Mortgage Quick Tip

For example, paying an extra $3,000 once every year toward the principle on a $250,000 mortgage can result in interest savings of $42,443 over the life of the mortgage, assuming a 25-year amortization and a fixed rate of 4.19 per cent.

Fixed or a Variable Rate Mortgage?

Vancouver BC, Oct. 23, 2009 (Canada NewsWire) - MyMortgageBC.com

Every homebuyer faces the age-old question of whether to choose a fixed or variable rate mortgage. A new report released today by BMO's Economics Department provides valuable insights to help consumers make the right choice.

"The question of whether to lock in to a longer-term fixed mortgage rate or stay in a variable rate has become an increasingly complex and important issue," said Doug Porter, Deputy Chief Economist, BMO Capital Markets. "Short-term rates are at extreme lows and pressure is likely to build for higher rates in the year ahead."

According to the report, over the past 30 years it has been more cost-effective for borrowers to have a variable rate mortgage 82 per cent of the time. However, under the current environment, Porter points out there are a number of factors to consider before assuming the variable rate is the hands-down winner:

-   Canada has been in a long-term declining rate environment since the
       early 1980s.
   -   The Bank of Canada's overnight rate is now as low as it can go, so
       there is no further downside for variable rates. The surprises can
       only be to the high side from here.
   -   Fixed rates were advantageous during only two recent periods -
       through the late 1970s and in the late 1980s; in both cases ahead of
       a period of rising interest rates, as is the case now.

The Case for Staying Fixed A conventional fixed rate mortgage can mitigate a number of risks. Although inflation hasn't been a problem since 1991, there is a risk of an inflation flare-up as global central banks keep the pedal to the policy metal, and amid record government deficits. The Bank of Canada could be forced to raise interest rates aggressively, driving variable mortgage rates higher, but leaving Canadians with fixed rates unscathed. Plus, fixed rates are currently attractive given that short-term rates are already as low as they can go. The Case for Going Variable

The advantage to a variable rate mortgage is that it has been consistently less costly over time. As well, the current outlook for inflation remains benign, which will likely keep price pressures at bay well into 2011. The soaring Canadian dollar is putting additional downward pressure on prices, reducing the near-term need for the Bank of Canada to raise rates. There is also some risk to locking in as fixed rates could fall if the economy performs worse than anticipated. Even as rates start to rise, Canadians can always lock into a fixed rate at a later date.

The Verdict The decision depends on the individual. For those who don't have a lot of financial flexibility - such as first-time home buyers and those who would run into difficulty from an upswing in interest rates - the moderate extra cost of peace of mind you can get from a fixed rate may be a price worth paying. There is also a reasonable scenario where fixed rates may actually prove to be a cheaper alternative at this point. However, BMO Economics' core view is that the most likely economic and interest rate outlook will ultimately again slightly favour the variable rate option. That's particularly the case given the variable rates being offered, such as BMO's current rate of 2.25 per cent for a five-year variable mortgage.

"The most important thing a current or first time homeowner can do is talk to a knowledgeable mortgage expert about their situation and make decisions based on their stage in life and their particular circumstances," said Jane Yuen, Senior Manager, Mortgages, BMO Bank of Montreal. "So come in to a branch or contact a mortgage expert to decide on the type of mortgage that is best for you at this point in your life."

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

www.MortgageEdgeBC.com

www.BrentIrving.ca

Interest Rate Forecast

When the Bank of Canada does start raising its key policy interest rate in either late 2010 or early 2011, Canadians should brace for “aggressive” increases of up to a percentage point at a time, says a report from the Chief Economist at Laurentian Bank Securities.

The call, from Carlos Leitao, adds a new wrinkle to the debate as to whether the central bank will be able to keep its pledge to leave its key policy rate at 0.25%, or the lowest level possible, until June 2010 in an effort to stimulate the economy. This analysis kicks off a debate in terms of how aggressively the central bank needs to act once it believes rate increases are in order.

The Montreal-based economist said he believes Mark Carney, the Bank of Canada Governor, will be able to keep his June 2010 promise, based on the amount of spare capacity in the economy and continuing job losses that are likely to peak early next year. The Bank of Canada is likely to begin hiking rates after unemployment peaks (in early 2010) and before inflation hits the preferred 2% target (sometime in mid-2011). Once that period comes, Canadians should prepare for steep rate hikes.

