Mortgage rates are higher
Mortgage rates have ended last year a third higher than the start of the year. But it’s not as bad as it sounds as many fixed term rates remain under 3%. Tomorrow the Bank of Canada will announce their overnight rate for the first time this year. Given Canada’s new mortgage rules and our faltering GDP growth I suspect we will not see any changes. The next time the Bank of Canada announces rates will be on March 1st and at that time the US will have a new Government underway and this may cause our Government to take more action on interest rates. At the moment I continue to recommend variable rate mortgages. Not only does a variable offer the lowest rate; as low as 2.20% but it also provides greater flexibility than a 5 year fixed term. Need a rate hold of up to 120 days, click here.
Home sales set new trend
The BC Government introduced multiple policies last year to moderate the real estate market and at least for the short term it seems to be working. The number of residential home sales for December 2016 decreased nearly 40% versus the same period in 2015. That being said, property owners still experienced a near 20% price growth on average throughout 2016.
BC Home Partnership Program for down payment loans begins this week. The program is designed to help First Time home buyers purchase a home for up to $750,000 by providing up to $37,500 in an interest free loan. For further details on eligibility and processing, click here.
The new program may be helpful in providing easy money, but it may also push up prices of certain properties; especially modest strata/apartment type homes. First time home buyers should act sooner than later to make their first purchase.
For the latest real estate report, please click here.