Wednesday, March 5, 2014
CMHC & Genworth to raise premiums - How & when will this affect you?
Last week CMHC (Canadian Mortgage Housing Corporation) announced it will raise premiums as of May 1st. Genworth, the largest private insurer followed suit a couple days later. They say it is to cover new capital requirements that came into effect since the "great recession" a few years ago. There are 3 main insurer's in Canada. The other one is Canada Guaranty. They may also follow.
This kind of insurance is required for someone who is buying a home with less than 20% down payment. It's a one time fee that's based on a percentage of the mortgage taken out. It can be paid up front or added onto the mortgage. On a 400K mortgage with 5% down the additional premium is about $1600. It will also result in an average $5 increase in your mortgage payment should you choose to add the premium to the mortgage proceeds.
Here's a breakdown of the increases along with CMHC's question & answer media release
Effective May 1st the following rate increase will come into affect for insured mortgages: Please see the linked news release from CMHC:
Effective May 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.
Tony Marchigiano 1-155 Water Street
Tuesday, March 4, 2014
REBGV February 2014 Stats
VANCOUVER, B.C. - March 4, 2014 - In the first two months of 2014, the Greater Vancouver housing market has maintained the steady pace set throughout 2013.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,530 on the Multiple Listing Service® (MLS®) in February 2014. This represents a 40.8 per cent increase compared to the 1,797 sales recorded in February 2013, and a 43.8 per cent increase compared to the 1,760 sales in January 2014.
Last month’s sales total mirrors the 10-year sales average for February of 2,547, with just 17 sales separating the two figures.
The sales-to-active-listings ratio currently sits at 18.9 per cent in Greater Vancouver, a 4.9 per cent increase from last month.
“Home buyer demand picked up in February, which is consistent with typical seasonal patterns in our housing market,” said Sandra Wyant, REBGV president. “We typically see home buyers become more active in and around the spring months.”
New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,700 in February. This represents a 2.8 per cent decline compared to the 4,833 new listings reported in February 2013 and a 12.1 per cent decline from the 5,345 new listings in January. Last month’s new listing count was 0.5 per cent below the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,412, a 9.3 per cent decline compared to February 2013 and a 6.4 per cent increase compared to January 2014.
“With the market continuing to perform at a steady, balanced pace, it’s important for home sellers to ensure their homes are priced correctly for today’s conditions,” Wyant said.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $609,100. This represents a 3.2 per cent increase compared to February 2013.
Sales of detached properties in February 2014 reached 1,032, an increase of 46.6 per cent from the 704 detached sales recorded in February 2013, and a 6.3 per cent decrease from the 1,101 units sold in February 2012. The benchmark price for detached properties increased 3.5 per cent from February 2013 to $932,900.
Sales of apartment properties reached 1,032 in February 2014, an increase of 35.8 per cent compared to the 760 sales in February 2013, and a 1.2 per cent increase compared to the 1,020 sales in February 2012. The benchmark price of an apartment property increased 3.6 per cent from February 2013 to $373,300.
Attached property sales in February 2014 totalled 466, an increase of 39.9 per cent compared to the 333 sales in February 2013, and a 9.9 per cent increase from the 424 attached properties sold in February 2012. The benchmark price of an attached unit increased 0.6 per cent between February 2013 and 2014 to $458,300
Friday, February 28, 2014
Vancouver Firm Will Build Developing-World Home for Each Unit Sold
VANCOUVER - Buy a condo in Vancouver’s notorious real estate market and you’ll likely walk away with a lighter wallet and a sinking feeling you might have overspent. But what if you knew you were also providing a home for a family living beside a garbage dump in Cambodia, one of the world’s poorest countries?
With its official launch Tuesday, Vancouver-based World Housing hopes to make that a reality by partnering with real estate developers who want to donate a new home in the developing world for each unit sold here in the New World.
The project is the brainchild of Pete Dupuis and Sid Landolt, longtime partners in the luxury real estate business, who call it the world’s first one-for-one real estate gifting model. They both say that adequate housing can be life-changing for people struggling to survive in the impoverished slums that surround landfills.
“When you give someone a home, they become completely independent,” Dupuis said.
Since it launched in beta form last year, World Housing has already built 53 homes for families living at the Steung Meanchey dump in Phnom Penh. The 130-square-foot houses are all built on stilts, to protect them from flooding, and have access to shared bathhouses with toilets and running water.
“We’re trying to hit the U.N. standards for adequate housing,” Dupuis said. “When we built our first five homes in November, three of the families had never used a toilet.