“An aggressive tightening – rather than a gradual one – will be necessary because rates are extremely low,” Leitao said in LBS’s weekly note to clients last week. “A ‘measured pace’ would not be appropriate to ‘normalize’ rates when the starting point is virtually zero.” – Financial Post

The Bank of Canada indicated Thursday it has become more confident about the economic recovery in this country and abroad, adding growth in Canada in the second half of this year could exceed previous expectations.

But the central bank warned “persistent strength” in the Canadian dollar remained a risk to growth, and it retained “considerable flexibility” through monetary policy to deal with a high-flying currency if necessary.

The upwardly revised outlook was delivered in the Bank of Canada’s latest interest-rate statement, in which it, as widely expected, left its benchmark rate unchanged at 0.25% and said the rate is expected to remain at that level until June 2010, pending the outlook on inflation.

In its last statement in July, the central bank said a number of factors, from aggressive monetary and fiscal policies to improved financial conditions, were spurring an uptick in domestic demand, but added that a recovery was “nascent”. – Financial Post

Buying a Home Versus Renting a Home

Buying a Home Versus Renting a Home

At some point in their lives, most Canadians have probably asked themselves whether it is better to buy or rent a home. And purchasing a home is one of the biggest decisions most people ever make.

Ultimately, the decision is a personal choice, but it helps to look at the pros and cons of buying to determine whether home ownership is right for you.

Some advantages of buying a home

Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family.

Each month when you make your mortgage payment, you are building equity in your home. Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender.

At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. But the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate.

Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster. Some prepayment privileges, for instance, enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money. You should always consult a mortgage broker when considering getting a mortgage.

There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate – or increase in value – as time passes, building more equity. As you build up equity, it’s usually easier to upgrade to a more expensive home in the future thanks to the profit you’ll make when selling your current home.

As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can offer you and your family stronger ties to the community.

If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams. Since we’re currently in a buyer’s real estate market and interest rates have been dropping, now may be an ideal time to enter into home ownership for the first time.

Some disadvantages of buying a home

Since it’s easy to get caught up in the excitement of buying a home, it’s important to remember that home ownership has some additional responsibilities as well.

For one thing, a home can be expensive. Chances are, your monthly payments will be more than what you are currently paying in rent when you factor in such things as your mortgage, property taxes, repairs and general maintenance.

Owning a home ties up some of your cash flow and is likely to reduce your flexibility to move to a new location or change jobs. While your home might increase in value as time goes by, don’t expect to get a big return quickly.

There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees, and moving, renovation and other selling costs.

Real estate is, however, usually considered a good investment over the long term. When making the decision about whether to buy or rent, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership but, ultimately, it’s a personal decision based on your own priorities.

If you’re thinking of buying your first home, as a mortgage professionals I can answer all of your mortgage-related questions.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

www.MyMortgageBC.com

www.BrentIrving.ca

Update on Mortgage Rates

This edition of Weekly Rate Minder has the latest, best rates for
Canadian mortgages. At Dominion Lending Centres, we work on your
behalf to find the mortgage that suits your needs. Best of all our service
is "free".* It's the selected lender that pays us and YOU
get the best rate. *(O.A.C., E.&O.E.)
>
Our Best Rates
Explore Mortgage Scenarios with Helpful Calculators on
http://www.BrentIrving.ca

TERMS BANK RATES OUR RATES
> 6 Month 4.60% 3.95%
> 1 YEAR 3.75% 2.75%
> 2 YEARS 4.05% 3.05%
> 3 YEARS 4.65% 3.59%
> 4 YEARS 5.14% 4.89%
> 5 YEARS 5.85% 4.19%
> 7 YEARS 6.80% 5.35%
> 10 YEARS 6.90% 5.25%
Rates are subject to change without notice. *OAC E&OE

PRIME RATE IS 2.25%
VARIABLE RATE MORTGAGES FROM AS LOW AS PRIME + .30%

Please note that rates shown above are subject to change without
notice. The rates shown are posted rates and the actual rate you
receive may be different, depending upon your personal financial
situation. Check with your Dominion Lending Centres Mortgage
Professional for full details and to determine what rate will be
available for you.

