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Home Seller’s Leaving Canada

 

Realtors, acting for Sellers, are not always checking on whether the Seller is going to be leaving Canada after signing the Agreement of Purchase and Sale, and before the closing of the sale. 
 
Paragraph 17, in the standard Agreement of Purchase and Sale, deals with the non-residency of the Seller on closing.  This clause is not being brought to the Seller’s attention, and they are quite surprised to learn that 25% of the sale price, not the equity in the property, must be held back and paid to Revenue Canada, if they have not obtained a Section 116 Clearance Certificate under the Income Tax Act. 
 
The failure to alert Sellers to the need to obtain the Clearance Certificate can delay closings, and in some circumstances, kill deals, if the Buyer is having second thoughts. 
 
The Seller must be a resident of Canada, and the fact that they are Canadian Citizens does not have any bearing on the matter. 
 
It is also important to note that the fact that they are in Canada on the closing day does not necessarily make them residents especially if the truck is packed and as soon as they receive their cheque, they leave the country.  Many Lawyers Residency Declarations require the Seller to swear that they will be residents for at least thirty days after the closing.
 
If on the listing the property, agents determine the residency status, the application information can be gathered and filed immediately with the Canada Revenue Agency upon the Agreement of Purchase and Sale being signed.  The Canada Revenue Agency usually needs about 4-5 weeks to issue the certificate so, it is important to get this dealt with immediately.  This will save precious time and ensure the Section 116 Clearance Certificate is available on closing.  The Seller will be grateful and the agent will receive kudos for being so knowledgeable.

Brought to you by: Paquette Travers & Deutschmann













Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Smartphones: Increase Your Productivity

 

Are you getting the most out of your smartphone? Increase your productivity with these apps.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Make your Home Energy Efficient

 

Save money with these energy efficient tips from MERIX Financial. Small improvements to your home can not only help the environment but save you money as well.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Half of Canadians doing more to pay down their mortgages: CIBC

 
21.07.2014 resized 600

TORONTO - A new survey says Canadians, on average, expect to be mortgage-free by age 58, one year later than in a similar poll a year ago.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Home sales heat up after tepid spring

 

OTTAWA — Canadian homes sales heated up in June to their best pace since March 2010 after a sluggish start to the year due to the frigid winter and late spring.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

‘HGTV effect’ pushes home renovation spending to record $63-billion

 
03.07.2014 resized 600

TORONTO • It could be just the impact of all those home-renovation television programs, but Canadians are fixing up their properties like never before, according to a new report.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Monster May for housing sales doesn’t mean the market won’t slow

 
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May was a phenomenal month for existing homes sales across the country but the jump in activity might say more about the harsh winter than the state of the market.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Here comes the echo boomer to save the housing market

 
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There’s a new kid in town ready to save Canada’s housing market and maybe even the economy — at least for a few more years.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

Canadian home prices rise a modest 0.8% in May, typically one of the strongest months for sales: Teranet

 
18.06.14 resized 600

TORONTO — Canadian home prices rose in May but the pace of 12-month home price appreciation decelerated slightly, the Teranet-National Bank Composite House Price Index showed on Thursday.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365

OECD calls for Canada to shift mortgage risk from taxpayers to private-sector

 
12.06.14 resized 600

OTTAWA • Despite aggressive moves by the federal government to limit consumers’ exposure to an overheated housing sector, a major global think-tank is warning Ottawa that even tougher measures are needed to protect taxpayers.

Richard Kitts, AMP
President/Mortgage Broker
Tristar Funding Corporation o/a The Mortgage Centre
rkitts@mortgagecentrekw.com
519-743-4365
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