March 5 – Bank of Canada left rate unchanged this week. http://www.bankofcanada.ca/en/fixed-dates/2010/rate_020310.html
GUIDELINE CHANGES:
Lots of talk about the new RULES. I have spoke to CMHC and Genworth representatives and a lot of details are yet to be confirmed. Here are a few things that appear to be in our future:

- Buyers WILL still be ABLE to put 5% down on a purchase.
- The 5 year fixed rate will be used to qualify variable rate mortgages and terms shorter than 5 years.
- Rental offset of 80% will no longer apply. 50% of rents will be added to income
- 20% down for rental properties
- April 19th – If CMHC institutes this change as they have others, an approval before April 19th should still follow the current guidelines and NOT the new guidelines – even with a completion after this date.

These changes should NOT change the guidelines for most buyers putting more than 20% down.

My thoughts:
The rental offset change will have the most affect in Vancouver. For buyers with less than 20% down and using the basement suite to qualify, the change will be large. A $1,000 a month suite under the old rules increased buying power by about $185,000. Under the new rules, buying power will be increased by only $45,000.

As long as the five year rate is discounted, then this will reduce a purchasers buying power of an income of $50,000 from $350,000 to about $330,000. This example assumes no other debt, excellent credit and assumes standard condo fees, taxes and heat.

In Vancouver, it has been almost impossible to get a rental property approved with less than 20% down under the old CMHC guidelines, so I think this will have almost no effect in Vancouver.

RATES:

Variable:
- Prime = *2.25% (Next announcement date is (April 20th)
- Prime minus 0.40% (currently 1.85%) – closed variable
- Prime plus 0.40% - open variable mortgages
- Prime plus 0.50% -lines of credit

Fixed:
1yr – 2.35% 3yr – 3.25% 5yr – 3.69% 7yr – 4.95% 10yr – 5.20%

- Conditions may apply to rates quoted.


Payment per $100,000 mortgage @ 3.25%

- 25 year amortization: $486.17

- 30 year amortization: $434.01

- 35 year amortization: $397.70

The Associated Press reported September 3, 2008 that the Bank of Canada has held its key interest rate unchanged at 3 percent and gave no indication of future interest rate move. That’s good news for first time home buyers or buyers looking to finance and upgrade to a new home or investment property. Combined with the current market conditions here in the lower mainland, your first home or your dream home is more attainable than it has been in a long time. With the Olympics fast approaching, this window of opportunity may not last long so be sure to take advantage today! If you’ve been waiting for the craziness to pass to buy, now is a great time to start looking! You can browse the MLS listings right from our website and use our mortgage calculator to determine affordability or contact us to receive up to the minute listings for properties that match your desires. We’re happy to answer any questions you may have – give us a call or drop us an email today!

The sky is falling! Well, not exactly. While local media would have us believe that the Vancouver real estate market is spiraling into the abyss, the reality is that an over inflated market is coming into balance, creating ideal circumstances for those looking to buy, or upgrade their lifestyle. Buyers now have more flexibility and buying power, and can find better values in their price range. All is not lost for sellers, either. A well priced home will still sell in a reasonable amount of time. Remember, real estate markets are cyclical and while some value may be lost in the short term for those who bought at the height of the market, there is still great value in real estate as an investment.

We'd love to help you find your dream home! Give us a call today to start your search.

Join us at 1402-1723 Alberni "The Park" for our open house Saturday August 9th from 12-2pm. Dramatic VIEWS of Stanley Park, Lost Lagoon and glorious sunsets, all add up to sophisticated, cool, chic city living. S/W corner suite has its own private garage with oversized secure in-garage storage. Come see for yourself how fabulous downtown living can be!

Summer has finally arrived in Vancouver! With the Real Food movement gaining momentum, more and more people are looking to grow at least some of their own food. The good news is you don’t need a yard to grow vegetables. Container gardening has been a popular choice for urban gardeners for some time now, but it’s not just for flowers anymore! A sunny window or balcony will suffice for many summer vegetables. Grow tomatoes in that hanging basket, zucchini on a trellis, or plant an herb garden on a sunny window sill. Don’t have the right exposure? You can still grow a salad garden using certain herbs and lettuce varieties on a balcony that gets limited sun.

We’ve got some great properties right now that are sure to delight the gardener in you! 1108-175 W. 1st St. in North Vancouver not only has spectacular views, but also has a big south west exposed balcony for year round gardening! 2105 W. 19th Ave. in Vancouver has a huge yard with mature fruit trees sure to satisfy your gardening desires. Check out our listings page or contact Matt or Darlyne to help you find the perfect gardener’s paradise, whether you’re looking a house with a sunny yard, or an urban oasis with a rooftop deck.

Enjoy the summer!