*O.A.C., E.& O.E.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

* We are Canada's premier online mortgage lender, and one of the
fastest growing mortgage companies nationwide!
* Our Brokers are Experts in their field and many are ranked amongst
the best nationally.
* We close loans in all 10 provinces and 3 territories.
* We can process your mortgage in as few as 7 days.
* We have more than 100 mortgage programs making it easy to choose
the best fit for your situation.
* We are the preferred mortgage lender for several of Canada's top
companies.
* Dominion Lending Centres' Mortgage Experts are available anytime,
anywhere, evenings and weekends; we'll even come to you!

Mortgage Rate Prediction Update

BC Real Estate Association’s latest Mortgage Update issued in mid-June

“You just might find the answer to: Where do we go after hitting bottom? BCREA anticipates rock-bottom mortgage rates should move up in the quarters ahead—particularly for longer fixed term mortgages. BCREA is predicting a cumulative rate increase of 75 basis-points by the end of 2010 as economic prospects improve and global interest rates rise from record lows. The report indicates that inflation in Canada, although expected to remain relatively low, will start to rise resulting in a modest increase in medium term interest rates.”

As a mortgage broker in Vancouver BC I don't feel that the BCREA's prediction that fixed mortgage rates will rise in the upcoming quarters is very bold. We're regressing back to the mean from all time low mortgage rates.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

Web: www.BrentIrving.ca

Web: MyMortgageBC.com

Mortgage brokers do the work for you

How does a mortgage broker do it and how they charge for their services

Why should I use a mortgage broker? It's a question I hear often. It's a fair question and hopefully I'll help shed some light on the benefits.

In Canada, about 30% - 35% per cent of all mortgages are done through mortgage brokers. In the US and Europe the figure is closer to 75%.

Unfortunately, in Canada, most people go about getting their mortgage by walking into their local bank and filling out the paperwork and often think they've just received the best deal.

Often that best deal is for the bank, and not you. When you go to your local bank, you'll be shown the mortgages products only offered by your bank. With the large number of lenders and vast array of mortgage options available today, just walking into your bank is a strategy that just doesn't make sense anymore. If you don't work with a qualified mortgage broker you'll never know what other mortgage options are available. As a mortgage broker, I with the major banks and also lenders that specialize in mortgage lending which also offer different types of mortgage products. With all these options available to you utilizing a mortgage broker's resources, you can be assured that you'll receive the best rates and mortgage products to match your individual credit and financial situation. In days gone by, it was thought only those who had poor credit ratings sought the help of a mortgage broker to obtain a home loan which is no longer the case. Today's mortgage borrower realizes that using the services of a mortgage broker will not only save them time and aggravation, but in most cases will save them a substantial amount of money throughout the term of their mortgage. Mortgage brokers can work with borrowers of all credit types and specialize in finding a mortgage of any size and type on any given day. A service I also offer to my clients as a mortgage broker is that I'll work with my clients on credit issues to improve their ability to obtain financing. They connect you to a lender and help you navigate through the steps the lender requires of you as well. You are better off going through a mortgage broker and letting them do the legwork to find you the best deal available. We're an advocate on your side during the mortgage borrowing process.

One of the great things about dealing with a mortgage broker (like myself) is that we will be happy to take whatever time is necessary for you to understand all the options and requirements for mortgages and the home buying process. The mortgage broker's experience will be able to identify the positives and negatives associated with all the mortgage options available to you. The mortgage broker is a negotiator and will make your case to the appropriate lenders if your situation should contain some financial or credit challenges. In most cases, the mortgage broker's negotiations will result in better terms or rates for those in situations that leave them not up to bank quality. In most cases a mortgage broker does not cost you money and is paid by the lender. In some cases where he/she has to go to a private lender, or a lender who does not provide compensation for the mortgage broker's service, payment is made by clients and taken out of the mortgage's proceeds. If the mortgage broker ever charges a fee it should be disclosed early in the process so there are no surprises.

Mortgage brokers build their business on referrals, providing personalized service and education to their clients, which larger banks are simply unable to provide. Because of this, you can rest assured that your mortgage broker has your best interests in mind with everything they do. Most mortgage brokers will work with you and your schedule. We know how busy you are without the added inconvenience of a 9 a.m. to 5 p.m. window to get mortgage advice. If you can't come to the mortgage broker, the mortgage broker will come to you.

