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Bank of Canada Announces Welcome Rate Cut - What It Means for You

The Bank of Canada has reduced the overnight rate to 4.75%, signaling a shift towards less restrictive monetary policy. This adjustment, paired with ongoing balance sheet normalization, is poised to influence both current and prospective homeowners significantly.

Current Economic Overview:

As we navigate through 2024, global economies are showing mixed signs of growth and stability. While the United States is experiencing a slower-than-expected expansion, Europe and China are witnessing a pickup in economic activities. Back home, after a brief stagnation, Canada's economy is back on a growth trajectory, albeit at a modest pace of 1.7% in the first quarter, underpinned by strong consumption and business investment.

Impact on Your Mortgage:

This rate cut is pivotal for variable-rate mortgage holders, potentially lowering the interest costs associated with these loans. With lenders expected to adjust their prime lending rates to 6.95%, now is an excellent time to review your mortgage strategy. Whether you're considering buying, refinancing, or renewing, the changing rates could impact your decisions and financial planning.

Looking Ahead:

The Bank's latest move reflects increased confidence that inflation will continue its descent toward the 2% target. However, with the economic landscape still presenting various risks, especially in terms of inflation dynamics, wage growth, and international developments, staying informed and proactive is more crucial than ever.

*Information provided by 
Shannon Mayhew, MBI - Mortgage Broker 
778-858-9848 / www.westcoastbroker.ca 

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Mortgage Pre-Approval vs. Pre-Qualification

Are You Looking to Buy Your First Home?

Are You Thinking About Making a Move?

No matter your goals, there are several steps you can take in advance to streamline the mortgage process and make it more manageable!

Getting Pre-Qualified

The purpose of mortgage pre-qualification is to help you understand what you can afford when shopping for a new home. Pre-qualification involves assessing your financial status, which allows you to establish a budget and determine your potential monthly payments.

By downloading my app, you can get pre-qualified in under 60 seconds! This tool will also provide you with an estimate of your monthly mortgage payments and help you compare various payment schedules.

Getting Pre-Approved

While pre-qualification gives you a general idea of your affordability, pre-approval is a step further. Pre-approval means that a lender has officially stated (in writing) that you qualify for a mortgage and specified the amount based on your submitted income and credit history documentation.

A pre-approval typically includes details such as term, interest rate, and mortgage amount, and is valid for a brief period, assuming all conditions are met.

Benefits of Pre-Approval

  • Confirms Your Budget: It confirms the maximum amount you can afford.

  • Locks in Interest Rates: It can secure an interest rate for 90-120 days while you shop for your new home.

  • Strengthens Your Offer: It assures sellers that securing financing won't be an issue, which is crucial in competitive markets with multiple offers.

Important Considerations Post-Pre-Approval

Once you obtain pre-approval, it's crucial to maintain your financial and employment status until the mortgage application and sale are complete. Avoid making changes such as quitting or changing jobs, buying a new car, transferring large sums of money between bank accounts, leaving bills unpaid, or opening new credit cards. Any changes could jeopardize your pre-approval status.

By taking these steps, you'll be better prepared and positioned for a smooth and successful home-buying experience.

Let us help you find your dream home or guide you through a successful real estate transaction. Your satisfaction is our priority!

Contact us today for more details or to explore your options, discuss your needs, and benefit from our expertise.

Phone: 604-530-0231


Email:
jen@jenniferclancey.com / colleen@colleenfisher.ca

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In the News: 2.2 Million Canadian Mortgages are set to renew in 2024/ 2025. Are you ready?
You may have seen this stat making headlines recently:  2.2 million Canadian mortgages are expected to be up for renewal by the end of 2025. This number represents half of Canadian Mortgage Holders!  This turning point presents a significant moment for homeowners, as the majority will likely face an increase in their monthly payments if they choose to renew their mortgages under the same terms. With the dynamic shifts in the mortgage landscape, it's crucial to understand what this means for you and how you can navigate your mortgage renewal strategically.

