Now that its tax time don't forget if you bought a home this past year to claim the First Time Home Buyer tax credit.  What is FTHB tac credit you ask?

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

This is an ongoing tax refund, so if you missed out for the past tax year... don't worry it will still apply to home purchased this year.

Insuring the ownership of your property (referred to as "title") is just as important as insuring your property and its contents from physical loss or damage.

Among other things title insurance can cover previous renovations gone wrong, gaps in registering the title, encroachments as well as title theft.
It is a one time fee based on the price of the home.  For a few hundred dollars it is peace of mind. 

Title insurance can be purchased on existing Homeowner Title Insurance Policy is for those who already own their home, but did not obtain the protection of title insurance when they first purchased their home.

Why do I need this Policy?

Even if you are the rightful owner of a home, there are instances such as real estate title or mortgage fraud, when your title can come into question. Generally, the losses from real estate title or mortgage fraud are catastrophic with homeowners paying thousands of dollars in legal fees to defend their title, and lenders possibly losing the full amount of their mortgage.

By obtaining an Existing Homeowner Title Insurance Policy, you are purchasing the peace of mind associated with knowing that your policy contains comprehensive coverage for losses due to many forms of title and mortgage fraud and it includes a duty to defend your title, including paying legal fees.*

A Typical Example...

1. A fraud artist obtains title to a property via a fraudulent transfer document (a deed).
2. The fraud artist goes to a bank and obtains the mortgage funds.
3. The mortgage is then registered against the property.
4. When the fraud artist does not make any mortgage payments, the lender will serve notice that it intends to sell the property, and the scheme is revealed to the legitimate owner when they receive the notice that the lender is trying to sell their property.

For more information, give me a call.  I would love to talk to you more about it!

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire. It will also increase the monthly payments required approximatly 1/2 percent which in dollars and cents is approx $75 per month on a $250,000 home. 
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages.  There are many costs associated in selling a home ie: realtor fees, real property reports, pay out penalties and many times the previous 90% LTV did not allow the customer to net enough money to pay off these things and therefore put them in a deficit. Falling housing prices only made this worse and measures needed to be taken to keep Canadians in the black. 
• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions. It is hoped that it will curb consumer spending on items comsumers can not actually afford.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.