92 replies to this topic

[Bob Fugger]

Yes.

 

EDIT: I stand corrected.  Thank you, Robb.

 

 

https://www.canada.c...uyers-plan.html

Edited by Bob Fugger, 20 March 2019 - 08:55 AM.

[Mike K.]

Yes, currently she would qualify but the rules haven’t been finalized. But remember this applies only if both of you have a combined income below $120,001, and for all we know the perk may only apply if nobody in the household has owned real-estate.

[Robb]

If I own a home in my name only, and our next home we put in my wife's name only, who has never been on a title, does that make her a first time home buyer?

 

Not for the RSP Home Buyers Program.  I have to assume the rules will be the same for this plan.

[Bob Fugger]

Yes...and for all we know the perk may only apply if nobody in the household has owned real-estate.

It would be fairly easy to engineer that.  I just separately prepared the taxes of two senior "roommates."  They both listed their marital status as "Divorced" and the woman signed the declaration in her married name (i.e., matching the surname of the man).  For that much dosh, I'd separate from my wife (on paper) and even rent her a room somewhere, so that she has a tenancy agreement in her name. 

 

EDIT: As Robb has very astutely pointed out, the RSP Home Buyers' Plan considers you to be a first-time home buyer only if, "in the four-year period, you did not occupy a home that your or your current spouse or common-law partner owned."

 

https://www.canada.c...uyers-plan.html

Edited by Bob Fugger, 20 March 2019 - 08:58 AM.

[LJ]

  For that much dosh, I'd separate from my wife (on paper) and even rent her a room somewhere, so that she has a tenancy agreement in her name. 

 

 

I suggested that to my wife so we could income split, it didn't go over well.

[MarkoJ]

not sure if this will have a big impact on the market in Victoria....just more bureaucracy to administer this program.

[threePs]

Works like so:

Up to a $480,000 pre-sale or re-sale mortgage, if you earn $120k per year. The maximum CMHC will play with is 4x your annual income up to $120k (I’m not clear what your minimum must be).

If you put down a minimum 5% down payment for a $500k property, which is $25k, the CMHC will throw in 10%, or $50k, for a mortgage of $425k. They’ll throw in only 5% on a resale, though.

You don’t have to pay the $50k back until you sell, or earlier if you’d like.

The final details of this program haven’t been formalized yet.

Doesn’t this scheme seem similar to the BC Liberal first time buyer program that was eventually ditched?

 

My question is, can this be doubled up on the BC Housing units that are now coming up all over the place? (Vivid, Cook/Hillside, Speed/Francis). If you can use these both in tandem, I think it is a killer argument for someone like myself to buy a place if it's their first time. With my understanding is that BC Housing's program is just an equity loan (5%) with no payback until 5-years in. Whereas CMHC's is a equity loan (10%) (no-interest?) that is repayable at the time of sale. That means I could have up to a 15% down payment borrowed from senior gov't on top of a personal 5% down payment.

 

Would love to know if anyone has looked into this or knows if it is allowed.

[Mike K.]

There are many details that are yet to be confirmed by the feds, and that's likely one detail that will be worked out in the coming months.

[magmazing]

According to the BC Housing website faq, their equity loan program ended last September. https://www.bchousin...ome-partnership

[Mike K.]

Ah, that’s right! It was too onerous and its uptake was dismal, from what I recall.

[Victoria Watcher]

confusing programs will have low uptake.  sometimes by design.  then you can get all the political gain with lower actual money spent. 

 

if the government just gave a straight $10,000 cash to first-time buyers it'd work better.  it'd also drive up prices.

 

but they could also create the same effect by lowering down payment requirements from 5% to 1% or 2%.

Edited by Victoria Watcher, 31 March 2019 - 06:42 AM.

[threePs]

According to the BC Housing website faq, their equity loan program ended last September. https://www.bchousin...ome-partnership

 

I'm talking in regards to these units that are being built in the Vivid, Cook/Hillside, Speed/Francis though. Arent these "affordable home ownership buildings backed by BCHMC?

[Mike K.]

Oh, I see what you mean.

 

BC Housing's program at Vivid did not provide purchasers with any money for a downpayment, etc., it just lowered the cost of the unit but required the purchaser to meet certain income and post-possession criteria.

 

I believe when Vivid first launched homes were in the 8% below-market range.

 

So in other words, you still had to qualify on a $350,000 purchase, but had BC Housing not helped finance the project, that unit would have been comparably priced at around $380,000.