The first Vancouver project to partner with World Housing will be Westbank Corp.’s 52-storey condo tower – designed by Danish architect Bjarke Ingels – at the north end of Granville Bridge. Dupuis expects projects in Toronto, Taipei and Honolulu will come on board later this year.
If everything goes according to plan, developers will commit to donate $3,000 from each condo sale to build a home in a dump community; $2,500 of that goes directly to construction and the remaining $500 goes to operations. World Housing isn’t a non-profit or a charity, but instead a “community contribution company” that functions thanks to a partnership with the private sector.
“The real people making the change are the developers and the buyers,” Landolt said. “Those are the heroes in the equations.”
Dupuis and Landolt hope their program will house 30,000 people by 2020, which would involve the construction of up to 5,000 new homes.
The pair were inspired to create World Housing after a chance meeting on a Los Angeles-Vancouver flight with TOMS Shoes founder Blake Mycoskie, whose company gives away a pair of shoes to a child in need for every pair of shoes it sells.
“I got off the plane and said: ‘You know what Sid. We can do that,’” Dupuis said.
Any developer who wants to get involved must first be certified by World Housing, which looks at the project’s sustainability initiatives and environmental footprint. They also need to pass what Dupuis calls the “Sid and Pete good-guy test.”
Are they active in the community? Do they give to charity? Are they, in fact, “good guys”?
Dupuis and Landolt believe that partnering with World Housing will be a massive marketing boon for developers.
“We take their project, which is a for-profit development, and we turn it into a social venture,” Dupuis said.
Besides the knowledge that their purchase has provided someone with a home, buyers will also get a personal connection to the people they have helped. They receive a plaque with the family’s photo on it, get the GPS co-ordinates to view the home on Google Earth and can even fly to Phnom Penh to meet the recipients in person.
At the other end of the equation, the families which receive the homes are closely vetted by World Housing partners working in Cambodia. The children must attend school rather than working in the dump as trash-pickers, the parents cannot work in the sex or drug trades, and the families must be considered good role models in the community.
The new houses are built very close to the dump, so that families aren’t removed from the community where they have lived all their lives.
“They don’t want to move,” Dupuis said. “It’s all about keeping the community as stable as possible and not disrupting it.”
Critically, the families own their new homes outright.
This is especially important in Cambodia, where the severe Communist strictures of the Pol Pot era left most people legally landless — a problem that still has repercussions more than 30 years after the Khmer Rouge was removed from power. In recent years, tens of thousands of poor Cambodians have been forcibly evicted from their homes to make way for large development projects, and because they lack title they have virtually no legal recourse.
The hope is that the benefits of the new housing will extend beyond the new homeowners as well.
“When we go over to the Third World, obviously six to eight people get a home, but also the community starts to change,” Dupuis said.
Construction of the new housing creates what he calls a “micro-industry.” World Housing builds a factory and finds workers among the young people who pick garbage for a living. They’re trained in construction techniques and then can use those skills to find new jobs after the project is finished.
World Housing is also in discussion with groups that work in dump communities in Mexico and the Philippines, and it hopes to start construction work in those countries soon. Dupuis says the aim is to have some of the workers trained in Cambodia travel abroad to help get the new projects up and running.
For more information about World Housing, visit its website here.
Thursday, February 27, 2014
5 Facts About the RRSP Home Buyers Withdrawal Plan
It can be difficult for 1st time home buyers to come up with their first down payment on a home but as you may or may not know you can take the money out of your RRSP as a home buyers withdrawal. The money has to be in there for at least 90 days and has to be for a principal residence. Here are 5 other facts about the plan via Ratehub:
Friday, February 21, 2014
Interest Rates are Getting Even Better as we Approach the Spring Market
As we approach the spring housing market lending institutions are starting to get very competitive and rates have started to fall. Fixed rates, especially the most popular 5 year fixed, have been going down since the fall and may even get a bit lower. Discounts on variable rate mortgages have also increased making it a little easier to make that mortgage payment.
Here are the best rates we are offering here at Mortgage Alliance West:
1 & 3 year fixed are at 2.89%
2 year fixed is at 2.69%
4 year fixed is at 3.29%
5 year fixed is at 3.19%
5 year variable at Prime - .50% or 2.5%
Tony Marchigiano | 1-155 Water Street
Mortgage Broker | Vancouver, BC
cell: 604 505 7109
fax: 604 909 4666
Wednesday, February 19, 2014
Government Reduces Tax Burden on First-Time Buyers
First-time home buyers received welcome news in today’s provincial budget. Any REALTORS® currently working with first-time buyers will want to share this news with them as soon as possible.
