The home buyers’ tax credit provides a $5000 non-refundable income tax credit on a qualifying home bought after January 27, 2009. This is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5000. This works out to be a tax relief of up to $750. This is a one-time credit only in the tax year you purchase your home.

First -time home buyers  can now withdraw up to $25,000 per person from their RRSP, in order to purchase or build a home after January 27, 2009.
For more information, go to www.cra.gc.ca.

When the housing market is softening, which way you are moving in the market will decide if you come ahead or go backwards.  A softening market has a greater affect on the higher priced homes.  Whereas a $400,000 house will drop to $380,000, an $800,000 house can go down well over $100,000.  So if your next move is to a higher priced home, now would be an excellent time to make that move.  You would a decent price for your average home, but would get a real bargain on your expensive purchase.

If you are staying in the same area, in the same price range, you should be okay.  If you are downsizing from an expensive home to a lesser one, you will have to take a much bigger hit than the house you are purchasing.

Your child is getting married and you want to help out financially.  What is the best way to do this? 

Here are a few options:

GIFT:  You could give your child an outright gift.  The advantage to them is that any gift given while you are living is tax free.  If given after your death, the gift is subject to probate.

If you do not care about protecting this money,  then an outright gift would be fine.  Should your child and spouse separate, the spouse would get half of your gift in settlement.

2nd MORTGAGE: By being on title, you protect this money from being lost in a separation.  One disadvantage is that any gains on your part are subject to capital gains tax.  Another disadvantage for the couple is that they would need your signature in order to sell that home. 

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What’s the difference between a Customer and a Client?

In real estate transactions, buyer-clients are entitled to a higher level of service than buyer-customers.  Becoming a client typically involves signing a Buyer Representation Agreement with a buyer’s representative, who then owes you fiduciary duties.  This means that your buyer’s rep is expected to exercise discretion when acting on your behalf, including adhering to very specific responsibilities, obligations, and high standards of good faith and loyalty.

This means that a client has a signed agreement with the REALTOR®. A customer is typically represented by another REALTOR®.  However, if the REALTOR® is representing both the seller and the buyer, then both must sign a Dual Agency Agreement.  Richard, however, will not do a Dual Agency Agreement, because it is too difficult to be completely transparent with both parties.

Even if you are working with a Real Estate Team, as a buyer, you should sign a Buyer’s Representative Agreement with the agent who is working with you as a buyer. If not, that REALTOR® is legally working for the seller as a sub-agent.