The Impact of Renewal
Renewing your mortgage typically means continuing with the same amortization schedule—the total time it will take to pay off your mortgage in full. This process does not inherently involve making adjustments, such as taking out equity or extending your amortization period. It’s a straightforward path but not necessarily the most advantageous.

Consider a hypothetical scenario reflective of the current market trends. In June 2019, a homeowner might have purchased a property with a $500,000 mortgage at a rate of 3.65%, with a 25-year amortization and a monthly payment of $2,536. Fast forward to a June 2024 renewal under new conditions with a decreased principal of $432,577 but a higher interest rate of 5.24%. This adjustment results in a new term and an increased monthly payment of $2,898, despite the shorter 20-year amortization schedule. 

You Have Options
It's important to remember that renewal is just one option. When your mortgage term comes to an end, you have the flexibility to renegotiate your mortgage terms or even switch lenders to secure a more favourable deal. This could involve adjusting the amortization period, locking in a different interest rate, or extracting equity for other financial needs.

Seeking Expert Advice
Before you sign on the dotted line, consider consulting with a mortgage expert. A professional review of your renewal offer could reveal opportunities to optimize your mortgage setup, potentially saving you thousands of dollars over the term of your mortgage. With so much at stake, personalized advice tailored to your financial situation and future goals is invaluable.

Act Now
For the 2.2 million Canadian homeowners facing renewals in the next couple of years, now is the time to start preparing. Assess your current financial health, consider how changes in the market might affect your mortgage payments, and explore your options. Don’t hesitate to reach out for expert advice to ensure that your mortgage renewal decisions align with your long-term financial stability.

As your mortgage term approaches its end, remember that you hold the power to shape your financial future. Take the initiative to understand your options, seek out the best possible conditions, and make informed decisions that will benefit you for years to come.

*SHANNON MAYHEW, MBI
MORTGAGE BROKER
T 778.858.9848
www.westcoastbroker.ca
Vancouver, B.C.
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8 new housing policies announced in the 2024 federal budget

On Tuesday, April 16th, the Canadian federal government unveiled the 2024 budget. The annual fiscal announcement detailed dozens of new and ongoing initiatives aimed at creating new housing, along with policies targeted at making renting and home ownership more affordable for Canadians.

Here are eight standout housing policies announced in this year’s budget:

Canadian Renters’ Bill of Rights

More Canadians are renting for longer periods of time before they transition into home ownership. The 2024 budget announced several measures intended to effectively protect tenants and strengthen their path to buying real estate.

Budget 2024 announced the creation of the Canadian Renters’ Bill of Rights, which proposes a nationwide standard lease agreement and would require landlords to disclose rental price history on properties. Through the Canadian Mortgage Charter, the Budget also calls on banks and lenders to allow tenants to report their rental payment history to credit bureaus in order to better their credit scores, thereby strengthening their future mortgage applications.

Additionally, $15 million over five years has been allocated to a Tenant Protection Fund, which will provide legal support to tenants.

Funding for the construction of new homes

The federal government is promising billions of dollars in spending toward the construction of new housing.

The 2024 budget unveiled the Canada Builds initiative, which will enable the country’s Apartment Construction Loan Program to partner with provincial governments in order to build more rental accommodation. Starting next year, the program will receive $15 billion in additional funding for the creation of 30,000 new homes, topping up the program’s current funding allocation to over $55 billion for a total of 131,000 units, set to be built by 2031.

The Canadian Housing and Mortgage Corporation’s (CMHC) Housing Accelerator Fund will also receive $400 million in financial support to build 12,000 new housing units.

Infrastructure Canada will receive $6 billion over the next decade towards the Canada Housing Infrastructure Fund, which will support the creation of water and waste infrastructure needed for new communities. $100 million over two years will also be dedicated to Employment and Social Development Canada to support apprenticeship and skilled-trade programs that address the workforce shortage needed to build housing.

