market. Between May and June, Calgary gained 7,500 jobs.

• One of the most livable cities in the world Calgary is the fourth most livable city in the world– and the most livable city in North America.

If Calgary is your home, you are lucky to live in such an energetic city full of opportunity. If you do not live here, what are you waiting for? Either way, if you need a mortgage, we can help with that! Contact us. 

Summer can be a bit sluggish for home sales. Everyone can mostly be found at their cabins or cottages and selling or buying is the last thing on everyone’s mind. However, if you are keen to keep your house on the market this summer, there are some key things you can do to really stage your space (and curb appeal) to make your home shine.

We like to call this, the “Summer Stage and Sell” and it all comes together in five easy steps.

Step one: assess your clutter, is it time for another Spring clean, or a big clean if you didn’t already do one this Spring? Potential home-buyers want to envision your home as theirs, so clutter is not on your side. Consider doing a Summer clean-up, have a garage sale and get rid of items you’re not using.

Step two: assess your landscaping. Is your front and backyard overgrown with weeds and grass? Summertime in Calgary is prime time to show off your curb appeal, so get mowing and maybe even consider hiring a landscaper or even spend the day with the kids gardening to make your home shine.

Step three: look into the structure of your home. Spring melting of snow and Summer rain will tell the tale of any needed repairs in roofs, walls, foundation and more. Now is the time to fix things up before your buyers hire an inspector to seal the deal.

Step four: stage your yard and make it look clean and comfortable. Invest in some affordable patio furniture from IKEA or Walmart to make your yard cozy.

Step five: talk to your realtor about adding an extra little touch during showings by supplying some fresh iced tea or lemonade for hot days and some Summer-inspired refreshments for cold days.

And finally, when all is said and done and you’re ready to move on, connect with us so we can find the right mortgage for you!

Happy selling!

Three considerations for spring buyers

After a long, cold winter, spring is officially here (despite the dusting of snow on the ground.) While flowers and green grass are obvious markers of the change of season, a subtler indication is springing up throughout Calgary: “for sale” signs! Here are three things to consider when purchasing in the spring

April showers bring May flowers…and water damage: While the market is often inundated with new inventory in the spring, homes can be susceptible to flooding from rapidly melting snow. Keep an eye out for standing pools of water outside the home and moisture along the foundation. If you choose to have the house inspected, a licensed inspector should be able to alert you to any areas of concern that may need restoration.

Inventory: Inventory is traditionally highest in the spring resulting in an influx of new homes on the market. This is great news if you’re looking for a new home, as you often have the pick of the lot. However, keep in mind if you need to sell your existing home, the increased competition can make that more difficult.

Possession Dates: With the traditional school year ending in June, many parents are hesitant to disrupt their children’s academic schedule. As a buyer, this can serve to your advantage if the seller has school-aged kids – especially if you have yet to sell your home. Don’t hesitate to ask for a later possession date. It could turn out to be a win-win for both parties.

Whether you’re purchasing your first home or your fifteenth, buying a house is an exciting time and spring can be a great time to do it. Should you need assistance with the financing side of things, we’re happy to help you find a mortgage that’s as perfect for you as your new home will be.

The buying process for a first-time home buyer isn’t as straightforward as it appears. The process of buying a home should ideally start years prior to the investment.

If you are thinking about buying your first home, here are some things you need to consider:

1. Start saving now.

Take a hard look at your spending habits. Do you have the ability to put away a good chunk of money each month towards saving for your next home? Or perhaps you have some dollars saved in a TFSA or RSP that you’d like to put towards an investment in a new home. Either way, going into the purchase of a home with nothing down will make the process that much harder. Not to mention your payments each month will be higher. The more you can out down on your new home, the better. Consider seeing a financial consultant or planner to get you started.

    2. Understand everything else that goes with buying a new home.

The house is just the beginning. You’ll likely want to furnish it and buy new items to nest in your new space. Some homes come with blinds and appliances, others do not. Consider purchasing a home that already has these items in the space. Renovating a home? Factor in every item in your renovation from floors to electric. And don’t forget landscaping! A lot of newer homes do not come with grass or even grading in the yard. These are all items to factor into your costs.

    3. Pretend you already have a mortgage.

In order to situate yourself as a new home owner and get used to mortgage payments. Choose a few of your dream homes, talk to your broker about ballpark monthly payments and start putting the dollars you’re saving into an account labeled “mortgage”, this will get you used to paying for your mortgage while also building up your down payment.

Spring is almost here and soon enough Calgarians will be starting up their hunt for a new home.

Happy shopping!

A new year is right around the corner, can you believe it?

2018 was a big year for the real estate industry, with lots of news in our province around rate and rule changes in the mortgage world. That being said, we are excited for 2019 and the opportunities that come with change. Here are some things we’ve learned and heard around the industry:

1. Home buyers are choosing to use mortgage brokers more and more every year. With the new rule and rate changes, we’ve heard feedback that brokers bring more knowledge and security to clients in navigating re-financing, renewals and fees.
2. Although Alberta is beginning to thrive again, we urge clients to be cognizant of their finances. Creating goals, staying informed and understanding the market are just a few ways to stay smart in 2019.
3. Canadians getting, renewing or refinancing a mortgage have been told they may have to cope with interest rates substantially higher than their contract rate, but there are ways to navigate this and there may be an easing of these rules for first-time home buyers in 2019.

Stay up to date on tips and advice by following us @DLCCalgary on Facebook and Instagram or contact us with any questions.

You’re in your new home. It’s beautiful, airy and bright and after months of moving parts, planning and dealing with all the final touches, you just want to put your feet up and relax.

Fast forward one year and it’s warranty time. You’ve already done your due diligence with an initial inspection and mandatory walk through but what about your second inspection before the year is up?

That’s right, you’re going to absolutely want to do a second inspection prior to living in the home for 12 months. Why? Mark your calendar and read on!

Here are some dollar and sanity saving reasons to mark off “second home inspection” at month ten or 11.

Hiring a professional home inspector to do a second walkthrough before your warranty expires is a must. This will allow your home to go through all four seasons, which is enough time for major defects to start showing up, and you’ll still be able to get them fixed under the first stage of the standard provincial warranty, which covers against material and labour defects.

Here are some things to look for:

• Foundational cracks or seam issues outside the home.
• Major shifting visible through cracks in the roof or drywall.
• Labour defects such as protruding baseboards, uneven cupboards, mis-wired lighting or plumbing issues.
• Condensation issues or leaks from uneven or misplaced windows.
• Cracks in any visible basement flooring.
• Uneven closets or built-ins
• Carpet issues.
• Water stains in your ceiling from roof defects.

Catch these things and more in your first year and you will not be on the hook!