iPad Giveaway

Who is eligible?

Everyone who refers business that closes between March 1 – May 31, 2011 and the client being referred is eligible. (Dominion Lending Centres – Mortgage Services Inc. Associates are not eligible).

What is the prize?

An Apple iPad valued at over $650.

How to win:

Every referral received that closes between March1 and  May 31, earns the referrer one ballot and the client one ballot into the draw. There is no limit on how many ballots one referral source can earn. On Friday, June 10, 2011 the winner will be announced.

We Simplify Mortgages for you!

About the Purcell Mortgage Team

JoAnne and Todd Purcell are your dedicated Calgary Mortgage Brokers. Utilizing a non-assuming approach to customer relations, JoAnne and Todd simplify mortgages, for you!

What are the new rules set to affect the mortgage industry March 18, 2011?

1. Lower amortizations – decreased from 35 years to 30 years
2. Lower Loan to Value (LTV) for refinances – decreased from 90% to 85%
3. No more government backing on Home Equity Lines of Credit (HELOC)

The government of Canada made a huge impact on how Canadians obtain mortgage financing with the changes made April of 2010. Decreasing the LTV for refinancing a property from 95% to 90% was a major turning point in that it meant no longer could Canadians continuously reset their mortgages back to 95% anymore, they had to start building equity beyond that bare minimum. The new change to take place reducing the LTV even further to 85% is just another step by the government of Canada to encourage us all to stop living outside of our mean and stop using our homes as bank cards.

When you take a step back the plan makes a certain amount of sense, “If I cannot access the money, I cannot spend the money”. But will it really detour the general population from racking up the debt? Is it really the mortgage industry that requires additional rules and regulations to help us wisely invest and spend our money?

Should some of the responsibility of the Canadian debt situation be put back onto the shoulders of the institutions enabling high consumer debt?  Perhaps, credit card companies shouldn’t increase credit card limits so readily or more due diligence should be done by those financing auto loans or leases to ensure Canadians are staying within a balanced budget. What we are trying to illustrate is that putting more regulations on one of the few regulated financial industries may only be part of the solution. Yes, it is a great idea to for people to maintain some equity in their homes, but perhaps there should be stricter regulations placed on other types of financing such as automobile financing and credit card debt.

“Says Mauris: “Our Industry is under the microscope right now, and making sure we have a strong voice in articulating our concerns is more important than ever. At the centre of our concerns is changing mortgage rules, amortization terms, qualifying minimums and unsecured consumer debt. Ottawa seems to be looking towards mortgage debt as a key driver of the highest Canadian debt load in history, when in fact it’s credit card and unsecured debt that is creating many of the financial problems that Canadians are experiencing.”

“[At DLC] we look at 10’s of thousands of deals every single year and anytime we can’t qualify someone it’s typically for due to unsecured and credit card debt.”  Quote from Gary Mauris, President of DLC in MortgageBrokerNews.ca

In many cases, refinancing your home to pull out equity (should you have equity available to pull out) is still a good option for many Canadians depending on the individual circumstances for refinancing.  It is recommended that you sit down with a mortgage professional and have them review your personal situation.  A lot of the time a mortgage professional can show you ways to lower your total monthly payments by consolidating debt and at the same time still pay your mortgage off ahead of schedule.  What the government is trying avoid is Canadians using their homes as an ATM machine and refinancing over and over again just to end up in over their heads again.

In order for Canadian’s to have a good balance in their own budget and cash flow, more focus needs to be put on educating Canadians on how much of their gross income should be directed towards not only housing costs, but also transportation and personal debt.   In our industry we see many borrowers looking to purchase a home but unfortunately 25% or more of their personal income is going toward transportation costs, on top of that are credit card debts and other loans.  Leaving little in their personal budget for savings and unforeseen expenses.

The solutions? Educating Canadians on how to spend their money properly, how to budget properly, how to invest properly, how to avoid bad debt while acquiring good debt.

The Purcell Mortgage Team

JoAnne and Todd Purcell are Mortgage Industry Leaders in Calgary. Their devotion to taking care of clients needs and finding the best solutions available is what sets them apart in the industry. When you are looking for a Calgary mortgage professional, trust in the professionals of the Purcell Mortgage Team. For industry leading news on what is affecting your home, check out Calgary Mortgage News.

What Qualifies as an Eligible Dwelling?

The CRA website defines an eligible dwelling as a housing unit (house, cottage, condo, etc.) that is the principal residence of one or more of your family members at any time between January 27, 2009 and February 1, 2010.

Effectively, this means that any dwelling inhabited by yourself, your partner (through marriage or common-law), or your children are eligible for the tax credit.

What You Need to Claim the HRTC

Unlike most tax credits, that require vast amounts of documentation to verify your eligibility, the HRTC is quite simple to claim.  You simply need to provide sufficient documentation to prove that you did purchase the improvement you are claiming.  Acceptable documentation includes:

• Contract agreements, invoices, and receipts. So long as these documents clearly state the vendor/contractor, the business address, and the GST/PST registration number.

• The date when the goods/services were delivered/performed

• Proof of payment – Obviously this is needed to prove that you fall into the stipulations mentioned above.

Questions About the HRTC?

This is just a brief overview of the home renovation tax credit.  If you have questions that aren’t addressed here the CRA has set up a minisite that should be able to answer all of your questions.  It can be found here: http://www.cra-arc.gc.ca/hrtc/.

We think that the home renovation tax credit is a great “excuse” for Canadians to go out and renovate!  Receiving a tax credit for performing the renovations that you have been wanting to perform only sweetens the deal!

About the Purcell Mortgage Team:
The Purcell Mortgage Team are an industry-leading pair of mortgage professionals who have been serving Calgary for several years. JoAnne Purcell was ranked within the Top 50 Canadian Mortgage Professionals in the CMP Magazine. If you are in need a reputable calgary mortgage broker please contact us today!

The Purcell Mortgage Team are experts on Calgary mortgages!