30-year mortgage amortizations for first-time buyers of new homes

Through the Canadian Mortgage Charter, the 2024 budget announced that starting on August 1st, first-time buyers purchasing a newly constructed home can access 30-year mortgage amortizations, a product that has previously only been available to those with a down payment of at least 20%.

In practice, a longer amortization period would allow borrowers to pay off their mortgage over an extended timeline, thereby reducing their monthly payments.

Amendments to the Home Buyers’ Plan

Saving for a down payment is one of the largest hurdles new homebuyers face. To make it easier to access funds for a home purchase, Budget 2024 unveiled an amendment to the withdrawal limit on the Home Buyers’ Plan, which has been increased from $35,000 to $60,000 as of April 16th.

Support for single-family home suites

To encourage the creation of secondary housing units, the 2024 budget announced $409.6 million over four years towards a Canada Secondary Suite Loan Program, run by the CMHC. This will enable homeowners to borrow up to $40,000 in low-interest loans towards the cost of adding a secondary suite to their homes, which can be used for multi-generational living purposes or as a source of rental income.

Increase to the inclusion rate on capital gains above $250,000

Effective June 25th, Budget 2024 proposes an increase to the inclusion rate on capital gains realized annually above $250,000 by individuals, corporations, and trusts from one-half to two-thirds, by amending the Income Tax Act. This would include the sale of secondary residences and investment properties.

Currently, only 50% of capital gains are taxable. The 2024 budget would increase the inclusion rate to 66% on capital gains above $250,000. The sale of principal residences will continue to be exempt from capital gains tax.

New funds for post-war housing catalog

In December 2023, the federal government announced that it would be modernizing its post-war home design catalog, providing standardized home blueprints that would accelerate the creation of much-needed housing. The 2024 budget unveiled $11.6 million towards the development of 50 home designs, which includes plans for row homes, fourplexes, sixplexes, accessory units, and modular homes.

Conversion of public lands into housing

Land scarcity is one of the main barriers to the creation of new housing. The federal government intends to utilize public lands in order to free up space where new housing can be built, with a goal of building 250,000 new homes by 2031 under the Public Lands for Homes Plan. In Budget 2024, the government announced plans to lease public land to builders in order to lower capital costs and review the federal lands portfolio to identify more usable lands for housing. The budget also outlines plans to reduce the footprint of federal office buildings and convert these spaces into housing.

Over the next three years, $5 million will be allocated to the Canada Lands Company to support initiatives to build properties on public lands.

*Information provided by Michelle McNally
Communications manager, Royal LePage

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Whether you’re looking to sell your home this year, or just want to make some updates, I have put together six small home improvements that can make a BIG impact on your space! From improving saleability to refreshing your home, here are some simple and affordable ideas to help get you started:

  • Painting: One of the easiest ways to spruce up your home for a refreshed vibe or sale is to add a new coat of paint! While it is a relatively simple task for a new homeowner to take on, you might be surprised at how many people will pass on a house because they are not a fan of the paint colors or the flooring. A fresh coat of paint - especially more neutral colors such as beige, cream, light grays, and soft blues or greens - can do wonders to make a home feel appealing.
     
  • Light Fixtures: I don’t know about you, but I haven’t taken a good look at my light fixtures in a while. However, potential buyers will! Light fixtures are another low-cost and relatively easy improvement you can make to your home. Upgrading to newer styles and ensuring they are clean, with fresh LED bulbs, will help add an extra sparkle to your home!
     
  • Update Your Hardware: Another overlooked aspect of a home are light switches and door handles. If your home is 20 years old, most likely your white light switch covers are not so “white” and your door handles are a little worn down. These are a cheap and easy replacement that will go a long way to boost your interior!
     
  • Swap Out Your Window Coverings: Just like with a fresh coat of paint or new hardware, swapping out your window coverings is a small change that can make a big impact. Change your stale, white plastic blinds for wooden slats, or update your curtains to something fresh and vibrant!
     