The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.
The partial exemption continues and will apply to homes valued between $475,000 and $500,000.
With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.
The government estimates this measure will cost $8 million in lost tax revenue each year.
The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. This increase in the threshold clearly signals our efforts have paid off as in past years.
In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000.
In 2005, the government increased the threshold to $325,000 from $275,000.
The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.
Friday, February 14, 2014
Mortgage Changes from the 2014 Federal Budget
The Department of Finance recently came out with the 2014 federal budget. Within that budget was some mortgage changes. CMT (Canadian Mortgage Trends) discusses the good and bad of these changes in a recent article. The changes are mostly just within the industry itself but may eventually effect an individual borrower. There could also be future mortgage "rule" changes as well but mostly likely only if mortgage growth accelerates at a speed that the finance minister feels uncomfortable with.
Tony Marchigiano | 1-155 Water Street
Mortgage Broker | Vancouver, BC
cell: 604 505 7109
fax: 604 909 4666
Thursday, February 13, 2014
Unbelievably Terrible Real Estate Photos
In our line of work we come across some unconventional photos of properties for sale, but one blogger has created an archive of real estate photos ranging from hilariously out of the ordinary to downright terrifying. We had a pretty good laugh taking a look at these photos, which one is your favourite?
And my personal favourite:
Friday, February 7, 2014
REBGV January 2014 Stats
VANCOUVER, B.C. – February 4, 2014 – The first month of 2014 saw home sale and listing
Friday, February 7, 2014
Glass Laneway Houses Coming to Vancouver
With over 1,000 laneways homes either constructed or under construction in the City of Vancouver, demand for them has never been higher. Last year alone 348 permits were issued in Vancouver.
The vast majority of them lack architectural variety, but that may soon change as award winning architect Gair Williamson has designed a new prototype exclusively for Vancouver’s Smallworks.
Designed to meet the City of Vancouver’s new LWH regulation changes for a 33 foot lot, Williamson’s Glass Brick 33 Lane House embodies urban modernism at perhaps its greatest.
The Glass Brick laneway home is a single-storey 470 to 650-square foot house built with insulated Japanese-designed glass brick walls. This allows for both privacy and light.
The interior features an open-space layout using sliding screens to subdivide space functionally and flexibly.
According to the Vancouver Sun article, taking laneway housing to a whole new level, by Bob Ransford, “high windows and skylights can be added to strategically capture long views of any surrounding tree canopies, connecting the interior to the exterior environment.”
Friday, February 7, 2014
Canadian Mortgage Trends Names Mortgage of the Year for 2013
Is there such a thing as a Mortgage of the Year? One might not think a mortgage would be something to celebrate or recognize. Maybe the paying one off! But mortgages are not all equal. They're really good ones and really bad ones.
For 2012 CMT (Canadian Mortgage Trends) named Coast Capital Savings "You're the Boss" mortgage of the year. For 2013 it was RMG Mortgages. RMG may not be a household name yet but with it's, still available, 35 year amortizations as well as excellent options to pay down your mortgage quickly it's definitely making headway.
Friday, January 31, 2014
Canada's Top Cities for Real Estate Investment
Real estate investments in Canada are just as lucrative today as they were before the worldwide financial crisis, in fact, arguably even more so. Due to Canada’s diverse regional economies, the Canadian real estate market is now better analyzed on an individual provincial basis.
As usual, the most vibrant real estate jewels are hiding in the small to mid-sized towns, where relatively low housing prices combined with surging local economies make for a more predictable and stable market.
Looking at a town’s future, rather than the success of its past, is the best way to scout out an investment property in Canada. With its arresting beauty, vast territories, and flourishing national prosperity, Canadian real estate investments remain a worthy venture.
Business Review Canada takes a look at some of Canada’s strongest real estate investment cities.
The City of Barrie, Ontario
Located only an hour’s drive from lively Toronto, Barrie is one of the fastest growing cities in Canada. Barrie is a charming and vibrant community that offers a laid-back lifestyle for people who prefer a slower pace with the convenience of a multi-cultural city only a short distance away.
Barrie is surrounded by the scenic wilderness that has captivated visitors from around the world for centuries. The city also has numerous winter recreation activities and facilities, ample parkland, and a breathtaking waterfront. The historic downtown boasts a variety of local fashion boutiques, music and arts scene, and a multitude of pubs and restaurants. In recent years, Barrie has managed to bloom from a picturesque vacation destination to a year round thriving economy.
