Welcome to the blog section. In this blog I’ll be posting about what is happening around my neighbourhood (Yaletown & False Creek North), Vancouver luxury real estate, real estate and related issues. If you have any suggestions, please let me know, have fun.
Welcome to the Sutton Member Program booth at the Sutton National Conference in Las Vegas at The Mirage! I just wanted to invite you here and give you a glimpse of what we're doing with Finder Financial Services. We'll put clips of the different booths that are going on. There's lots of fun to be had and it's really interesting. Today we have some mortgage news for you guys. The benchmark rate in Canada, the Bank of Canada benchmark rate, should be dropping down to 5.19%. That's a drop from 5.39% down to 5.19% which is quite a big difference. For those of you qualifying for mortgages and you have a smaller down payment, you could actually qualify for a larger mortgage right now. If you would like more information, give us a call at 1-866-924-5244.
Today I'm here to chat about a question I received from a client recently: how do home inspection and appraisal relate to a mortgage? Are they required, can you skip one if you have the other...basically, what's involved there?
Home inspection: Home inspection is pretty self explanatory. This is when you hire a licensed inspector to assess the property. They're going to look at the condition of its parts, of what they can see, the mechanics of it: so the water heater (how good is it? Is it going to last?), the plumbing, maybe the roof (how long is it going to last and how old is it?), and make assessments based on that suggestion. If they know the roof is 20 years old, they may suggest that you will need to replace it in the next 2 to 5 years. All of these changes would affect the value of the property in your eyes. Read more at: http://www.suttonmember.com/blog
Today we're going to get a quick overview into "How can I figure out if I qualify for a mortgage?" A lot of you out there might not be sure what it is that we, mortgage coordinators, are looking for when we ask all these questions on your mortgage application; how much money you make, all of your past credit, credit cards, and all that stuff. These questions seem very invasive, but I'll let you know what it is that lenders and banks are looking for when they're asking you all these questions.
Today I'm going to talk a little bit about mortgage planning. In particular how identifying your long and short term goals can save you money on your mortgage in the long run.
Today we’re going to quickly go over variable rate mortgages and the convertibility or “lock-in” feature that you get with most variable rate mortgages. I personally am a huge fan of variable rates and I would take a variable mortgage myself, however I find that a lot of people who are considering a variable are actually considering it for the wrong reasons and the convertibility feature is the main one.
In a variable mortgage, as you know, the rate will go up and down with the prime rate changes meaning every month you could be paying more or less. This uncertainty means that in the future you might be paying more than you started out with and if you don’t have more income or you have been spending all of your savings you might get yourself in a bit of trouble. Here’s where the convertibility feature comes into, supposedly, save the day, you can lock your mortgage into a fixed rate at any time with no penalty. This seems to be perfect, but there are two issues with this is:
You’re wasting all of your savings. – if you’re going to take a variable rate it is a really long term strategy you have to make sure you have enough money or income coming in to pay for the mortgage as your payments increase because over the long term, based on many studies, in 90% of the cases you will come out ahead versus if you had taken a fixed rate.
The fixed rate you are going to receive when you decide to convert is most likely going to be higher or worse than had you just taken a fixed rate right from the beginning. There are several reasons for this; mortgage rates right now are almost at an all time low so there’s no reason not to take a fixed rate if you don’t like the risk. Secondly you’ll lose any kind of incentive, you are already committed with that particular lender and they don’t really have any incentive to give you any extra discounts if you decide to now take a fix rate from them because you still probably have 2-3 years left on your contract. Again more savings are going down the drain.
So if you’re thinking about it and you’re not sure if you’re looking at variable rates the right way talk with your mortgage broker or give us a call today!
Today we are going to discuss the trade-off between rising mortgage rates and falling home prices. We know a lot of you want to buy a home, and have dreams of home ownership, maybe a year down the line or maybe more than that. You are hoping home prices will fall so you can afford to buy a bigger place, so you get more value for your money.
Today we're here to talk about home equity lines of credit and the new CMHC changes announced earlier this week.
A home equity credit is a credit line, think of something similar to your credit card, but secured to your property. What this means is that you can borrow a very large sum of money because your property itself is worth hundreds and thousands of dollars. You could borrow this money at a very cheap rate similar to mortgage rates. Compared to your credit card, which might be 20% or even higher, this seems like a fantastic deal. Read more: http://www.suttonmember.com/blog
Mortgage brokers are trained licensed professionals with a wealth of knowledge and experience to find the mortgage that best suit your needs, at the best rate available, from a large selection of lenders that include most major banks, trust companies, credit unions, as well as other lending sources. A mortgage broker works on your behalf, with the lender.
They know how to prepare and present an application from detailed information that you provide to ensure that you have the best opportunity of getting the mortgage that you are looking for.
More experienced mortgage brokers have very strong relationship with key lenders to assist you with receiving the funding by approaching the lenders that best suit your personal circumstances. Yes, lenders in many instances only take on certain types of clients and this is where having a mortgage broker and their lender relationships working for you is a huge asset.