  • Refinish Your Cabinets: The kitchen is known to be a central space in most homes, but did you know roughly 80% of homebuyers feel that it is the most important space to consider when deciding on a new home? While a full kitchen renovation may be out of the question and all-new kitchen cabinets can cost thousands, there is a third option. Refinishing or repainting your cabinets is a great alternative for breathing new life into your kitchen!
     
  • Curb Appeal: They say don’t judge a book by its cover but, when it comes to selling your home, first impressions matter. This is where curb appeal comes in! If a potential buyer pulls up to see overgrown weeds, clogged gutters, or cracked concrete, they are already going to have a negative impression of the home and it will be harder to impress them once they are inside. Attending to landscaping and any outside maintenance needs will go a long way in making your home more appealing. A pressure wash and a new coat of exterior paint can also do wonders to give your home a facelift!
     

By putting the effort into completing a few small changes around your home, you can reap big rewards when it comes time to sell - and increase your comfort in the interim!

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Here are the latest measures outlined in the 2024 budget by the BC Government that directly impact the mortgage industry and housing market in British Columbia.

Property Transfer Tax Exemptions: The 2024 budget introduces several changes to the Property Transfer Tax exemptions:

1. First-Time Homebuyers’ Program: The threshold for this program has been increased to reflect current market conditions. Qualifying first-time buyers can now benefit from a complete exemption on the first $500,000 of homes valued up to $835,000, potentially saving up to $8,000. According to the BC Government, this expansion is expected to make approximately 14,500 more individuals eligible for support in purchasing their first homes.

2. Newly Built Homes: Buyers of newly built homes valued up to $1.1 million will also see reduced costs through a newly implemented exemption. 

3. Purpose-Built Rental Buildings: Eligible purpose-built rental buildings with four or more units will receive a property transfer tax exemption until 2030.
The BC Government estimates that adjustments to property transfer tax exemptions will save individuals approximately $100 million per year.

BC Home Flipping Tax: Starting from January 1, 2025, the BC Government is introducing the BC Home Flipping Tax as part of the Homes for People plan. This tax aims to deter speculators from inflating property prices by taxing profits made from selling residential properties within two years of purchase. There will be specific exemptions for life circumstances such as divorce, death, illness, and relocation for work. Revenue generated from this tax will be allocated towards building affordable housing across the province.

BC Builds: Budget 2024 allocates $198 million in new funding for BC Builds, a program that supports the development of new housing suitable for middle-income individuals and families. BC Builds utilizes government-owned and underused land, as well as lower borrowing rates, to offer low-cost financing for construction projects. By streamlining the development process and working closely with various stakeholders, BC Builds aims to deliver affordable housing within 12 to 18 months, significantly shorter than the current average timeframe of three to five years. These new units will be income-tested, ensuring that they remain affordable for middle-income earners, thereby addressing the housing needs of BC communities.

Our ongoing efforts: Our Government Relations Committee is actively reviewing these measures and continues to collaborate with industry partners to advise on housing policy that meaningfully supports homeownership and housing affordability in BC.

READ BC BUDGET 2024 - HOUSING MEASURES - https://strongerbc.gov.bc.ca/housing/ 

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New housing legislation to look out for in 2024

With a new year now underway, Canadians can expect to see a variety of changes coming to federal, provincial and local government housing legislation in 2024. 

From updated taxes to revised urban planning regulations, new housing laws and policies will roll out across the country in the coming months. Several of these policies promise to boost much-needed housing supply, which remains at a critical shortage in both the resale and rental segments.  

Here are the new housing policies that you should know about in 2024. 


Federal Policies

Short-term Rental Restrictions

In November, 2023, the Government of Canada unveiled its 2023 Fall Economic Statement, which details new tax, spending and inventory-boosting measures. This includes new efforts to incentivise short-term rental operators to return properties to the long-term housing market. Going forward, income tax deductions will be denied in cases where short-term rental owners are not compliant with provincial or municipal licensing, permitting or registration requirements. This applies to all expenses incurred on or after January 1st, 2024.

