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It's easier than you think
If you have never owned a home and would like to just ask yourself the
following questions:
- Do I have an annual income of at least $15,000?
- Have I been employed with the same company for at least one year?
- If EI or IA forms part of my annual income, is it a regular annual occurrence?
- Do I have any savings, including RRSPs, for a 5% down payment? Or do I
have any immediate family who might give me the down payment as a gift?
If you can answer yes to these questions, you can afford your own home. Home
ownership.
Necessary documentation
To apply for a mortgage you'll need to have the following documents ready:
- Verification of employment and income
- Verification of source and amount of down payment (needed about two
weeks before signing the title)
- Credit report
- Self employed applicants need to demonstrate three full, consecutive
years of successful operation with copies of Income Tax Returns.
Other common issues
Property Purchase Tax is payable on most transfers of real property
pursuant to the Property Transfer Tax Act. In the case of first time home
buyers, however, this tax may not be payable if certain conditions are
met. Below is a list of some of these conditions:
 | The applicant must not have owned an interest in a principal
residence anywhere. |
| Canadian citizen or permanent resident of Canada and resided in BC
for at least one year immediately prior to the purchase. |
| the fair market value of the land and completed improvements must
not exceed $225,000 for the Cowichan Valley area. |
| The purchaser must meet various requirements in relation to
occupying and using the property as their principal residence. |
| Partial exemptions or refunds may be available in some cases. |
| The purchaser must meet several conditions in financing the
purchase:
 | The amount borrowed to finance the purchase (not including
amounts borrowed from related individuals), must be 70% or greater
of the fair market value. |
| Generally, financing must have a term of at least one year
following the date of registration. In some cases, however,
shorter term financing may be renewed or extended to qualify for a
refund of paid PPT. |
| There are limits on paying out the financing in the first year
of ownership. |
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The above list is not comprehensive. Please contact Cyndi to further discuss
any questions you may have.
Environmental concerns: The new Waste Management Amendment Act contains
many provisions for properties that might be classified as contaminated
sites. The Act may impose environmental liabilities on both vendors and purchasers, however, both parties are free to address in the interim
agreement who will bear responsibility for any environmental issues that
may arise.
Changes to the builders Lien Act.
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