February 2017 Market Update

Mortgage rates have eased  

Mortgage rates have eased slightly since the start of the year.  The Bank of Canada kept rates on hold at their last meeting citing uncertain times and it’s expected they will do the same when they meet again on March 1st.   Many borrowers are unaware that mortgage lending has tightened and it’s more difficult today than ever to access cheap rates, however; great solutions are still available. 

To mention a few:

-        35 year amortizations with fixed rates under 3%
-        Equity based lending with rates under 6%
-        Flexible underwriting for self-employed borrowers with rates under 4%

I continue to recommend variable rate mortgages.  Not only does the variable option offer the lowest rate it also provides great flexibility and now can be offered as low as 2.10%.

 Need a rate hold of up to 120 days, click here.

Condos are hot

Customers looking to purchase a condo in Metro Vancouver are facing challenging times.  Supply remains constrained and many properties that appear to be available are in fact sold or have an accepted offer.  Prices continue to rise and buyers are often facing competing offers with no conditions.  Preparation is the key to be successful.  Ensure your financing, inspection and other requirements are satisfied prior to making an offer.   For more information on how we can help you with your purchase…click here.

BC Home Partnership Program is now up and running.   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.

For the latest real estate report, please click here.

Homes Sales Set New Trends

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.

December Update - Mortgage rates are rising

Over the last few weeks mortgage lenders have increased fixed term rates by up to 35 basis points and the indications are that further increases will be coming soon.  The increase in mortgage rates along with the recent tightening of the mortgage lending rules could result in worsening home affordability.  Not only is it now harder to obtain a mortgage approval it will soon cost you more every month.  A low rate of 2.49% can still be obtained for a five year fixed term and variables rates can still be offered as low of 2.20%.  Don’t expect these rates to last.  I encourage mortgage borrowers to review their financial position and take action to refinance before it becomes even more difficult.   

Need a rate of up to 120 days,  click here. 

Home prices moderate

Residential home sales for the month of November have decreased nearly 40% versus the same period last year and are almost 10% below the ten year average.   It’s not all bad news as the downward pressure is primarily on detached properties.  Sales for apartments actually increased in November over the previous month.   Demand for apartment and townhomes are higher than detached properties and as a result detached home prices have weakened while attached home prices have remained stable.  The softening of the detached prices may begin to stabilize as the inventory levels begin to decrease.  A strong marketing strategy and execution is now more important than ever when it comes to selling your home.   

For the full real estate report, please click here.

October Update - New Mortgage Lending Rules

Mortgage lending will never be the same    

Last week our Finance Minister introduced new mortgage lending rules for mortgages offered from insured lenders.   To name only a few:  First National, MCap and Merix financial are the type of lenders affected.  One of the new rules particularly impacts the qualifying rate used to obtain an approval.   Borrowers will now need to qualify using a published rate which is much higher than the contract rate.  Another change reduces the maximum amortization from thirty to twenty-five years.  The bottom line:  as of Oct 17th it will be much more difficult to obtain a mortgage likely resulting in higher mortgage rates, less product options and competition.  First time home buyers will be further constrained and some real estate markets will be damaged.   I personally fail to see how these new regulations are in the public’s best interest but I encourage all mortgage borrowers to review their financial position and act to refinance/renew sooner than later.  Rates remain very low with the best 5 year fixed at 2.29% and best variable at 2.20%.  

Have a question click here.

Easing the upward pressure on home prices

Real Estate has also been a target with many new Provincial Government regulations introduced over the past few months along with the Federal Government as of recently and unless it’s just coincidence, it seems to be having an impact.  The number of sales has declined over the past few months down twenty to forty percent depending on the type of property.  At the same time inventory levels have increased in many regions particularly with detached homes.  These current conditions are making it easier to help people buy.   I’m not confident that these conditions will last long but the new mortgage rules announced last week may also have a negative impact on market conditions; but it is too soon to tell.  

For the full real estate report, please contact us.

Real Estate Market Update Vancouver

Mortgage rates have not made recent headline news but they have been creeping downwards unnoticed. The five year fixed rate can now be offered as low as 2.30% and variable rates are even lower. Most nations in the world are concerned about sustaining economic growth and as countries introduce new stimulus policies to help grow their economy, rates should continue to edge lower. The US could be the exception, but many economists don’t anticipate any major changes there either. 

Real Estate especially here in Vancouver and Toronto has made plenty of headline news.  Many of us are now aware that BC has introduced two new taxes to help with what they considered a Housing crisis.On top of this mortgage lending practices are being further scrutinized which will likely result in tougher lending qualifications.  It’s anyone’s guess of what the long term effect will be on real estate prices but what I do know is that we can help make your real estate transaction easier and cheaper. 

The high real estate values and low rates have made it much easier for clients to reduce their borrowing costs.  Saving money can be as easy as getting a second opinion on your mortgage renewal. 

Click here to check out our new listing - 303 1230 HAMILTON STREET