You can read more details from the 2023 Fall Economic Statement here

Pre-approved Home Design Catalogue

To boost construction of new home supply, the federal government intends to revive a post-Second World War housing policy of standardized, pre-approved home designs, making it easier and faster for developers to build new properties. The modern version of the catalogue will focus on creating blueprints for a variety of low-rise housing, and potentially higher-density homes and different forms of building construction, such as modular and prefabricated homes. 

Consultations for the home catalogue are expected to start in January, 2024.


British Columbia 

New Short-term Rental Housing By-laws

In late 2023, the provincial government introduced the Short-Term Rental Accommodations Act which imposes stricter regulations and enforcement on short-term rental housing. As of May 1st, 2024, the Act will require short-term rental hosts to display a valid business licence number on their listing in regions where a licence is required by the local government. Short-term rentals will be limited to the host’s principal residence, plus one secondary suite or accessory dwelling unit, in select communities. 

Additionally, protections for ‘non-conforming use of property’ will no longer apply to short-term rentals. Later in the year, the British Columbia government will implement a short-term rental registry, and require rental platforms to share data with the Province. 

Expanded Speculation and Vacancy Tax

The province has expanded its existing speculation and vacancy tax laws to 13 new communities, including Penticton, Courtenay and Kamloops. Homeowners in applicable regions will be required to declare how they used their property in 2024 for the first time in January, 2025. 

Introduced in 2018, the speculation and vacancy tax is 2% for individuals who don’t pay the majority of their taxes in Canada, or 0.5% for Canadian citizens or permanent residents who pay the majority of their taxes in the country. 

Updated Zoning Rules

New zoning laws are under consideration to deliver more small-scale, multi-unit housing across British Columbia. Under the proposed legislation, one secondary suite or one laneway home will be permitted in all communities throughout the province. In most areas within municipalities of more than 5,000 people, by-laws will also be adapted to allow three to four units on lots currently zoned exclusively for single-family or duplex residential, and permit six units on larger lots close to transit stops with frequent service.

Additionally, the new zoning rules would require municipalities to update community plans and zoning by-laws on a regular basis to ensure that there is enough housing for current and future residents. Changes to zoning by-laws will roll out across 2024. 

*https://blog.royallepage.ca/new-housing-legislation-to-look-out-for-in-2024/

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Estate Planning: Are You Covered?

“New Year, new you” may be a cliché but it is for a reason! The New Year always has us thinking about where we are now, and where we want to end up. When it comes to your personal goals, a review of your finances and estate should be at the top of your list. Proper estate planning can ensure that you have a stress-free year knowing you are covered!

Is your will up-to-date?
The purpose of a will is to outline your assets and determine how they will be distributed, as well as who will be in charge of managing affairs. Some key components to include in this document are:

  • Up-to-date list of your significant assets; note the location if outside your province or outside Canada.
  • Who will inherit your assets? And which?
  • Outline of where you want assets to pass outside your estate to avoid probate fees (e.g., an insurance policy, an RRSP)? Do this via beneficiary designation.
    •  If they are minors, do you have a trust or other provisions in place?
  • Is the list of beneficiaries in your will up to date
  • Have there been recent births, deaths or marriages in your family?
  • Have you included alternates in case your named beneficiaries predecease you?
  • Do you want to give to charities or other organizations?
  • If you have children, have you indicated a guardian and spoken to them?
    • Did you include an alternate in case the guardian you chose is unable to commit?
    • Have you reviewed your choice of guardian as your child grows older?
  • Your executor who will carry out your wishes after you die. You can name one executor or two or more co-executors. Be sure to name one or more alternates as well.

Have you assigned a power of attorney?
Another important (and often overlooked!) aspect of estate planning involves naming a power of attorney. This individual is someone you trust to make decisions for you should you become unable to do so due to injury or illness, whether temporary or otherwise. Power of attorney documents are created for you by a wills and estates lawyer (or notary in Quebec) as part of your estate plan.

