Repeat Buyer

As a repeat buyer, you have already been through the buying process at least once already. This past experience will have prepared you to know what is involved to make your next purchase. However, should you need to jog your memory please visit our First Time Home Buyers section or look at our Homebuyer's Information Kit. These two useful sections will provide you with a quick refresher on what is involved in buying a property and obtaining a mortgage. However, as a repeat purchaser there are a couple facts that you may be unaware of.

Did you know that you are able to purchase another property for as little as 5% down?

If you are purchasing another principal residence, regulations have now been amended that allow a downpayment of as little as 5%. Previously, this program was only for people purchasing for the first time. Of course, mortgage insurance through CMHC or GEMI would be required.

Did you know that you might be eligible to use funds from your RRSP towards the downpayment?

Normally the use of RRSP's to be used as a downpayment is reserved for people buying for the first time. However, Revenue Canada does have some exceptions in place that may allow use of these funds for re-purchasers. As an example, if neither you nor your spouse owned a home that you occupied as your principal residence during the past 5 years prior to the new purchase you may be eligible to withdraw up to $20,000 each from your individual RRSP account to be used as the downpayment. This withdrawal would not be taxable. You must repay the withdrawal with equal annual payments over a 15-year period. Should you have used your RRSP's on the previous purchase, you must have repaid the amount in full prior to this new withdrawal. This is but one example and is a brief overview. Additional regulations do apply. There are other exemptions that Revenue Canada may make in this program. For full details and other exemptions please contact Revenue Canada directly or speak to one of our Mortgage Specialists.

Did you know that you might have to pay the property purchase tax?

In the Province of B.C. first time homebuyers on a principal residence are exempt from paying the Provincial Property Tax if their purchase price does not exceed a set amount. A first time homebuyer is defined as someone who has not previously owned an interest in a principal residence anywhere. For a repeat buyer there is no such exemption thus you must factor in this cost when making the purchase.

These are but a few facts that you might not have known. As a repeat buyer your situation and options are different than those buying for the first time. With rules, regulations and exemptions constantly changing, our team of Mortgage Specialists are an informed source that you are able to rely on. With their experience and knowledge they will have the answers to your questions.and find you the best rate.