By providing you with "one-stop shopping," a mortgage broker can get you a good deal and educate you along the way. If you are looking for a mortgage, discuss your needs with a mortgage broker and see what kind of deal they can offer you -- you might be pleasantly surprised at the results.

So let's recap. Who should use the services of a mortgage broker? Everyone from the investor looking to use the equity in their home for further investments, to the self entrepreneur who needs someone to understand what running a business is all about and the financial challenges that go with it. The first-time homebuyer will find a wealth of information and mortgage products through a mortgage broker. Such buyers will find options like purchasing with no down payment, cashback mortgages -- and even debt consolidation programs which will enable a purchase in the near future.

Contact me anytime and see why more and more people have discovered that using a mortgage broker just makes sense.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

Web: www.BrentIrving.ca

Web: MyMortgageBC.com

Merix Financial's 50/50 Wise Mortgage

There's a new mortgage product on the market.

Merix Financial has launched a new mortgage product in Canada called the 50/50 “Wise” Mortgage, which enables borrowers to lock in half of their mortgage at a five-year fixed rate and the remaining half at a five-year variable rate. This is an excellent way to diversify your mortgage debt the same way you would diversify your investments such as your RSP. It's an excellent way to get the best of both a variable rate and a fixed rate mortgage.

The product is suited to a variety of borrowers including:

• Clients who would normally go fully variable but are afraid prime rate is at its bottom.
• Those who aren’t comfortable being locked into a fully fixed rate.
• Clients who can’t decide between a fixed or variable mortgage.

Each portion of Merix’s 50/50 Mortgage operates independently – like two separate mortgages – yet the product is registered as only one charge.

Benefits include:

• 20% annual lump-sum pre-payment privileges
• 20% annual payment increase ability
• Portability
• The option to lock in the variable-rate portion at any time
• A 120-day rate hold on purchases (60 days on refinances)
• Up to a 35-year amortization (the minimum is 20 years)

No switches or transfers are permitted and there are no pre-approvals. Other conditions apply as well so be sure to call.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

Web: www.BrentIrving.ca

Web: MyMortgageBC.com

Tips To Keep In Mind Between Mortgage Approval and Mortgage Funding

In light of the current market and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late, keep in mind that now – more than ever – it’s important to be careful what you do between the time your mortgage is approved and when it funds. A few mortgage lenders and insurers have been doing something lately that they have not done in a long time, and that is pull new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

1. Don’t buy a new car or trade-up to a more expensive lease.
2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, give me a call and I can let you know if this may jeopardize your approval.
3. Don’t change industries, decide to become self-employed or accept a contract position even if it is within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.
4. Don’t transfer large sums of money around between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.
5. Don’t forget to pay your bills, even ones that you are disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!
6. Don’t open new credit cards. Again, just wait until after your funding date.
7. Don’t accept a cash gift without properly documenting with me – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give me a call before you deposit it.
8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding. Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure!

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca
Web: www.BrentIrving.ca

Web: MyMortgageBC.com

What is an Interest Rate Differential Penalty or IRD

With interest rates at all time lows many homeowners are wondering if it may be a good idea to refinance their mortgage and are surprised at the size of the penalty they have to pay. These large penalties charged by your bank are because of mortgage penalty calculation call IRD. Most mortgage lenders charge a penalty which is either 3 months interest or an Interest Rate Differential whichever is greater.

What Does Interest Rate Differential - IRD Mean?
A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on the current market exchange rate futures contracts.

Investopedia explains Interest Rate Differential - IRD
The IRD is a key component of the carry trade. For example, say an investor borrows US$1,000 and converts the funds into British pounds, allowing the investor to purchase a British bond. If the purchased bond yields 7% while the equivalent U.S. bond yields 3%, then the IRD equals 4% (7-3%). The IRD is the amount the investor can expect to profit using a carry trade. This profit is ensured only if the exchange rate between dollars and pounds remains constant.

WHAT DOES THIS MEAN FOR ME AND MY MORTGAGE?