Do you have mortgage protection insurance?
Through Manulife Mortgage Protection Plan (MPP), you have the opportunity to add a portable insurance policy to your mortgage that helps protect your loved ones and your home should something unexpected happen to you. Unlike bank insurance, MPP is a portable life and disability product that you can take with you, from lender to lender and property to property. This gives you the utmost future flexibility and is unlike bank insurance products which tie you down exclusively to them. To ensure you get the best rate at renewal, you must have invested in an insurance product like MPP that will give you the freedom to move!
Mortgage life insurance will protect your family's future by paying out your mortgage should the mortgage holder pass away.

Manulife will also make your mortgage payments while your claim is being adjudicated, so there is no added stress for a loved one at an already difficult time. Mortgage disability insurance will take care of your mortgage payments plus property taxes if you become disabled. Disabilities from sickness and accidents are relatively common and will affect 1 in 3 borrowers throughout their mortgage amortization. Manulife provides budget-friendly payment options, the ability to top-up your coverage and so much more.

These are all important aspects to consider to ensure your estate and family will be provided for should something happen. While never a fun topic, it is an important one and the better prepared you are, the better off your loved ones will be.

*Shannon Mayhew, MBI
Mortgage Broker
778-858-9848
www.westcoastbroker.ca


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Pantone of the Year

As we enter the New Year, it's always fun to reflect on the previous twelve months and take a look at what is trending as we move forward. 

If you are unfamiliar with the Pantone of the Year, it is more than just a colour to paint your walls. 

Since 2000, the Pantone Colour Institute has been indicating a colour of the year and, for many, this is seen as a representation of the current moment in time helping us to reflect on the culture and state of the world. Think of it like a snapshot in time!

For 2024, the Pantone color of the year is “Peach Fuzz”; which is notably a warm and cozy hue to feed and nourish the soul.

During this post-pandemic period of turmoil around the economy, mortgage industry, and housing market, many of us are currently in need of more nurturing and comfort. This colour signifies the importance of caring and community even more as we enter 2024.

As the calendar turns over, take inspiration from Pantone to make the New Year one of comfort, healing, and peace for yourself and those around you. With interest rates forecasted to drop towards the latter half of 2024, housing and job markets set to stabilize and inflation slowly reducing to normal, we have some stability to look forward to.


* Information provided by Gagan Dhanjle

Mortgage Manager for 
Lifestyle Mortgage Co. 
Phone: 6004-996-2312

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Modest interest rate cuts expected to spur activity next year, leading to a rise in property prices

National aggregate home price forecast to increase 5.5% year over year in Q4 of 2024

Following several years of unprecedented ups and downs, Canada’s housing market could return to more normal levels of activity and price trends next year. The Bank of Canada is expected to lower its overnight lending rate in the second half of 2024, which will lead to an increase in demand from sidelined buyers as they adjust to today’s lending realities. New household formation and newcomers to Canada will put additional upward pressure on prices. 

“Looking ahead, we see 2024 as an important tipping point for the national economy as the majority of Canadians acknowledge that the ultra-low interest rate era is dead and gone,” said Phil Soper, President and CEO, Royal LePage. “We believe that the ‘great adjustment’ to tolerable, mid-single-digit borrowing costs will have a firm grip on our collective consciousness after only modest rate cuts by the Bank of Canada.”  

According to the Royal LePage 2024 Market Survey Forecast, the aggregate1 price of a home in Canada is set to increase 5.5% year over year to $843,684 in the fourth quarter of 2024, with the median price of a single-family detached property and condominium projected to increase 6.0% and 5.0% to $879,164 and $616,140, respectively.2 

Royal LePage’s forecast is based on the prediction that the Bank of Canada has concluded its interest rate hike campaign and that the key lending rate will hold steady at five per cent through the first half of 2024. The central bank is expected to start making modest cuts in late summer or fall of next year. Meanwhile, several major financial institutions have already begun offering discounts on fixed-rate mortgages.

