As I deal routinely with non-resident investors wanting to sell Canadian real estate assets, I would like to shed some light on this otherwise somewhat arcane subject. DISCLAIMER: please note that the following essay is presented solely for general information purposes, it is not intended to be legal advice or purported to be as such, it may or may not apply to your particular situation and that I strongly recommend - in fact I urge you - to discuss this topic in-depht further with your lawyer, notary, conveyancer or accountant - and not necessarily in this sequence - if a need there be.

If you are a non-resident involved in the selling of Canadian real estate assets that you own, you should be aware of the applicable provisions of the Income Tax Act to avoid problems when the time comes for the sale to complete. In brief, if taxes are owing to the Canada Customs and Revenue Agency (Revenue Canada) by a property owner, the property can be charged to secure payment of outstanding taxes. This applies to both residents and non-residents. What, however, specifically applies in the case of non-residents selling Canadian real estate is that the property may be charged even after being transferred to the new owner.

In order to be protected and pursuant to the requirement of the Income Tax Act, the Buyer must make a ‘reasonable inquiry’ as to the Seller’s residency status. Thus the need for indicating ‘Resident of Canada/Non- Resident of Canada’ under the Sellers information in the top left section of the Contract of Purchase and Sale. The Buyer’s notary or lawyer will make a similar inquiry of the Seller when the convyancing documents are signed. If the Seller is a non-resident of Canada, he must apply for and obtain a Clearance Certificate from Revenue Canada and provide the Buyer with this Certificate. It normally takes four to six weeks for Revenue Canada to issue a Clearance Certificate. If a Clearance Certificate is not provided to the Buyer or his conveyancing representative, then the Buyer must hold back one-third of the sale price until the Certificate is provided. If the Certificate, furthermore, is not forthcoming the holdback money is then remitted to Revenue Canada and the Buyer - and the newly acquired property - are protected from any further liability or charge.

A problem, moreover, may arise at the time of completion if, for instance, the existing mortgage exceeds two-thirds of the sale price and there are therefore no sufficient proceeds to allow for the holdback and clear title, not to mention payment of closing costs. So therefore, if you are (or will be at the time of completion) a non-resident Seller be sure to raise this issue before the property is sold and there is still time to obtain the required Clearance Certificate. Likewise, if you are the Buyer and you learn that the Seller is a non-resident, be sure there is ample time before completion and possession.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

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Did you ever imagine that your home can prove to be much more than a mere shelter? Something more than just a roof over your head? Well, once you enter the loan world, you sure cannot overlook the value of the asset you own. If you are a homeowner, you have a horizon of opportunities where taking a homeowner loan is considered. A homeowner loan is backed by your home, i.e. it is a secured loan and is so called because you put up your home as collateral or security for the lender, against the amount borrowed. Homeowner loans are straightforward and are available to every homeowner irrespective of your credit history. The money availed through homeowner loans can fund innumerable financial needs and can provide opportunities galore if used well.

Homeowner loans can be modified as per your financial standing. The main attraction of these loans is the low interest rate offered on it. Since your home is a security for the lender, you, as the borrower benefit too by having lower interest rates and flexible repayment options to deal with. The latest report on homeowner loans reveals an interest rate as low as 5.1%. However, in this rather smooth sailing journey, there is one road block: in case you default in your monthly payments, your home or property is liable to confiscation by your creditor. Your creditor holds the claim on your home until complete repayment.

Another reason for a taking a homeowner loan would be if you had poor credit history. Lenders look more favourably on people who are homeowners as this exhibits a commitment to repay a large amount of money over a longer period. Homeowner loans could take longer to process because they necessitate valuation of collateral. Homeowner loans like any other secured loan permit loan amounts of £5,000 to £75,000 with repayment terms of 5 to25 years.

There is a general tendency for the equity in your home to rise owing to home improvements and other developments made by you. Sometimes you do not play a part in this at all because real estate soars due to any attraction in the vicinity like a mall or development of infrastructure. All this aesthetically adds to the value of your home. Homeowner loans take advantage of the equity in your home and hence are commonly known as Home Equity Loans as well.

Lenders are very cautious about the amount they lend. Their priority is value of collateral and prompt recovery of the loan. Creditors prefer granting amounts less than or equal to the market value of your collateral. A borrower with exceptional credit history can expect amounts up to 125% of the collateral, while someone with a turbulent standing may get about 60% of it. There is more scope to borrow larger amounts as long as you satisfy the lender of your ability to repay the loan.

A few benefits of Homeowner Loans:

•Home owner loans are of immense help to people who prefer not to sell their home, but need resources to meet over some contingency.

•People with poor credit histories: C.C.J’s, defaults, arrears, etc. can get good deals as long as they have collateral i.e. a home. Thus, good credit scores are not a must.

•Home Owner Loans offer low interest rates and easy repayment options.

•The loaned amount can be used for any purpose as per the borrower’s requirement.

•Homeowner loans are ideal for those who find it difficult to get loans from their local bank and for those who do not wish to sell their home when in need of resources to meet over some contingency.

