First-Time Homebuyer Benefits.

Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:

New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.

Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.

The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!

Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.

First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.

First-Time Buyer Exemption: First-time home buyers are eligible for an exemption, reducing the property transfer tax you pay. If the fair market value of the property is:

• $500,000 or less, you can claim an exemption amount equal to the full amount of property transfer tax.
• Over $500,000 but no more than $835,000, the exemption amount is $8,000.
• Over $835,000 and under $860,000 then the exemption amount is proportionally reduced up to $15,200.

Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates.

Reach out to to me today to learn more!

Written by my marketing team.

Unlock Tax-Free Cash with the CHIP Reverse Mortgage.

As you enter retirement, financial stability may be top of mind. Whether you’re looking to cover unexpected expenses, help family members, or simply enhance your lifestyle, having access to additional income can make a difference. For Canadian homeowners aged 55 and better, the CHIP Reverse Mortgage by HomeEquity Bank provides a smart, flexible way to access tax-free cash from your home’s equity.

How Does the CHIP Reverse Mortgage Work?

The CHIP Reverse Mortgage allows you to unlock up to 55%¹ of the value of your home without the need to sell or move and unlike a traditional loan, there are no monthly mortgage payments required.

Three Ways You Can Use Your Home Equity

1. Protect Your Retirement Savings
   Many retirees rely on their RRSPs, TFSAs, or other savings to manage expenses. However, withdrawing large amounts can lead to hefty taxes and diminish long-term retirement funds.  With the CHIP Reverse Mortgage, you can access tax-free cash from your home equity, preserving your savings and allowing your investments to continue growing.

• Manage Debt and Unexpected Costs
  Whether it’s high-interest credit card debt or unplanned medical expenses, managing financial surprises in retirement can be stressful. The CHIP Reverse Mortgage gives you the flexibility to pay off existing debts by consolidating the debt or handle unforeseen costs without affecting your monthly cashflow or budget that you may have set for yourself.

• Live Retirement Your Way
  Retirement is your time to enjoy life. Whether it’s traveling, renovating your home, or helping your children and grandchildren, the CHIP Reverse Mortgage gives you the financial freedom to make the most of your retirement – on your terms.

Why Choose the CHIP Reverse Mortgage?

• No Monthly Payments Required: Focus on enjoying retirement without worrying about monthly mortgage payments.
• Stay in Your Home: A common misconception about reverse mortgages is that the bank takes ownership of your home—but that’s not true. With the CHIP Reverse Mortgage, HomeEquity Bank provides tax-free cash based on your home’s value, while you remain the owner. You’re simply responsible for property taxes and upkeep. According to an Ipsos survey conducted on behalf of HomeEquity Bank, 93%² of Canadians want to age in place, staying in the home they love. With CHIP, you can access your home’s equity and enjoy retirement on your terms.

• Tax-Free Cash: Because you are unlocking home equity, the funds received from the CHIP Reverse Mortgage are not added to your taxable income and do not affect government benefits such as Old Age Security (OAS).
• No Negative Equity Guarantee:  The CHIP Reverse Mortgage has a No Negative Equity Guarantee³, which means that if you meet your property taxes and mortgage obligations, HomeEquity Bank guarantees that the amount owed on the due date will not exceed the fair market value of your home. If the house depreciates and the mortgage amount owing is more than the gross proceeds from the sale of the property, HomeEquity Bank covers the difference between the sale price and the loan amount.

Is the CHIP Reverse Mortgage Right for You?

If you want to enhance your retirement lifestyle while staying in the home, you love — without dipping into your savings — the CHIP Reverse Mortgage could be a potential solution for you. To explore how you can access tax-free cash through your home’s equity, contact your Dominion Lending Centres mortgage expert to learn more about the CHIP Reverse Mortgage.

¹Some conditions apply.

²Survey conducted by Ipsos on behalf of HomeEquity Bank April 12-16, 2022

³As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date

Written by one of my lending partners HomEquity Bank

Refinancing Your Mortgage in 2025.

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

• Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.
• Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
• Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
• Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

• Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!
• This year on January 15, the federal government now allows  default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

No matter your plans or situation, please don’t hesitate to to call me anyime!

Cell: 250-893-0116  Email: ryan.erikson@modernmortgagegroup.ca

Written by MY marketing Team

First-Time Homebuyer Benefits.

Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:

New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.

Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.

The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!

Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.

First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.

First-Time Buyer Exemption: First-time home buyers are eligible for an exemption, reducing the property transfer tax you pay. If the fair market value of the property is:

• $500,000 or less, you can claim an exemption amount equal to the full amount of property transfer tax.
• Over $500,000 but no more than $835,000, the exemption amount is $8,000.
• Over $835,000 and under $860,000 then the exemption amount is proportionally reduced up to $15,200.

Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates.

Written by MY marketing Team at DLC