The economy is multi-faceted and includes a full range of businesses from high-tech, industrial, and agricultural. The city has remained strong during the economic crisis due to new development, continuous improvements in public transportation, steady job growth, and economic diversification.
Maple Ridge & Pitt Meadows, B.C.
Maple Ridge is currently transforming their historically poor transportation infrastructure with the Translink/Gateway Project, which will address growing congestion and reduce travel times. The region will see tremendous benefit from the project with not only increased accessibility to other areas, but with greater opportunity as businesses move into the area.
The transportation and infrastructure investments have catapulted land value and building prospects for the area. While both commercial and residential properties remain at below-average prices, they are expected to skyrocket in value down the road. As the transportation improvements start to take hold, the city has predicted that an additional 400 businesses will call the area home.
Maple Ridge and Pitt Meadows is a perfect distance away from the Metro Vancouver area giving residents the luxury of living in a tranquil town while still having access to a big city.
City of Surrey, B.C.
With its cultural diversity and international flavor, Surrey is an emerging metropolis with a dynamic local economy. With over 6,000 acres of parkland and green spaces, and an array of bike lanes and trails sprinkled throughout the city, Surrey offers residents an arrestingly beautiful landscape with all of the amenities of a bustling city.
Surry attracts over 1,000 new residents every month and is currently the second largest city behind Vancouver in the province. However, it is expected to become the largest city, surpassing Vancouver in the next ten years. With two border crossings to the United States, and a $15 billion a year in trade with its neighbor, Surrey is in a prime location for local, national, and international business.
As business opportunities in Surrey increase, and the population continues its steady climb, the city’s tremendous growth looks to continue for many years to come.
Red Deer, Alberta
At the heart of the strongest economy in Canada, the Red Deer corridor invites those looking for strong investment opportunities. This perfect blend of country and city life makes our list for its revitalization efforts, economic stability, and its location as the main commercial and retail center for all of Central Alberta. As a halfway point between Edmonton and Calgary, Red Deer is perfectly situated to become Canada’s best location for real estate investments.
Businesses in the Red Deer region benefit from several competitive advantages: low operating costs, the lowest combined tax and utility rates in Canada, and access to key markets. It’s a vibrant and culturally diverse place to work and live supported by a young, industrious, and educated population.
Red Deer offers a lifestyle with all of the advantages of the city, but without the traffic. Boasting a booming rental and real estate market, as well as localized job growth, Red Deer will continue to attract people from across the province.
Retrieved from: http://www.businessreviewcanada.ca/money_matters/canadas-top-cities-for-real-estate-investment
Friday, January 31, 2014
What's Better: Contribute to Your RRSP or Pay Down Your Mortgage?
A recent article in the Globe & Mail asked the question: Should you contribute to your RRSP or pay down your mortgage? The answer depends on a number of things including what tax bracket you're in among other considerations. In some cases you might benefit from contributing to an RRSP. Others may benefit from paying down their mortgage, especially if you see yourself throwing a mortgage paid off party one day in the future!
Another idea, and one the article doesn't mention, is contributing to your RRSP and taking the tax refund and applying it towards your mortgage balance. That's where I come in; as a mortgage advisor I can look for a mortgage with excellent & flexible prepayment options or review them with you if your mortgage is already up and running.
Again, every person's situation is different so working together with a Mortgage Advisor as well as a Financial Planner to find out what's best for you is a great idea.
Friday, January 24, 2014
Looking for a Project? 12 Vancouver Fix-Ups for Under $800K
Living in Vancouver is wonderful. It's one of the most liveable cities in the world. And the beauty of residing in a place where everyone and his cockapoo wants to live, is the opportunity it affords you to craft your perfect house from the studs up.
That's right. Because who would want to buy a nicely cared for, tastefully finished, fully maintained property in a desirable neighbourhood, when they could tackle a teardown (sorry, fixer-upper) in an up-and-coming location with few amenities but lots of character? Now, that's what makes a house a home, isn't it?
And what bargains you can find if you just lower your expectations a little, and prepare to compromise on those tiny details. Imagine: you can actually buy a single family home for under $1 million. Even for as little as $649,000. We know, right? Where do we sign?