Some lenders apply a charge to home secured loans if they are paid off before the due date. This is called a redemption penalty and can be up to two months interest - a significant additional cost. If you consider repaying your loan earlier than agreed, then it may be wise to take home secured loans that do not have a redemption penalty, even if you pay a slightly higher APR.

Comparing interest rates offered on homeowner loans from different lenders gives you a good idea of how competitive they are and familiarizes you with interest rates. It is imperative to ascertain that you can meet the repayments before signing the credit agreement. However, attractive it gets, “Look before you leap!”

Marsha Claire is offering loan advice for quite some time. To find Loans UK, secured loans, unsecured loans, debt consolidation loans, Homeowner loans visit http://www.loansfiesta.co.uk

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The secret to selling a home lies not in how sound the structural foundations of a home are (although it does matter, but that is usually brought up later on), but on how pimped up the exterior is.

It may sound really superficial but it is, to some extent, true. Home buyers do not go to real estate agents and ask which home has the most solid foundation or which one has the least leaky set of pipes. When they approach agents, they first find out if there is a house that suits their requirements; and then they will go out to see if the house is the one they want.

Since the acid test relies on visual appeal, you have to pimp up your home and make it look like the daddy mack of all houses. It’s really not that difficult to make the exterior of your home pleasing to the eyes. You just have to watch out for possible eye-sores and attend to these immediately.

If you want to attract buyers the same way James Bond attracts the ladies, you have to check your home from head to toe (roof to sidewalk)

1. Check the hair (your home’s roof). If your roof has shingles, make sure that the entire roofline is properly covered with no traces of lose or broken tiles.

2. While you’re up there, check the gutters. These should be intact and in good working order (not drooping nor leaking). It would be a good time to clean these and remove leaves or dried branches.

3. Next, focus on the body. Are all the walls properly painted? Are there any loose wall panels? Check the windows: are they all scrubbed? Are the shutters working? How about the doors: has the hardware been shined? Are the colours coordinated? Give the body of the house as much attention as you would do your own.

4. Now you can focus on the grounds. The grounds should be as clean as the edifice itself. It should be free from unnecessary debris or clutter such as doggie dishes, rakes or way ward leaves. The lawn should be mowed and the trees and hedges trimmed. If you have a fence or a gate, these should be in good condition as well.

5. Finally, accessorize. No, this doesn’t mean putting fine china on your outdoor set. Just make sure that all exterior lights are working, and that you have adequate decoration outdoors. Having plants line your driveway, or ensuring that the mailbox by the sidewalk is clean and functioning properly may seem insignificant, but these matter.

Getting the buyers to step out of their car is the first and probably most important step. Once you’ve gotten their attention and have brought them inside, you can impress them further with the stuff that really matters.

View more Home Selling Tips at LegalHomeForms.com.

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The best scenario to consider a mortgage refinancing loan is when you owe quite a large amount and you still have many years of paying off your home loan. It’s a good idea to consult a broker or a mortgage officer regarding the new interest rate’s influence on your monthly payments. You may also want to know the length of time for you to recoup the new loan’s closing cost. However, to give you an idea of when it makes sense to do a mortgage refinance loan, here are some of the instances.

Getting a refinance mortgage loan can be a smart move for many homeowners. This is especially true if the interest rates are low. In the world of finance, interest rates directly affect the way mortgage rates behave. So if the interest rates are low, then mortgage rates will also be low. Low mortgage rates in turn lead to bigger savings from your monthly payments.

4 Tips On How To Refinance A Mortgage Loan

1. Make sure that the drop in interest rates is enough to make a refinance mortgage loan worthwhile.

2. To determine if refinancing your mortgage loan will save you money, compare the total costs to refinance, as well as interest rates.

3. Generally, the lower the interest rate, the more points the lending institution will charge.

4. A lower interest rate gives you less interest to deduct on your income tax, which may increase your tax payments and decrease your total savings from refinancing.

What Will It Cost To Refinance A Mortgage Loan?

A refinance mortgage loan generally means paying off your original mortgage by signing a new loan. Your refinance mortgage loan acts like your typical mortgage loan. That means that you pay most of the same costs you paid to get your original mortgage. Having said that, the total expense of a refinance mortgage loan depends on all those factors - interest rate, number of points, and other costs. Lenders will charge several points in order to offer you the lowest rates.

4 Reasons You May Consider A Mortgage Refinancing Loan

1. Dropping of rates - Usually, when rates drop by 1% to 2% mortgage refinancing can be one good option.

2. Consolidation of debts - Through mortgage refinancing, consolidating your debts into one payment is viable if you have equity in your home.

3. Staying in your home for an extended period of time -The lower interest rate for refinancing can be best enjoyed if you are to stay in your home at least 5 years.

4. Reducing the mortgage term - Larger monthly payments will enable you to pay your loan quicker. Since shorter term programs have lower interest rates, surely, you’ll be able to save more with this kind of refinancing.

Here are 4 terms to look into to help get the best refinance mortgage loan.

