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Vancouver Mortgage News and Advice

on 25 October 2017
Take advantage of the best mortgage rates in Vancouver while you can. We can all breathe a sigh of relief this morning as the Bank of Canada has decided to not increase the overnight rate, instead they’ve kept it unchanged at 1%.

Earlier this year we experienced two rate increases, however the Bank of Canada has appeared to take a more cautious approach this time around. The bank has stated that they’ve held off based on the strength of the CAD dollar, as it’s slowed down the inflation we saw over the last 18 months. We are expected to see interest rates increase by 2% by the end of next year, although these changes will impact Canadians, they are at least going to come at a more gradual pace. If you’ve considered purchasing or refinancing, we suggest applying for a mortgage loan online as soon as possible, in order to secure the best mortgage rates in Vancouver before we see yet another rate increase.

The next scheduled rate announcement is set to take place December 6, 2017.

What this means for Canadians looking to purchase or refinance:

Given the recent changes to the mortgage approval guidelines, holding off on a rate increase will help Canadians looking to purchase or refinance, qualify on a lower rate before the new mortgage rule is in effect (January 1, 2018).

We do however urge anyone looking to purchase in the very near future or wanting to refinance, to contact our office as soon as possible to secure a signed mortgage approval, at their lowest available rate before January 1, 2018.

Bank of Canada makes interest rate annoucment

Read this for more details on the new mortgage rule, effective January 1, 2018.

More about the Bank of Canada rate announcement…

"The current stance of monetary policy is appropriate" "While less monetary policy stimulus will likely be required over time, we will be cautious in making future adjustments to the policy rate.” says the bank.

The Bank of Canada has assured it will pay close attention to data when it comes to making further decisions regarding higher interest rates, wage growth, inflation and economic capacity.

The first three months of this year the economy increased at an annual rate of 3.7% and 4.5% in the second quarter. We’re expecting to see real GDP growth at an annual rate of 1.8% in the third quarter and 2.5% for the remaining three months. There is speculation that growth will likely continue, although slow compared to its annual pace of 3.1% this year, 2.1% in 2018 and 1.5% in 2019. Last week OSFI (Office of Superintendent of the Financial Institutions) announced yet another mortgage rule which is forecasted to trim 0.2% from the GDP by the end of 2019, according to the bank.

According to the Monetary Report, residential consumption and investments as we know, had great effects on Canada’s recent growth. However the consequences of higher interest rates, household debt and tightened lending guidelines will likely cool the inflated real estate market.

Read this for the October 2017 Monetary Policy Report

on 12 April 2017
FIRST TIME HOME BUYER PROGRAMS – APPLY FOR A MORTGAGE PRE-APPROVAL LOAN ONLINE

Tax Break
First Time Home Buyers can purchase up to a $500,000.00 home without paying property transfer tax. This is great news given the rising house prices in Vancouver. No better time to get started today and apply for a mortgage pre-approval online. 

The BC Government has issued amended First Time Home Buyers requirements. The qualifications for the exemption are as follows: 

  • A first time home buyer can now qualify for a full exemption with a purchase price of less than $500,000.00 (previously $475,000.00).
  • A partial exemption is available if the purchase price is between $500,000.00 and $525,000.00 Home Buyers’ Plan (HBP)

Buy your first home with the HBP program, take the first step and apply for a mortgage pre-approval online. The HBP is an effective way to help first time home buyers access funds for a down-payment by allowing for withdrawals of up to $25,000 per person (or $50,000 per couple) from registered retirement savings plans (RRSP’s).

Discuss your options with a Dreyer Group mortgage professional and secure your lowest mortgage rate for up to 120 days with a pre-approval.

Borrowed Down-Payment
Home buyers` can receive down-payment from borrowed sources such as personal loans, secured/unsecured lines of credit, and credit cards.

Purchase Plus Improvements Mortgage
Available to all home buyers’, but especially great for first time home buyers purchasing a fixer upper. The Purchase Plus Improvements Mortgage could be the perfect option when buying a home that needs a little work. For as little as 5% down, the Purchase Plus Improvement Mortgage allows you to make all your improvements as soon as you take possession while rolling the renovation costs into one mortgage.