Mortgage broker services are provided with no cost in almost all cases, as they are compensated by the lender when the mortgage funds.
In a nutshell, “a Mortgage Broker is you personal mortgage professional, hunting down the best deal with little or no cost to you!”
The enclosed information while deemed to be correct is not guaranteed.
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As mentioned in previous news update, the Bank of Canada raises the prime rate by another 0.25% today to 3.00%. I believe that the rate will stay until next year before a change is considered. Important message: It’s time to lock-in your rates and do a pre-approval if you are thinking to buy in the next 3-6 months. As well, never hurt to message me and ask about the ‘easy transfer’ process if you had a prime plus, or prime with very minimal discount on your existing mortgage.
MORTGAGE RATE NEWS Bank of Canada raised the prime lending rate to 3.0%, acknowledged the economic recovery in Canada would be “slightly more gradual” than envisaged it its most-recent economic outlook, due to sluggish private-sector demand in the United States. However, it said domestic demand was expected to be “solid” and business investment to advance “strongly” powered by “accommodative” credit conditions that have eased further in recent weeks due to sharp declines in bond yields.
The variable mortgage discount is better than ever! You can get as low as prime – 0.70% (must qualify) while the current prime rate is 2.75% trending up from 2.25% from 6 months ago. I am suspecting another 0.25% increase in the September 8th announcement due to the Canadian and US currency. It’d be a 50/50 chance. The fixed rates have also decreased slightly below 4% for 5 year fixed rates. The overall interest rates will be trending up, so if you’re buying a home, don’t forget to lock your rate now!
A few other interesting articles and news:
Top 10 Cities to Invest in Canada – The Real Estate Investment Network (REIN) research, again featured on last week’s Financial Post. Let me know if you’d be interested in reading the entire REIN report. I will send you one.
Employment Loss and Gain – In July, BC gained 16,000 jobs in manufacture and services, while Canada overall lost net 9300 full time positions. Economists commented expected slower economy recovery from the initial 2009 jump. BC and Alberta are the only two provinces with a net gain in employments, which is good news to us. Read more here.
Article courtesy of Christine Chien, Mortgage Professional, 604-603-6189, www.BestRateMortgage.com
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
Keep up to date with Vancouver’s changing real estate market, subscribe via RSS or email
When you’re ready to buy or sell Vancouver real estate, contact Manny Riebeling
Effective July 1, 2010, British Columbia will be combining the GST and PST taxes into one Harmonized Sales Tax (HST). The implementation of the HST will not change the taxation on mortgage insurance premiums. However, the HST will be applicable on new construction homes and may be eligible for the HST new housing rebate.
In BC, the HST rate on new construction housing (i.e. both house and land) will be 12% (GST of 5% and PST of 7%)
There will be a partial rebate of the PST portion of the HST in an amount equal to 5% of the purchase price up to a maximum rebate of $26,250. The rebate would eliminate any tax increase on new housing sold for a purchase price of up to $525,000. There would be no phase out of this rebate, such that homes priced above $525,000 would qualify for the maximum rebate amount of $26,250.
New home buyers may be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate is phased out on a straight-line basis for homes priced between $350,000 and less than $450,000.
Examples of the applicable taxes are as follows:
Note: Lender Financing of HST - For qualification and submission purposes, the lender is not required to deduct the rebate from the purchase price. The lender may finance and submit to the insurer, the total purchase price as reflected on the purchase and sale agreement that would include the HST for a total Purchase Price.
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
Keep up to date with Vancouver’s changing real estate market, subscribe via RSS or email
When you’re ready to buy or sell Vancouver real estate, contact Manny Riebeling
The Bank of Canada raised its lending rate Tuesday. The Bank of Montreal (BMO-T62.550.400.64%) responded by lowering its mortgage rates – what gives?
The bank says the rate cut – 10 basis points to 4.25 per cent for a five-year loan – is all about rewarding its customers for being prudent and not borrowing excessively over the past few months.
“Our decision to lower the rate on our popular five-year low-rate mortgage means those buyers who have been patient and careful not to over-extend themselves in bidding wars this spring can still be rewarded by taking advantage of our market-leading five-year low-rate mortgage,” said Jane Yuen, senior manager of mortgages.
It’s also about something else. Most of the money banks lend in the form of mortgages is borrowed, and the bank looks to interest rate swap rates to estimate what it will cost to borrow money throughout the length of the mortgage. The rate takes into account investors’ expectations of interest rates over the next five years, and their evaluation of a bank’s credit worthiness.
The rate is generally going to be higher than the rate on the five-year government bond, because banks are riskier borrowers than the government. Usually the two rates will trend in the same direction, though the spread between them may widen or narrow.
Bond rates have dropped this week, by about 10 basis points. That leaves banks with a choice. They can leave their mortgage rates unchanged and pocket the difference, or pass the cut to their customers.
