VANCOUVER, BC – Greater Vancouver home sellers were more active than buyers in January and overall home prices, according to the new MLS® Home Price Index (MLS® HPI), continued to experience more stability and less fluctuation compared to the beginning of 2011.
I had the privilege of taking a client out on Friday afternoon for a walking property tour amidst the Olympic fun. What a great time to look at downtown properties with the view of hundreds of thousands of people roaming the streets of Vancouver. The city is truly alive!
This was one of my three tours this weekend, and the consensus among my fellow Realtors is that the market is still thriving. It appears we had all anticipated a slow couple of weeks throughout the Olympics, but it seems to be the opposite. Many people from out of town are taking advantage of being here and are checking out Vancouver Real Estate. Will the Olympics have a positive impact on our Real Estate Market? I'm very excited to find out!
Today the Finance Minister announced the new mortgage rules that will take affect in Canada on April 19 of this year. Below is a summary of the 3 major rule changes and how it could affect you....
1. Borrowers will need to qualify using a 5-year fixed rate regardless of what term they choose. If you want a 1.90% variable rate, for example, you will need to show that you can afford payments at a higher fixed rate, like 4.09%.
REASON: This will help Canadians prepare for higher interest rates in the future and ensure they can still afford the payment in the event their rates rise at renewal or if in a variable rate mortgage.
2. 90% Maximum Refinancing - No longer will you be able to refinance your home to 95% of it's value. 90% will be the new maximum.
REASON: To ensure borrowers are not using all their home equity in order to consolidate high interest debts with lower mortgage rates. This will also help home owners from going into a negative equity position if the market begins to drop.
3. Minimum 20% Down Payment required for investment properties. People buying non-owner occupied rental properties will need to put down 20% to get an insured mortgage, versus 5% currently.
REASON: This measure is likely aimed at tempering speculative buying of real estate by reducing the leverage available to buyers.
A mortgage broker is a certified professional who seeks the best mortgage terms for you by accessing a network of lenders that includes major banks, trust companies, credit unions and finance companies. (Brokers may also draw on local lenders that aren't part of a network.) This stable of lenders provides brokers with interest rates on a near-daily basis keeping us on top of the market trends and changes. More information here.
Trish Pigott of Meridian Coastal Mortgages is, in my opinion, one of the best Mortgage Broker in the Lower Mainland! To view more information on Trish and her company, visit her website www.trishpigott.com.
As mentioned on my home page, benchmark prices have increased drastically in both the East and West sides of Vancouver. Although things may slow slightly during the Olympics, a strong Spring Market is a sure bet.
For the full Real Estate Board of Greater Vancouver's January 2010 Statistics Package click here.
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