1. 3750 Inverness St., offered at $649,000
2. 1805 E. 37th Ave., offered at $658,000
3. 4952 Chatham St., Offered at $699,000
4. 4525 Commercial St., Offered at $718,000
5. 1121 Keefer St., Offered at $719,000
6. 2981 McGill St., Offered at $725,000
7. 1850 E. 38th Ave., Offered at $748,000
8. 7433 Main St., Offered at $750,000
9. 3621 Cambridge St., Offered at $759,900
10. 3518 Williams St., Offered at $775,000
11. 617 E. Pender St., Offered at $789,000
12. 536 E. 55th Ave., Offered at $799,000
Retrieved from: http://www.huffingtonpost.ca/2014/01/22/vancouver-real-estate-fixer-uppers-million_n_4632663.html#slide=3335043
Friday, January 24, 2014
The Bank of Canada Rate Decision
The Bank of Canada left the Prime lending rate the same, once again, at 1%. It has now become more dovish and said there is just as much of a chance of a rate cut as a rate increase. This is good for us borrowers, especially those in variable rate mortgages or people thinking of taking a variable rate term. They also stated that it will most likely be 2 years before they start increasing the Prime Lending Rate.
The reason for their decision is low inflation and even a small chance of deflation.
Here's an article from Canadian Mortgage Trends recapping their decision:
Friday, January 17, 2014
2014 Decor Trends Include Pale Walls, Bold Furniture
With a new year come new trends in home design and decorating. Among them: paler walls contrasted with colorful furniture, and plenty of personal expression, design experts say.
Whisper-soft, ultra-pale shades of pink —described by designers as "blush tones" — are back. But the '80s haven't returned, says designer Brian Patrick Flynn says, at least not entirely.
"What's different about blush this time around is what it's paired with. In 1985, you'd find it paired with mauve and black with tons of shiny brass accents. Flash forward to today and blush is likely to be paired with preppy, masculine tones," says Flynn, founder of Flynnside Out Productions.
His favourite blush paint is Barely Blush from Glidden, which he contrasts with navy blue: "The deep, rich personality of the navy actually washes out the blush, almost causing it to look white, and the overall effect is fresh and gorgeous."
Speaking of white walls, Los Angeles-based designer Betsy Burnham sees those coming back in a big way.
"I used to think white walls looked unfinished," she says. "But I've completely come around on this one, because white is the ultimate palette cleanser.It gives every space — even the most traditional — a modern edge, and sets the stage wonderfully for layers of colour in upholstery, accessories, area rugs and art."
But while wall colours are getting softer and paler, the opposite seems to be happening with furniture.
"Strong colours on upholstery are becoming more of the norm," says Kyle Schuneman, founder of Live Well Designs, who spent a chunk of 2013 designing his first line of furniture, in collaboration with retailer Apt2B.
He opted to create sofas in bright blues and shades of orange because "a bright sofa is no longer just for a creative office waiting room," he says. "People are bringing them into their homes."
One bold colour to approach carefully this year: red-violet. "Red-violet is the Pantone colour of the year for 2014," Flynn says. "As a designer whose specialty is using colour, let me tell you something: Red-violet is about as complex as it gets."
"My trick for using it right is pairing it with black, white and brass," he says. "It's not all that overwhelming, since it's balanced by the neutrality of the black and white, and made a bit more chic and regal with the brass."
"For accessories, the trend seems to be getting away from colour and going more into rich textures like horn, aged metallics and linens," Schuneman says. "The absence of colour is becoming chic for smaller items."
One texture Flynn says will have a big moment in 2014: felt.
"Have you looked at Pinterest lately? It's like every fifth photo you see involves felt! Ever since the handmade movement kicked in back in 2010, felt has been used in unexpected ways and in a modern fashion," Flynn says. "What makes it such a favourite for designers is how easy it is to work with. It's amazing for door upholstery due to its stiffness. It makes for awesome craft material, since it's easy to cut and stitch, and it's awesome for kids."
An easy project for even the DIY-challenged: "I modernized the classic kindergarten felt wall in a boy's room by covering a wall with batting, then literally upholstering it with white and blue felt, then cutting tons of felt into random objects and characters to give the kids something interactive and stylish."
"The idea of personalization is becoming stronger and stronger," Schuneman says. "People are wanting their homes to reflect a more unique perspective."
So rather than assuming that everyone will be buying the same popular items, "stores are doing limited runs on items more often, like art in series or a special brand collaboration for just a season," he says.
Burnham agrees. Homeowners are increasingly looking to "large-scale wall hangings" and other pieces of art to express themselves, she says, rather than doing it with bold wall colour.
