(250) 253-1565 jeremy@jeremyosborne.ca

Buying Real Estate in Salmon Arm

Frequently Asked Questions

Who owns Royal LePage Access Real Estate?

Marv & Trena Beer, through their corporation own the brokerage and have a franchise agreement with Royal LePage Canada to operate Royal LePage Access Real Estate. They are residents of Salmon Arm are looking forward to further involvement in the community.

 

 

Why list with Royal LePage Access Real Estate and Jeremy Osborne?

Royal LePage Access Real Estate is a locally owned franchised real estate office with a history in Salmon Arm real estate going back over 26 years. It was formerly known as Shirley Real Estate.

Located in the core of the City of Salmon Arm, Royal LePage Access Real Estate has instant computer on-line service to the Okanagan-Mainline Real Estate Board (MLS Service) and has connections with the Royal LePage network across Canada and affiliated real estate companies around the world.

I offer MLS listing service, professional marketing techniques & personalized confidential service.

You can find more out about my marketing plans and tools by visiting my Sellers Information Page. Royal LePage Access Real Estate has an excellent reputation for having honest and ethical real estate service. Our unique sales tools and social media integration work to expose your property to more potential buyers within the region and around the world.

 

 

What areas do you assist buyers and sellers?

I am licenced to sell property in the entire province of British Columbia. I choose, however, to specialize in the entire Salmon Arm/Shuswap area. This includes: Immediate Salmon Arm area, Sicamous/Malakwa, Enderby/Grindrod, Blind Bay/Sorrento, Chase, North Shuswap, Seymour Arm, Anesty Arm, Eagle Bay/Wild Rose Bay, Tappen, Notch Hill, Skimikin, Silver Creek, Deep Creek, Gardem Lake, White Lake, Mara Lake and the Salmon Valley.

 

 

What types of properties do you sell?

If it can be sold, I can sell it. I am able and qualified to sell all types of Real Estate including the following: Residential, Strata-which includes townhomes, condos and apartments, Commercial,Lakeshore, Acreages, Farms, Vacant Land and Lots, Recreational, Businesses and Development Property to name a few.

 

 

How much of a down payment do I need to buy a house?

Usually, you will need to have a minimum of 5% down payment of the purchase price of a house in order to qualify for a mortgage. In some cases you may not need any down payment. There are a lot of products being offered when you are looking for a mortgage and I can put you in touch with a Mortgage Specialist that will be there with you through the entire process and help you make the right decision. For more information visit my Mortgage Info page.

 

 

How will I know I can afford to buy a house in a certain price range?

The Mortgage specialist that helps you through the process, whether it be a mortgage broker or a financial institution, will help you get pre-qualified for financing a house that you can afford. Getting pre-qualified is the biggest key to buying a house and knowing that you are comfortable with your purchase.

 

 

What is a conventional mortgage?

It is a real estate mortgage with a 20% down payment based on your purchase price or the appraisal value, whichever is lower. You are not required to pay high ratio fees on most conventional mortgages. Talk to your lender or mortgage broker for clarification. Mortgages can be amortized up to 40 years, but most common is 25 years.

 

 

What costs are over and above the purchase price of real estate?

You will have Notary/Lawyer Fees, Survey Certificate (if required), cost of Mortgage including Appraisal (if required), fire insurance premium, Property Purchase Tax (1% on first $200,000. & 2% thereafter), G.S.T. on legal fees and possibly on purchase price if property is brand new house or vacant land in a company name.

 

How do I evaluate my home?

You can Contact Me at anytime for a Market Evaluation of your home. This is a no charge, hassle free experience that I know you will enjoy.

 

 

How much does CMHC mortgage loan insurance cost?

To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.

The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.

What is BC Provincial Purchase Tax and who is exempt from that tax?

In BC when you purchase real estate there is a 1% on first $200,000 and 2% thereafter tax due upon completion if you do not qualify for the below exemption.

As a Purchaser you are exempt if:

  • You must be a Canadian Citizen, or Permanent Resident (as defined by Immigration Canada)
  • You must have lived for 12 months in British Columbia consecutively prior to your date of a property registration.
  • You have not ever owned a principal residence anywhere in the world at anytime.
  • You have never received an exemption or refund as first time home owner in BC before.

The Property qualification:

  • The value of the property is not more than $425,000
  • The land size is no larger than 1.24 acres (0.5 hectares)
  • The Purchased property will be your principal residence.

Mortgage financing you receive if:

  • It is at least 70% of the value of the property
  • The mortgage term of at least 1 year
  • The mortgage financing is registered with 7 days of your property registration date.

Requirements to keep the exemption:

  • You need to occupy the home within 9 days of the date of registration of the property in your name and continue to live in the home as your principal residence for min of 12 months after registration.
  • If you bought vacant land, a principal residence will have to be built within 1 year and you will need reside there for the reminder of the first year.
  • During the 1st year, there are limitations on how much you can reduce the mortgage or financing. the ministry after one year will send a letter to you asking for details of the financial account that you have registered against the property for your 1st year. it will be your responsibility to make sure the Government ministry receives all the financial information. If you do not report the financial details required, you wiill be assessed for the Property tax due
  • You can qualify for a partial exemption if you pay down your financing more than the limitation amount or if you move off the property within the 1st year.

 

Source: BC Government PPT Brochure November 2007

What are the tax implications for a Non-resident of Canada selling real estate?

The Income Tax Act of Canada provides that whenever a non-resident disposes of property, the non-resident is required to pay the appropriate amount of taxes on any gain. In order to satisfy the purchaser that the appropriate amount of taxes are being paid, the vendor must provide to the purchaser, on or before closing, a clearance certificate from Revenue Canada. This certificate is issued by the federal government and certifies that a certain amount of money is payable for the taxes. The amount owing is deducted from the sale proceeds and sent directly to the federal government by the vendor’s lawyer.

The clearance certificate is issued pursuant to section 116 of the Income Tax Act and is usually required on the closing date. It may be applied for in advance of the closing by the vendor, but not until there has been a contract of purchase and sale entered into by the vendor, with all subjects being removed. The wait for the clearance certificate is usually around 6-8 weeks, so in a perfect world, there would be enough time in a 6-8 week lead-time between when the subjects are removed and the completion date.

Complications can arise if the certificate is not obtained prior to the closing date. In such a case,the purchaser is required to hold back from the sale proceeds a percentage of the selling price. This percentage is either 25% or 50%, depending on whether the property is non-depreciable property (a residence of the vendor) or depreciable property (the property has been rented). The transaction closes with the money remaining in a lawyer’s trust account until the certificate is obtained. Once the certificate is obtained, the taxes are paid from the hold back and the vendor receives any amount left over.

Please note that the hold back is based on the selling price, not the equity in the property. If there is financing on the property, the vendor may need to pay this financing from other sources.

For further information, please contact your accountant.