Bank of Canada to Increase Rates?

The nine member monetary policy council with the CD Howe institute consensus is that the the Bank of Canada should raise it's current overnight rate from 4.25% to 4.5% immediately. The reasons are straight as stated in a statement that they released: "Both headline and core inflation are running ahead of the bank's target,"

The core inflation rate which excludes items such as gasoline and fresh fruit and vegetables — hit a four-year high of 2.5 per cent in April.

Mortgage Rates have already begun to rise along with bond rates in anticipation of the next Bank of Canada meeting in July.

Mortgage Rate Update

Here are mortgage rates available in Canada as of May 25, 2007.

1 Year 5.55%
3 Year 5.65%
5 Year 5.49%

Best Variable Mortgage Rate is Prime minus .90%

Parade of Renovated Homes

Professionally renovated homes opened to public

The Greater Vancouver Home Builders’ Association (GVHBA) Renovation Council invites the public to tour 13 professionally renovated homes in Burnaby, Delta, Langley, North Vancouver, Port Coquitlam, Surrey, Vancouver, West Vancouver and White Rock on Sunday, June 3 from 10 a.m. to 4 p.m. The 14th annual Parade of Renovated Homes showcases leading-edge design, advanced construction techniques, and innovative building products.

Projects include a multiple award-winning West Coast oasis in Port Coquitlam, complete renovation of a two-storey North Vancouver home, extreme kitchen makeovers, modernization of a 1960s home for a growing family, environmentally conscious upgrades and the transformation of a 1920s home designed to reflect Vancouver’s ethnically diverse community.

“Professional renovators, many of them award winners, will be on site to discuss their craftsmanship and offer expert advice. Renovation projects range from $75,000 to more than $700,000, offering people who view the homes an abundance of ideas they can incorporate into their own renovations,” said GVHBA Renovation Council Chair Alvin Epp.

Admission is by passport, available at each home for $10 per person. Children 17 and under are free. Passports can be purchased at any home, then used for entry to the remaining 12 homes. Part proceeds will help fund the purchase of tools, building materials and safety gear for a carpentry training program offered by Guildford Park and Frank Hurt secondary schools in Surrey.

B.C. homeowners are expected to spend more than $6 billion improving their homes this year. The Lower Mainland will account for 65% of this renovation activity.

The addresses will be posted on Thursday, May 31, to respect the privacy of the homeowners.

West Vancouver

JHC Craftsmen Ltd., 604-980-7818, www.jhcrenos.com
This award-winning renovation transformed a 20-year-old West Vancouver house into a luxurious home for living and entertaining. The completely redesigned 360 sq. ft. kitchen features extensive use of granite and stainless steel. The island was refinished and fitted with a five-burner cooktop range, part of the new high-end stainless steel appliances package. The bathroom was renovated to create a spa-like atmosphere with a frameless glass shower, soaker tub and in-floor heating. A new wine room was built underneath the stairs.

North Vancouver

CCI Renovations, 604-980-8384, www.ccirenos.com
This 23-year-old home was uninspiring, dark and worn out. This strictly interior renovation concentrated on opening up a new gourmet kitchen space to the dining and living rooms. The powder and main bathrooms received new fixtures and finishes while the master ensuite was completely rebuilt, now featuring a luxurious walk-in shower with a frameless glass enclosure. The rest of the house received a much needed update, with new flooring, paint and millwork, to help give the home a fresh new look and feel.

CCI Renovations, 604-980-8384, www.ccirenos.com
At 40 years old, this kitchen was ready for an extreme makeover. The new kitchen was expanded into an adjacent room and opened up into the nook to the other side. The result of this architecturally designed kitchen, by Griffiths Uhryniuk Architecture, is an open-plan, multi-task, state-of-the-art layout. Using natural maple cabinets allowed for the use of a number of different complementary materials on the counters, floors and walls such as butcher block, stainless steel, bricks and slate. The area is warm and intimate and great for entertaining.

RJR Construction Management Ltd., 604-254-1760, www.rjrrenovator.com
This 1960s North Vancouver home was in need of a makeover to enhance its curb appeal and improve the living space. A sloped glass shed roof extension was added to the exterior of the home. The front stairs were rebuilt and the rooflines were modified to provide a covered entry. The original extension did not suit the home’s style nor did it provide a comfortable living environment due to the low headroom, so it was updated. Extending and enclosing the carport were the finishing touches to this exterior makeover. The kitchen and master ensuite were redesigned to modernize the look and utility.

Burnaby

Quinton Construction Ltd., 604-271-4876, www.quintonconstruction.com
Situated near the east shore of Deer Lake in the Buckingham Heights area in Burnaby, this 33-year-old, two-storey, 2,800 sq. ft. house underwent a major renovation. Approximately 1,400 sq. ft. were added, including a new upper, one-half storey floor. Critical to the home’s open flow is a new staircase with frameless glass railings and walls. The exterior vertical wood siding and a low-pitch roof were transformed with extensive new roof forms, board-and-batten cladding and asphalt shingles. The home now beautifully blends an Old World craftsmanship exterior with a contemporary interior.

