Diane Cardoso

CMHC decides to offer mortgage loan insurance for extended amoritizations.

In February 2006, CMHC introduced extended amoritizations for homeowner mortgage loan insurance to the Canadian marketplace. Prior to this pilot initiative, extended amoritization flexibility beyond 25 years was only available to homeowners under CMHC's Affordable Housing Partnerships and through its Energy-Efficient Homes product.

The pilot demostrated that there is a need and a demand for mortgage indurance on loans with longer amortization periods. As such, CMHC has built on the success of the pilot and will facilitate access to homeownership for even more Canadians!

How

The GST New Housing Rebate reduces, to some extent, the GST burden on the purchaser of a new residential property, where the house is priced less than $450,000. The maximum New Housing Rebate is $7,560.

For new houses priced $350,000 or less and possession and ownership passes to the purchaser on or after July 1 2006, the rebate is the least of:

a) 36% of GST paid or,

b) $7,560. ($350,000 x 6% x 36% = $7,560)

The New Housing Rebate is still phased out for new houses priced $350,000 to $450,000 and is Nil for new houses priced more than $450,000.

The 6% GST rate change has similarly reduced the New Rental Housing Rebate,

"When I'm 64!" No you can defer before!!! Property owners who turn 60 years old in 2006 or are already older may qulaify for a deferment of all or part of the unpaid balance of their residential property taxes!

The Property Tax Deferment Program is a low interest loan program that lets eligible home owners defer property taxes. Deferred property taxes are eventually deducted from the home's value when it is sold.

To qualify, home owners must be:

60 years of age or older: or a surviving spouse of an eligible owner: and/or a person with a disability; and a Canadian citizen or permanent resident under the Immigration Act (Canada) who has