Vancouver Mortgage Brokers Favor MPC’s Request to Stop Mortgage Rules
on 10 February 2017

Vancouver Mortgage Brokers in favor of MPC (Mortgage Professionals Canada) request to put a stop to any additional mortgage rules, at least until we are able to distinguish the effects of these recent changes. Newly implemented legislation such as the “mortgage stress test” and the additional 15% PTT (property transfer tax) for foreign buyers in Metro Vancouver, had appeared to dampen the housing market, decreasing transactions towards the end of the year.

These recent changes have not only negatively affected Canadian Consumers; it’s also complicated the financing process which has resulted in a moderate rate increase for non-bank lenders. MPC CEO Paul Taylor spoke to the Department of Finance requesting to at least put a halt on any additional rules until we have a strong hold on the effects we may continue to experience. MPC hopes that certain facets are revisited and potentially revised to benefit Canadians and still protect the government against over-leveraging. With the changes Canadians are being faced with, it is more important now than ever to find a mortgage broker. 

Get connected with a Vancouver mortgage broker by applying for our 30 second online application.


For more information please click here for full article.

 

on 27 January 2017

Insurance Premium Increase Effective March 2017 – Secure Your Best Mortgage Rates Today

The Canadian Housing and Mortgage Cooperation has announced that it will be increasing insurance premiums as of March 17, 2017.

With recent announcements of an insurance premium increase it may be more important now than ever to secure your best mortgage rates in Vancouver today. 

A typical insured mortgage will only have a “minor” increase, approximately an additional $5 per month. Dissimilar to previous increases which have commonly effected buyers in the high ratio category, these changes will have more of an impact on buyers with larger down payments.

Whether you are considered a high or low ratio borrower it’s important to secure your best mortgages rates today while rates are still at all-time lows.

Click here to apply for a mortgage online.


Example 1:
Buyers with a down payment of 15% will have a rise by 100 basis points (1/100 of a percentage point). Buyers with a 5% down payment will see premiums increase by 40 basis points.

Example 2:
For a buyer with 15% down payment on an $850,000 mortgage will pay an average increase of $40 a month. Whereas buyers with a 5% down payment on $150,000 mortgage will pay an average increase of $2.82 a month.

These soon to be implemented increases are intended to protect lenders in the event that a borrower defaults on the mortgage. Lenders are required to take out mortgage insurance on any loan where the borrower has less than 20% down payment.

For more information on the increase of insurance premiums please click here for full article.

*High Ratio Mortgage: A high ratio mortgage is when a borrower has less than 20% down payment of the purchase price.
*Low Ratio Mortgage: A low ratio mortgage is when a borrower has 20% or more down payment of the purchase price.

Financing Vancouver Homes
on 24 February 2016

January has been full of ups and downs especially when it comes to financing Vancouver homes, this intimidating market is seeming near impossible to tackle without professional guidance . The stock market has been a roller coaster. The dollar has been dropping with no end in sight and oil prices are well, anyone’s guess. Japan is now in a negative interest rate environment. Home prices continue to rise in Vancouver as listings are becoming scarce. In fact, Canada has found itself on another top-10 list of high real estate prices.

According to Demographic (www.demographia.com), Vancouver has been ranked as the third least affordable city with Hong Kong and Sydney at first and second place. With Vancouver being ranked as the third least affordable city, reaching out for professional assistance and advice may develop into a neccesity for all when financing Vancouver homes. Comparing median house prices and median wages to determine affordability, the study points out that the restriction of land use is a big contributor to the lack of affordability.

Toronto did not make it into the top-10 however it does rank as the third least affordable market in Canada. There are signs that this may be changing. Colliers International figures show that in the first three quarters of 2015 sales of rose from 29 to 35 percent for residential land for townhomes and single family dwellings as compared to the same period last year. Please contact our team to assist you, wherever we can.

Dreyer Group Vancouver will help you finance your home, rising prices and the lack of affordability are on the minds of Vancouverites around the city!

Please contact our team, we're here to help! 604 669-6006

 

 

on 03 February 2016

With the lowest mortgage interest rates in history and a large volume of well-priced condos for sale throughout the Lower Mainland, this is the best time for renters to find a Vancouver mortgage broker and get into the real estate market. If you want to stop paying rent in Vancouver  then call your mortgage broker.

Here are some numbers for you to consider:

Read more

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