Vancouver

Intermind Design Inc., 604-338-9936, www.interminddesign.com
This 1920s home was rebuilt to incorporate a contemporary design which reflects Commercial Drive’s international flavour and complements the neighbourhood’s existing architecture. The exterior upgrade introduced a front porch and upper balcony beams, with a show-stopping two-floor front window, highlighted with a post-modern colour scheme. The rhythm of the interior’s open-plan is created by platforms, ceiling drops, customized built-ins, columns and beams. Visual transparency is established with repeated use of glass doors and textured walnut flooring, polished stone on counters and steps, stainless steel on stair risers, appliances and bathroom fixtures, and a glass chandelier.

T.Q. Construction Ltd., 604-430-9900, www.tqconstruction.ca
This 5,000 sq. ft. outdated Vancouver home was in need of an interior renovation. The kitchen was opened up by removing the cumbersome partition to the living room and modernizing the fixtures. The master bedroom and bath were taken from a mediocre finish and transformed into a hip and inviting abode. Energy upgrades include new furnace and radiant heating, and low-energy lighting. This renovation is a great example of how to save the best features of a good house from wasteful disposal and make it even better for years to come.

Port Coquitlam

Shell Busey’s HouseSmart Renovations, 604-431-0321, www.housesmartrenovations.com
When planning their renovation, the homeowners of this 1969 Port Coquitlam home envisioned a West Coast oasis. This project garnered three Gold Georgie Awards in 2006 as well as the Canadian Home Builders’ Association’s National SAM Award for Best Kitchen. From the meandering stream and waterfalls in the backyard to the unique S-shaped island in the kitchen, the home creates a harmonious West Coast feel. The extensive use of natural materials is evident throughout this home, particularly in the beautifully detailed cedar sunroom.

Langley

Shell Busey’s HouseSmart Renovations, 604-431-0321, www.housesmartrenovations.com
Situated on an acre lot, this 35-year-old home underwent an extensive renovation. The open-concept living space now features a new stairway leading up to the spacious dining room and kitchen. The kitchen island, with its black distressed finish, has a raised eating bar in granite. The clear alder floor-to-ceiling cabinetry is finished in a cappuccino stain. In the new garden room, natural light pours in, making it perfect for entertaining or a quiet retreat. The master suite and ensuite boast a two-person soaker tub and large clear glass walled shower.

Surrey

Shell Busey’s HouseSmart Renovations, 604-431-0321, www.housesmartrenovations.com
To accommodate a growing family who did not want to move from their home in a quiet neighbourhood in Surrey, their 20-year-old house was renovated inside and out. To create more living space, an addition was created over the garage, making room for two more bedrooms, a beautiful family bath and an expanded master suite for the parents to call their own. Cherrywood kitchen cabinetry with granite countertops are enhanced by the light coming in from the sunroom. BuiltGreen features and energy-efficient heating, windows and doors were also incorporated into this renovation.

Delta (Tsawwassen)

MP Construction Ltd., 604-816-4276, www.mpconstruction.ca
This 40-year-old rancher has undergone an extensive renovation. With a 200 sq. ft. addition, a new living area floorplan was possible. The former small entrance hall, sunken living room and separate kitchen have been replaced by a single-level spacious and airy greatroom which now features a stunning gourmet kitchen with a large granite island, stainless steel appliances, teak floors, a stone fireplace and vaulted ceilings. A wall of windows opens to the extended patio leading to the pool deck. The new powder and laundry rooms, finished with slate floors, complete this beautiful and functional renovation.

MP Construction Ltd., 604-816-4276, www.mpconstruction.ca
This plain 1960s back-split with carport was completely redone. The exterior details include stone and a large garage. The renovated home has a slate-floor entry leading to a living room with elegant crown moulding and a new fireplace. The small dining room and outdated kitchen have become a gorgeous great room with custom cabinetry, large island, granite countertops, wet bar, media centre and a beautiful hardwood floor, extending throughout the main level. The renovated lower level offers a slate-floored and wainscotted family room which opens to the garden.

White Rock

Shell Busey’s HouseSmart Renovations, 604-431-0321, www.housesmartrenovations.com
This White Rock duplex was too small for the homeowners who wanted to open up the interior space. With new windows, additional French doors and large glass sliders this home now has the open, airy atmosphere the homeowners wanted. Beautiful reclaimed fir flooring, rich maple cabinetry, gorgeous tile work in the baths and myriad fine details throughout have successfully transformed this small house into a warm, comfortable, larger-feeling home without adding square footage. From the expanded entry foyer to the reconfigured living room, this home is an excellent example of creative space planning.

MyMortgageBC.com note: Stop by and see me at the White Rock home 13456 16th Ave. I'll be there all day to help answer any questions you may have.

Mortgage Rates are Going UP

Mortgage rates are on their way up.

Most lenders increased their rates yesterday with a few lenders waiting until today. The best five year fixed mortgage rate will be 5.49%. Inflation is creeping up and there is talk that the Bank of Canada will increase rates.

If you were considering getting pre-approved now is the time. You can lock in the mortgage rate for 120 days.

