The Bank of Canada has lowered their interest rate by 0.25%. The overnight rate was lowered from 0.75% to 0.5%. Prime Rate is now at 2.5%.
Assuming, of course, that lenders follow the Bank of Canada’s lead, we should see some lower variable rate mortgages offered in the near future.
If passed, Bill 2 – “An Act to Restore Fairness to Public Revenues”, will increase the corporate income tax rate for profitable corporations by two percentage points and introduce a more progressive personal income tax system. Corporate taxes will increase from 10 per cent to 12 per cent effective July 1, 2015. Small business tax rate will remain the same at three per cent. The new personal income tax rates will be:
- Income up to $125,000: 10 per cent
- $125,000 – $150,000: 12 per cent
- $150,000 – $200,000: 13 per cent
- $200,000 – $300,000: 14 per cent
- $300,000 and higher: 15 per cent
Also, the NDP government pledges to eliminate the health levy and scrap the PC-proposed fee increases on:
- vehicle licenses and registration
- land title searches and mortgages
- marriage licenses, birth certificates and death certificates.
More information on the Alberta’s NDP government tax Bill can be found here.
“We thought the Condo Corporation insurance covered this?”
A comment that has been said many times before, when it’s TOO LATE!
Here are some helpful questions you can ask your insurance provider;
- Can the Corporation insurance deductible (in some cases $5,000 to $10,000 or higher) be charged back to the owner of the unit in the event of insurable loss?
- Does the Corporation insure the improvements and betterments of the unit or only insure to the original standard set out by the builder or developer?
- If the unit is rented, do they need to ensure that the tenant has proper insurance and also provide a copy to the Condominium Board?
- If the unit is rented, will they be covered for “loss of revenue insurance” in the event the tenant has to vacate the unit until the repairs are completed?
- If the buyer is purchasing a Bare Land condominium, has the Corporation insured the common area of the project including the buildings and improvements?
These questions can be answered by the Insurer with providing a copy of the Corporation Insurance policy binder and a copy of the registered Bylaws of the Condominium Corporation.
It’s wise for each owner to place their insurance with the same insurer as the Condominium Corporation, this will minimize overlapping coverage. However if the owner decides otherwise, it will be best to obtain a copy of insurance policy binder from the Corporation including a copy of the registered Bylaws and then they can have their coverage by their own insurer.
Thanks to Carol Malko at Condo First Review for this information. You may contact her anytime for further information on this or any other questions you may have regarding condominium document concerns. Or visit Condo First Review or call Carol direct at 780-920-5552.
The PC budget increased the variable Mortgage Tax and Land Transfer fees from $1 to $6 for every $5,000 of property value which would have taken effect on July 1, 2015. It also increases the fixed fees for mortgages, land transfers, and land title registry searches. Today, Notley announced that the NDP will cancel the PCs’ tax hikes on mortgages and land titles.
Posted in Alberta News
Fort McMurray REALTORS® are offering their annual scholarships to students graduating in 2015. Students applying will need to be enrolled in post-secondary education in September 2015. Recipients will receive $2000 towards their future education. A total of 5 scholarships will be awarded once applications are reviewed.
These scholarships are available to students residing in the Fort McMurray Real Estate Board which includes the Regional Municipality of Wood Buffalo and Lac La Biche area.
Deadline to submit your application is June 10, 2015.
Download the FMREB Scholarship Application here.
On July 1, we’ll have dramatic hike for registering new land titles and mortgage documents will triple or quadruple the cost for many new property owners.
Both segments of land title and mortgage registration fees will rise. The flat-fee portion for each type of registration will go from $50 to $75, which is a 50% increase, but an extra $25 won’t break anyone’s budget. It’s the variable or per-dollar fee that new homeowners will really feel. That charge will rise to six times its current level.
Here’s what it will mean for someone who purchases a $500,000 home this summer and secures a $400,000 mortgage;
Currently, the new land title for that buyer costs $150 and the mortgage registration costs $140, for a total of $290.
In the new budget, a land title would cost $675 and mortgage registration $555. The new total: $1,230.
The Bank of Canada announced today that it will be keeping the overnight rate at 3/4 percent. Many were hoping that they’d drop the rates again. The next scheduled date for announcing the overnight rate target is April 15th, 2015.
The price of oil is on the rise amid speculation that demand is strengthening, curbing a supply surplus.