"Boy, am I sick of accent walls.I really believe that trend is out!I vote for art every time," Burnham says."If you're looking for something to cover big, blank areas,shop on Etsy for macrame pieces. They add such wonderful texture to your walls, and artists like Sally England have brought them back into vogue."
She also recommends hunting for vintage posters that speak to you. Find them through online dealers and auction houses, and then frame them in a group.
"While the vintage ones are a bit of an investment," Burnham says, "they can be a lot more reasonably priced than large-scale paintings and photographs."
Another way Americans are increasingly customizing their space, according to Flynn: Western-inspired décor.
"For years I've seen taxidermy make its way into mainstream design, yet reinvented in new ways. Lately, I've been looking to Ralph Lauren-like cabins of the Western United States for inspiration in my own home. I think a lot of cabin-inspired colours such as pea greens, hunter greens and camouflage-inspired prints will become super popular."
Flynn's cabin in the north Georgia mountains is currently decorated in pea green and accented with heavy, masculine fabrics, Western hats and antlers.
TACKLING AWKWARD SPACES
"Tons of new-construction homes have awkward bonus rooms" that homeowners aren't sure how to furnish, Flynn says.
One suggestion: "Why not turn that space into an extra sleeping area that can accommodate multiple guests, but in a super-stylish, architectural manner? That's where the art of built-in bunks comes in," Flynn says.
"I turned a dated attic into a bunk room and play space for two young brothers by using one wall as floor-to-ceiling, mid-century-style bunks. This isn't exactly cheap to do, but it's well worth the investment since it maximizes space and adds an architectural focal point, albeit one that's functional, to otherwise dead space."
Retrieved from: http://www.edmontonjournal.com/decorating/2014+decor+trends+include+pale+walls+bold+furniture/9371767/story.html
Thursday, January 16, 2014
A Surprising Poll from BMO for Amortization
BMO recently completed a poll asking people what their knowledge of the term amortization was. Over half (52%) were not even somewhat familiar with the word. Not to say that people aren't familiar with the concept of amortization. Amortization is, of course, the life of a mortgage. Understanding the concept is important but learning the ways to minimize the amortization is even more important. Your mortgage advisor should be defining the word, concept and the multiple ways to minimize amortization as well as recognizing the mortgage offers out there that restrict your ability to do so.
Friday, January 10, 2014
Does the fact that lifespans are longer help you out as far as mortgage debt?
In a recent article in the Globe & Mail it suggested that time is on your side; meaning because lifespans are longer you may have less financial stress even when it comes to mortgage debt. People are living to 90 and pass.The writer proposes that there is not as great a need to figure out what your going to do career wise in your teens, to maybe take 4 classes a semester and work at the same time taking 5 years to get a degree in order to come out of school with less debt. Even if you buy your first home in your 40's you could be paid off in 22 years or less. By paying on a bi weekly accelerated basis you'll bring a 25 year amortization down to 22 years. And, I also advise my clients to contribute to your RRSP, if you can and it makes financial sense, than take the tax refund and make a lump sum payment annually to your mortgage. This will reduce the life of your debt substantially.
Here's the full article with a life expectancy tool by Sunlife included:
Friday, January 10, 2014
2013 Year in Review: Vancouver Real Estate
THE LOWER MAINLAND real-estate market bounced back this year from the dreadfully low number of transactions in the latter part of 2012. Last year’s slowdown was caused, in part, by Finance Minister Jim Flaherty’s decision to cut the maximum amortization rate to 25 years, which had a disproportionate impact in the Lower Mainland, where housing prices are traditionally higher than in most other parts of Canada.
Prices remained stable, too, confounding many bloggers who’ve been predicting a Japan-style housing implosion. Part of the reason is continued migration—B.C. Stats predicts 38,000 new arrivals in the province this year and another 41,300 next year.
There’s also a rising number of residents entering the 25- to 44-year-old age group, which drives aggregate demand from first-time buyers, according to the Canada Mortgage and Housing Corporation. Below, you’ll see our picks for the most significant real-estate stories of the year in Greater Vancouver.
False Creek North
Surrey City Centre
Disappearance of cultural venues
Retrieved from: http://www.straight.com/news/550056/2013-year-review-real-estate
Friday, January 3, 2014
REBGV Stats December 2013: Modest Home Sale and Price Increases
VANCOUVER, B.C. – January 3, 2014 – The Greater Vancouver housing market maintained a
New listings for detached, attached and apartment properties in Greater Vancouver totalled 1,856