As a mortgage broker I would be happy to assist you with your mortgage needs.

Why rent when you can own?

If you're in the market for an affordable condo in South Surrey/White Rock area, Southmere may be something to consider. It's an ex rental building that Porte Realty is trying to sell off. It's in an excellent location

They're advertising 1 bedrooms starting at $189,900 and 2 bedrooms starting at $229,900 and all 76 units priced below $249,900.

If you were to qualify for 100% financing for a unit at $189,900 your mortgage payment would be below $1,000 per month. Not bad considering the location.

Canada Mortgage and Housing Corporation: Strong Labour Market Drives Housing Activity

VANCOUVER, BRITISH COLUMBIA -- May 15, 2007 - British Columbia's housing sector will put in an above-average performance in 2007 as job growth keeps demand for homeownership high. Housing starts will ease this year to 34,700 units after reaching 36,443 units in 2006, according to Canada Mortgage and Housing Corporation (CMHC). Although residential construction will decline this year, 2007 will mark the fourth consecutive year in which housing starts exceed 30,000 units. Starts will ease further to 32,300 units in 2008 as mortgage rates rise and employment growth slows.

"Construction activity in the province will continue at above-average levels reflecting solid employment and income growth," said Carol Frketich, BC Regional Economist at CMHC. At a provincial level, multiple-unit housing starts will exceed 20,000 units for the third consecutive year, while single-detached starts will post a larger year-over-year decline. "This trend to denser housing forms is becoming more common in areas outside the Lower Mainland, in response to rising land costs and demand from people looking for alternatives to single-detached homes."

"Employment gains in 2007 have been concentrated in Vancouver, while the rest of the province has posted less than average growth, and this will translate into varying levels of home construction." Among the province's four Census Metropolitan Areas, Vancouver and Abbotsford will see an increase in new home construction this year, while Victoria and Kelowna housing starts will moderate from last year's levels.

CMHC's new report Housing Market Outlook, British Columbia Region Highlights, also includes forecasts for existing home markets. Existing home sales in the province, as measured by the Multiple Listing Service (MLS®), will ease to 94,500 units in 2007 and to 92,000 units in 2008. An increased supply of homes for sale will slow the pace of price growth from the double-digit growth recorded in the last three years. The rate of increase in the average MLS® price will moderate to 8.7 per cent in 2007 and 4.2 per cent in 2008. Of the province's four CMAs, Kelowna will record the largest price increase in 2007.

MyMortgageBC.com note: Although a strong labour market has driven prices up, we've seen housing starts moderate over the last 6 months.

Google for a better mortgage

Google for a better mortgage

When shopping for your mortgage, a computer can be your best friend. There is no better way to start your shopping for your mortgage options than by doing a search. While many people still prefer to do things the old fashioned way with a face to face meeting at their local bank, but for many people the internet has changed the way they shop for a mortgage.

4 reasons to google your way to your next mortgage:

1. Online mortgage rates and easy to find and current. It's easy to compare rates online or to ensure you're getting the best mortgage rate.

2. The best mortgage rates are posted online. Mortgage brokers have access to the best available rates and post them.

3. You can do mortgage shopping anytime. If your banks hours are inconvenient, no problem, the internet is always open.

4. It's easy to find basic information about mortgages, although I highly recommend speaking with a mortgage professional (like myself) before making your final decision.

Is Paying Your Mortgage Bi-Weekly Worth It?

Yes!

Making bi-weekly mortgage payments can be one of the easiest ways to pay down your mortgage faster. Depending on the size of your mortgage, you can usually reduce a 25 year amortization by 4 - 5 years. 4 - 5 years equals huge savings in interest costs.

Another benefit is that you can have your mortgage payments coincide with your bi-weekly payroll deposit and then you never have to worry about being short on that mortgage payment.

Here's an example,

$250,000 mortgage @5.25% 25 year amortization.

Monthly payments $1,490 per month for 25 years

Make bi-weekly payments of $760 and your mortgage will be paid in 21 YEARS.

I feel this is one of the easiest ways to knock a few years off your mortgage without changing your current lifestyle.

Back to Mortgage Basics

As a mortgage broker sometimes I assume everyone knows what a mortgage is. I know, I know it's wrong on my part, but that's why I'm making this entry.

What is a mortgage?

In its simplest terms, when someone lends you money and they hold your house as security that is considered a mortgage.

A few of the reasons why a mortgage can seem complex are as follows,

A) The lender requires you to meet their lending criteria which can require you to provide your whole life story. OK maybe not your whole life story but what you've been up to for the last 2 - 3 years from a financial perspective.

B) You have to negotiate with the seller through a realtor. It's important to have a good realtor for the negotiation process.

C) You have to deal with a lawyer which means fees. Fees are usually below 1k and the lawyer ensures that the title (ownership) of the home is transfered into your name.

D) You often have to get an inspection and appraisal.

There can be many more variables that come into play when obtaining a mortgage and each transaction is different.

Your realtor, lawyer, mortgage broker can all work in unison to make the transaction as straight forward and as easy as possible.