Tony's Latest Update February 2017

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.

Tony's Latest Updates January 17, 2017

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.

Tony's Latest Updates December 6th, 2016

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.

Tony's Latest Updates October 11th, 2016

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.

Tony's Latest Updates - June 13th, 2016

Lately it seems that all the news is about housing and affordability and there’s a good reason. The benchmark price for detached properties increased 37 per cent from May 2015 to over $1.5 million and the number of sale transactions hit a new record for the month. Our Federal finance minister, our Premier and Vancouver’s Mayor have recently all expressed deep concern and have promised more action to cool our Real Estate market.   This could result in a disaster for real estate especially if macro-economic factors change at the same time our Governments introduce tightening policies.  I don’t believe this will happen anytime soon; but it’s prudent to be cautious.

Home owners are encouraged to ensure their financial house is in order by reviewing your mortgage and other debt obligations.  The rapid rise in home values is making it much easier for borrowers to consolidate and improve their cash flow.  Home owners considering selling should do so while we remain in a ‘sellers’ market.  Anyone considering a home purchase should do so within their affordability and not overleverage themselves.

Mortgage rates remain at near-record-lows and there are signs that fixed and variable rates may drop lower over the next few months.  Take action now while conditions are great.  Here are a few options that can help with affordability:

• Variable rate mortgage offering rates as low as 2.25%.
• Longer term amortizations of up to 35 years.
• Line of Credit mortgages offering interest only payments.
• Mortgages that combine the best of a Variable rate and a Line of Credit.

This is not the first time the Vancouver area has experienced a sizzling market; many of us have seen it before and although many property owners have reaped the rewards, others have not been so lucky.  Help is a click away….

Tony's Latest Updates - May 5th, 2016

Mortgage rates continue to remain stable with only modest downward pressure.

The Canadian economy appears to be in a neutral position with little inflationary pressure and as a result

interest rates are expected to remain low. This is good news for helping with housing affordability. Monthly payments for $100,000 borrowed can be as low as $275. Our high home values are helping many of us reduce our borrowing costs or to expand our real holdings. Many attractive refinance solutions are available but self-employed borrowers continue to face difficulty in qualifying for the low rates. Usually this is caused by not declaring taxable income and no matter how financially prudent it is to minimize taxes; the consequence can be higher borrowing rates.

It’s hard to imagine real estate prices rising any higher but the MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver increased 25.3% compared to April last year. Inventory levels continue to support a ‘sellers’ market and many buyers are finding it very difficult to purchase often losing to multiple offers. Did you know: One of the best ways to help qualify for financing of a detached home is with a rental suite(s). Some lenders allow up to 70% offset which has a huge impact in helping to qualify.

All of our agents are dually licensed realtors and mortgage brokers. We make all your real estate needs easier and more convenient.

Interest rates that matter:

• Best 5 year fixed – 2.39%
• Best Variable – 2.25%
• Line of Credit – 3.30%
• Prime – 2.70%

Tony's Latest Updates - April 5th, 2016

Metro Vancouver home sales eclipsed 5,000 in March for the first time on record.

Average benchmark prices for our local real estate climbed 23% compared to March 2015.  Prices on average continue to climb and inventory levels remain tight.  The trend for detached properties was opposed by a few communities last month.  Langley, New Westminster, Tsawwassen,  East Vancouver and Richmond had the average prices decline and/or a higher year over year inventory level.   One month does not make a trend but it’s something that we are keeping an eye on.

Mortgage rates have remained stable and five year fixed rates have pushed to the lowest levels we’ve seen all year at 2.39%.  The Bank of Canada will announce rates again on April 13th and there is no expectation for a change to the rate.  Variable rate mortgages remain the best choice, however; given a five year fixed can now in many cases be offered at a rate lower than the variable rate; it can be a great alternative to many borrowers.

Did you know: To purchase an average condo downtown Vancouver; borrowers need: $39,800 for the minimal down payment with a $2,788 per month mortgage payment.  The closing costs can range up $12,000. This can be challenging to many first time buyers.  We can help you reduce your costs to purchase and save you money.  To find out more please email me; tony@tonyiannetti.ca

Interest rates that matter:

Best 5 year fixed – 2.39%

Best Variable – 2.25%

Line of Credit – 3.30%

Prime – 2.70%

Tony’s Latest Updates – March 3, 2016

The local real estate market conditions are accelerating.  Last month was the highest selling February on record for the Metro Vancouver housing market. Clients purchasing a property are faced with unconditional offers hoping to win against multiple bids. It’s never been more difficult to purchase a home.  Inventory levels continue to trend lower, with the exception of a few areas along with elevated demand.  The total number of properties currently listed for sale in Metro Vancouver is almost 40 per cent lower compared to February 2015. Unless there is some unforeseen crisis; there little reason to expect this trend to change.

Click here if you would a copy of the Real Estate Stats.

Even though lending conditions remain tight it’s a fantastic time to refinance or renew your mortgage.  Increasing home values are making it easier for everyone to reach into their home equity.  Clients should review their financial position and consider things such as paying out balances on their credit cards and make debt reduction a priority.

Tony’s Latest Updates – February 2, 2016

January 2016 real estate results are out and as you probably could expect sales and prices are up.  Last month’s sales were up 32% over January 2015.  The benchmark price for a detached property in Metro Vancouver now sits at $1,294,000.   Did you know that average price of a detached home in Tsawwassen increased 72% within the past 13 months.

Click here if you would a copy of the Real Estate Stats.

Over the past few months fixed term mortgage rates had inched higher reaching near 3%.  The increasing trend seemed short lived given that fixed rates are once again headed down.  Best 5 year fixed is now being offered as low as 2.54%.

With real estate values growing and rates falling, it is a fantastic time to refinance your mortgage and consider using funds to purchase an investment property and earn positive cash flow.   We now offer real estate services.  We have a competitive advantage when helping customers buy a home and within the past year, we have helped many of our clients purchase a property at below market prices.

Variable: 2.25%

5 year fixed:  2.54%

3 year fixed: 2.29%

Line of Credit: 3.2%

35 year amortizations are available which helps keep payments affordable.