“Canada’s real estate market has been on a roller coaster ride for the last four years. A global pandemic briefly brought market activity to a grinding halt in early 2020, followed by a rapid, widespread spike in demand and price appreciation as Canadians sought safety and greater living space in their homes among a world of uncertainty. By the spring of 2022, home prices had reached unprecedented highs, but when interest rates started rising quickly and steeply to combat inflation, the extended market correction began,” said Soper. “Markets take time to adjust. We see a move toward typical home sale transaction levels in 2024, and as the year progresses, appreciating house prices.”

Nationally, home prices are forecast to see modest quarterly gains in the first two quarters of 2024, with more considerable increases expected in the second half of the year, following the anticipated start of interest rate cuts by the Bank of Canada. 

Read Royal LePage’s 2024 Market Survey Forecast for national and regional insights.

Highlights from the release:

  • Calgary aggregate home price projected to see greatest gains of all major markets at 8.0%
  • Aggregate price of a home in the greater regions of Toronto and Montreal are forecast to end next year 6.0% and 5.0% respectively above the final quarter of 2023
  • Meanwhile, Greater Vancouver is expected to see a more modest increase of 3.0%
  • In other major regions, aggregate home prices are expected to rise modestly (4.5% in Ottawa, 3.0% in Halifax, Winnipeg and Regina)
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6 Things To Know About Capital Gains

6 things to know about capital gains and
taxes for people across Canada

  

So, you made some cash selling your property or stocks at a higher price than you bought them for? High five! But before you start celebrating, there's this thing called capital gains that might show up on your tax return. Here's a friendly chat about what you need to know, in simple terms.
 

1. What's Up with Taxes on Capital Gains?

Capital gains are kinda like a 50-50 deal when it comes to taxes. Only half of what you earned from selling your stuff gets taxed. But how much tax you pay depends on your yearly income. So, if you sold a building for more than you bought it, only half of that profit gets added to your income and taxed accordingly. Higher income, more tax - that's the game.

2. Capital Gains vs. Losses

Sold something for less than you paid? That's a capital loss, my friend. But it's not all bad news. You can use these losses to reduce the taxes on your gains. If your losses are more than your gains, you can even use them to lower your taxes in the past or future years.

3. Keep Your Papers in Order

When it comes to declaring capital gains, paperwork is king. Keep track of when you bought and sold things, the costs, commissions, and any other expenses. Trust me, having these documents handy will make your life easier when tax time rolls around.

4. Gifts and Sales: What's the Deal?

Gave something away or sold it for less to a family member? The tax folks will act like you sold it for its full market value. So, you might still owe taxes on a bigger gain than you expected.

5. Splitting Gains with Your Better Half

Generally, you can't just split capital gains with your spouse to save on taxes. There are some rules around this. But if you both bought something together and paid equal shares, then you can split the gains equally too.

6. Smart Planning for Your Gain

Got a feeling you'll sell something for more than you bought it? Plan ahead! Maybe sell some stuff that's not doing so well, or put more into your retirement savings to lower your taxes for the year. Timing can also be key - if your income is lower in a particular year, reporting your gain then could mean less tax.

Remember, this chat is just a friendly overview. It's super important to chat with your accountant or tax professional for advice tailored to your situation. They're the pros who can guide you through the nitty-gritty of your finances. Stay smart and stay informed!

Disclaimer: This information is for general understanding and should not be used as a substitute for seeking professional guidance from an accountant or tax professional. Laws and tax regulations can be complex and change over time, so it's always a good idea to get personalized advice from the experts. 


*Courtesy of 
SHANNON MAYHEW, MBI 
MORTGAGE BROKER
T: 778-858-9848
www.westcoastbroker.ca 

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The 29th annual REALTORS Care® Blanket Drive
✨ Join us in making a difference! The 29th annual REALTORS Care® Blanket Drive kicks off on November 14th, and we need your help to make it a success. ❄️

As you start cleaning out your closets, please consider setting aside warm clothing items like blankets, coats, toques, gloves, scarves, and more. Your donations will go a long way in keeping those in need warm this winter.

Stay tuned for more information on drop-off locations and collection details. Together, we can make a positive impact in our community. Let's spread warmth and kindness this season!
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