1. Loan size

2. Paid points

3. When is the closure of the loan?

4. Locked or floating rate

Shopping around is one of the best things you can do with any kind of refinance mortgage loan. Know the credibility of your choice lenders. Allow ample time for you to get the hang of all the refinance mortgage loan terms if you’re a newbie on this industry. Doing your homework will save you not just some money but also from future headaches.

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Regular mortgage monthly payment already covers payment on interest. Any extra or additional payment refers to prepayment. Mortgagor or borrower often asks why I have to pay penalty on prepayment or refinance. Since the mortgage companies loses payment on interest, the mortgagor or borrower needs to pay penalty. The penalty on mortgage depends on the mortgage companies.

Mortgage companies give no penalty on every prepayment for fully open mortgages, while mortgage companies give penalty on every prepayment for fully closed mortgages. As for the partially open mortgages, mortgage companies give no penalty on prepayment with limitations. The mortgagors pay penalty when they exceed limitations.

As a mortgagor, you got three common prepayment privileges. First, annual lump payment allows prepay up to 15% of the original amount of mortgage loans. Second, annual increase on the regular payment allows increase of regular payment up to 15% for the remainder of the term. Finally, double up allows to double regular payment up to the remainder of the term.

Since the mortgagor pays more on top of the regular mortgage payment, the amount of time to repay reduces significantly. For example, the mortgagor saves 2 years and months on $150,000.00 principal, 6.5% interest, 25 year mortgage, and $500.00 additional payment (one time after a year).

Dennis Estrada is a webmaster of mortgage calculators which calculate the mortgage payments, and compare different interest rates.

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Buying a second mortgage for homes has emerged as a feasible option for people who are unable to make the requisite down payment for the property. First of all it is important to understand how a second mortgage works. Suppose you wish to buy property and don’t have the required 20% of the sale price as the amount to make the down payment. One option for you is to opt for private mortgage insurance for the required amount. In this, you will again need to make a small down payment and then make monthly installments for the rest of the value.

Another option is to take loan in two installments. Let us, for example, assume that you are in a position to make 10% down payment. That means you will require 90% of finance. In this case, you will get 80% loan as the first mortgage and the remaining 10% will be financed as the second mortgage.

This is also called piggyback financing. But you must keep in the mind that interest rates for second mortgage is higher than that of the first mortgage. This is because the risk factors are greater with the second mortgage loan as compared to the first mortgage loan. If there is a financial crisis, the primary loan or the first mortgage loan will be paid first. The second mortgage or the subordinate loan will be paid later.

To sum it up, second mortgage loans are loans with a fixed rate of interest. As in the case of the first mortgage loan, the second mortgage loan will depend upon your credit history and also the current rate of interest prevalent in the market. Generally the rate of interest is higher but the fees involved are lower.

Second mortgage loans provide an excellent opportunity to raise money for homebuyers facing financial difficulties in raising the requisite money required for the down payment. Therefore, buying a second mortgage is fast gaining popularity for raising the cash needed for buying property.

Mortgage Buyers provides detailed information about mortgage buyers, first time mortgage buyer advice, first time mortgage buyers and more. Mortgage Buyers is affiliated with Home Equity Loans.

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It’s obvious - we all want to have a low mortgage rate. After all, a low mortgage rate means spending less on monthly payments throughout the life of the mortgage. A lot mortgage rate can save you thousands of dollars. It also means you’re more likely to have funds available to spend on opportunities that could prove profitable.

In recent times, low mortgage rates have begun to rise, but even so, rates today are still low enough to make it worth considering refinancing your home, if you’re stuck in a high rate loan. The internet is a wonderful place to do your research on finding a low mortgage rate. Included here are some websites where you can start looking.

Interest.com

This website is a great place to start you research. You can compare the rates from a variety of lending companies in your state, so that you can improve your chances of getting a low mortgage rate. For example, you may want to apply for a 30-year fixed rate refinance mortgage in Arizona. You need to borrow $100,000 with no discount points, and you want a standard type of loan. Once you click on search, a list of lending companies in Arizona will appear, along with an indication of their mortgage rates. Then all you have to do is choose the one offering the lowest rate, check that the other aspects of the loan are okay, and off you go.

MortgageRatesUSA.com

At MortgageRatesUSA.com, you can request a loan quote online. They offer a lot of choices and options if you’re looking for low mortgage rates. They are very strict on privacy, and so the information you provide is only shared with potential lenders, not with any other third party.

ELoan.com

If you want to go direct to a lender, then try E-Loan. They offer low mortgage rates with a range of loan types. Also, they don’t charge any lender fees or add on other hidden costs. There are also various loan calculators you can use at the site.

If you’re locked into a high interest rate loan, the sooner you take a look at refinancing with a low mortgage rate, the better. There’s no guarantee that rates will stay this low, so check into your options before you find rates rising again. Refinancing to a low rate mortgage can help lower your monthly payments, save on interest and reduce your stress levels enormously.

Discover more about choosing the best home loan at Home Loan Zone Central

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