June 2017 - Real Estate Update

Mortgage rates ease - June 2017

Mortgage rates have moved slightly lower since my last update. Bank of Canada kept their official interest rate on hold at their last meeting on May 24 citing caution about making any changes to the rate. Economic conditions remain stable but there is elevated concerns about the housing markets especially those of Toronto and Vancouver. Any major deterioration in these markets could be a potential drain of the Nation’s economy. 

At the risk of sounding like a broken record; mortgage clients should be cautious when making decisions about rates. Variable rate mortgages remain the most attractive; however an unforeseen increase to interest rates could increase borrowers’ monthly payments significantly. 

Mortgage lending qualifications are currently very challenging but financing alternatives are available:

-        Income reasonability lending: First mortgage as low as 3.69%
-        Stated Income lending:  First mortgages as low as 5.35%.
-        Equity based lending:  Second mortgages as low as 7.95%
-        Construction and commercial financing of up to 75% LTV

 

Best Mortgage Rates:

-        Best 5 year fixed at 2.44%
-        Best Variable rate at 2.05%
-        Best Line of Credit rate at 3.20%

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

Featured property:   

Condo located in the River District Community. Fully renovated two bedroom condo for sale for $558,800.  Hyperlink:  http://tours.bcfloorplans.com/781449

March 2017 - Real Estate Update

No major changes to mortgage rates – for now. 

Mortgage rates have not changed much since my last update. The Bank of Canada kept their official interest rate on hold at their last meeting earlier this month but it was the opposite a few weeks ago in the US where the Feds increased rates. Rising inflation announced recently in the UK could set the stage for them to do the same. It’s not predicted, but Canada could potentially follow the same pattern especially if we continue to experience positive growth in jobs, retail sales and GDP.  An increase in mortgage rates would have a significant impact on housing affordability in Canada especially in the Vancouver and Toronto areas.

Mortgage lending qualifications remain very tight and getting access to cheap money continues to get more challenging. Lenders remain concerned with our real estate prices and many bank executives have expressed concern about a possible real estate bubble. Rising Canadian interest rates would intensify their concerns. 

Mortgage clients should be cautious when making decisions about rates and a fixed rate should be on their radar. Lenders have introduced many rate specials since beginning the Spring market especially for insured mortgage:

• 5 year fixed at 2.59%
• 4.5 year variable at 2.05%

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

Real estate sales have become closer to the averages but have begun to accelerate.

The BC Government continues to tweak real estate policies and recently announced positive changes to the foreign buyer’s tax. Ontario is hinting at changing the Capital Gains tax on real estate sales to deter speculators from flipping. Fingers crossed we don’t see any similar changes in BC. Vancouver and Toronto Real estate continues to be a hot topic and all eyes seem to be on the market conditions as we roll into the spring season. Local condo and townhome sales remain very robust and prices are rising fast. Detached homes are less so but prices are stable.  Stay tuned for further updates as we get further into the year. 

I have more new listings being launched soon. The latest:  Click Here to View Listings

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.