Throughout May, all of the major Canadian banks lowered rates, after several increases. And chances are they will head higher again, since they’re at all-time lows. But the Bank of Canada won’t be the ultimate determinant – only a major influence.
By Steve Ladurantaye
Globe and Mail Update Published on Tuesday, Jun. 01, 2010 2:18PM EDT Last updated on Tuesday, Jun. 01, 2010 2:19PM EDT
The enclosed information while deemed to be correct is not guaranteed.
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OTTAWA, June 1st, 2010 – The Canadian economy grew by a robust 6.1 per cent in the first quarter, led by housing and consumer spending. Employment growth has resumed. Going forward, household spending is expected to decelerate to a pace more consistent with income growth. The anticipated pickup in business investment will be important for a more balanced recovery. CPI inflation has been in line with the Bank's April projections. The outlook for inflation reflects the combined influences of strong domestic demand, slowing wage growth, and overall excess supply. This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery. Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.
Frequently Asked Questions (FAQ)
Q. How does “prime rate” affect my mortgage?
If you have a variable mortgage, your rate will be adjusted according to the prime lending rate plus or minus the premium or discounted ‘term’ rate. For example, if your mortgage is prime – 0.30%, then your mortgage would be p => 2.50% - 0.30 = 2.20% during the term.
Info Courtesy of Christine Chien, mortgage broker, you can give her a call 604-6361766 if you have any mortgage related questions or log into her web site http://vancouverbestmortgage.wordpress.com/about/
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
Keep up to date with Vancouver’s changing real estate market, subscribe via RSS or email
When you’re ready to buy or sell Vancouver real estate, contact Manny Riebeling
Keep on the lookout for rate alerts tomorrow as key lending rates may change – to be possibly the first increase since July 2007.
Stats Canada has released theirs first quarter report and the economy is hot as its findings say. Real GDP has grown 6.1% the biggest increase in a decade. Residential investment continued to increase for the fourth quarter in a row.
In an effort to slow inflation, Bloomberg has surveyed and 25 of 27 economists say the Bank of Canada will raise the lending rate by a quarter percent. The markets (predicted by the Over night Index Swap) are slightly less sure at 70-80% chance of a rate boost.
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
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When you’re ready to buy or sell Vancouver real estate, contact Manny Riebeling
TORONTO — Canada's biggest banks are lowering the rates for their five-year mortgages, the second reduction this month.
RBC Royal Bank and TD Canada Trust say their posted rate for five-year mortgages will be reduced by 11 basis points to 5.99 per cent, effective Friday.
The other Canadian banks will likely make similar announcements.
The posted rate for five-year mortgages at Canada's major banks started the month at 6.25 per cent but was lowered by 15 basis points on May 11 along with a range of other rate cuts.
Prior to this month, Canadian mortgage rates had been on the rise.
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
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Refinancing is replacing an existing debt obligation such as a mortgage, with a debt obligation bearing different terms. Some people also refer to refinancing as switching or transferring. It all pretty much just means that you are swapping out an old mortgage for a more favourable mortgage.
So why should you consider refinance/switching your existing mortgage? Here are the most common reasons for refinancing:
Reducing your current mortgage interest rate
If you are not planning on moving, but would like to switch from their current higher rate to a lower variable or fixed rate option. Your overall savings should increase due to lower mortgage payments, however, the refinancing penalties would have to be taken into account to ensure that savings are still higher after penalties and fees.
Consolidating your debt
You have credit card debt or other loans that you would like to pay off, so refinancing may be a good option as you will consolidate all your other debts into one payment with your mortgage. The rate you will pay may be lower than that of your high interest credit card for example, so you will end up saving some money in the long term.
Raising money for home renovations/improvements or other investments
Almost the same concept as above. You have been building equity in your home, so now you can take out that equity to increase cash flow. With the extra cash, you can update your kitchen and other home renovation projects.
Reducing the loan term to pay off mortgage quicker and build equity quicker
You will pay less interest and build equity and pay off the mortgage much faster. This also means that you may have higher monthly payments.
Lock-in from a variable rate to fixed rate mortgage
Interest rates on variable mortgages generally increase as prime rate moves up. It may be beneficial to lock into a fixed rate if interest rates are increasing. Doing this ensures that your monthly payments are consistent, therefore allowing you to budget much easier.
Before refinancing, read the fine print on your current mortgage to figure out the penalties, and any other fees. If you are unsure, always seek professional advice.
The enclosed information while deemed to be correct is not guaranteed.
Search for listings on your own Virtual Office Website (VOW), sign up for a FREE subscription and receive listings before mls.ca, in Full Public Printout. search by address, MLS#, street, view walkscore or using your iPhone, Android or iPad.
Keep up to date with Vancouver’s changing real estate market, subscribe via RSS or email
When you’re ready to buy or sell Vancouver real estate, contact Manny Riebeling
Great location, North of 4th, steps to beach, Tennis & Yacht Clubs at Jericho Beach & 4th Avenue shops & restaurants. High ceiling, granite countertops,...