This usually means the difference between the interest rate on your mortgage contract compared to the rate at which the lending institution can re-lend the money.

For example:

-If your mortgage has a balance of $125,000 at 9.25%,

you have 2 years left to go and the current 2 year mortgage rate is 6.25%.

-Then the lending institution will probably charge you -

$125,000 X 24 months X 3% (9.25 - 6.25) = $7,266.21

However, just to further confuse the issue, the penalty above has not been present valued. This is when a lender charges a lower penalty because you are paying all of the ‘extra’ interest (in the example 3%) now, not over the remaining term. Some lenders present value, other lenders do not.

Home Buyer Plan RRSP Withdrawal Limit Increase!

SUMMARY

The 2009 Federal Budget introduced the following changes affecting Retirement Savings Plans (RSP):

• The Home Buyers’ Plan (HBP) maximum withdrawal limit has been increased to $25,000 from $20,000 for withdrawals made after January 27, 2009.

ADDITIONAL INFORMATION

How much can I withdraw from my RRSP under the HBP?

For withdrawals made after January 27, 2009, the maximum amount that you can withdraw from your RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $25,000.

If I withdrew $20,000 from my RRSP under the HBP after December 31, 2008, but on or before January 27, 2009, can I withdraw an additional $5,000 from my RRSP?

Yes, you can withdraw additional funds, as long as the total of all your withdrawals does not exceed the new maximum amount of $25,000. However, under existing requirements, neither you nor your spouse or common-law partner can own the qualifying home for more than 30 days before making the final withdrawal.

Scotiabank offers a 10 year Fixed Rate Mortgage Special

Scotiabank offers a 10 year Fixed Rate Mortgage Special

Vancouver, Mar 6, 2009 (My Mortgage BC) -- -- Scotiabank today announced a reduction to 5.25 per cent from 7.15 per cent in the interest rate for the Bank's 10-year fixed rate, closed term mortgage. The pricing change - effective today - gives homeowners an opportunity to benefit from historically low interest rates.

"This is the perfect solution for customers who are looking for long-term interest rate comfort," said Charles Lambert, Managing Director, Mortgages, Scotiabank. "Prudent customers can now complement their borrowing strategies with plans to be mortgage free within 10 years."

Scotiabank, which offers a full suite of competitive mortgage products, including the popular Scotia Total Equity Plan (STEP), also announced a rate reduction to 3.25 per cent from 5.25 per cent for the Bank's Save Now, Save Later product, a one-year fixed rate, closed term mortgage.

Scotiabank's new 10-year offer reflects the Canada Mortgage and Housing Corporation's (CMHC's) recent expansion of the Canada Mortgage Bonds Program. CMHC introduced the Canada Mortgage Bonds (CMB) program in 2001. It was expanded to include 10-year CMBs in July 2008. The program's objective is to benefit homebuyers and the housing industry by improving access to lower-cost mortgages.

If you are interested in obtaining more information on Scotiabanks 10 year fixed rate mortgage special please don't hesitate to contact me. If you would like to learn more about me and my services please visit Dominion Lending Centres

Proposed Changes for First Time Home Buyers

Home Buyers Plan: Starting January 28, 2009, first time Home buyers can withdraw up to $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home with out incurring the tax. This limit has been increased from $20,000. For the purpose of the Home Buyers Plan, an individual is considered a first time home buyer if neither the individual or his/her spouse owned and lived in another home in the calendar year of the withdrawal or in any of the four preceding calendar years.

First Time Home Buyers Credit: A tax credit of $5000 has been introduced for first time home buyers that purchase a home after January 27, 2009. The credit for the taxation year will be calculated by reference of the lowest personal tax rate for the year the claim is made. A first time home buyer for the purpose of this credit is an individual that has neither owned or lived or his/her spouse has owned and lived in another home in the calendar year of the claim or in any of the four preceding calendar year.

If you would like to pre-approved to purchase your first house please don't hesitate to contact me at 604-764-6336. I'm a long term mortgage broker working with Dominion Lending Centres.

15th annual free seminar for first-time home buyers

15th annual free seminar for first-time home buyers

Vancouver-area young people are eager to purchase their first homes, but many need help to de-mystify the process. They have lots of questions. How can I be safe purchasing a condo before construction starts? What location is best? What type of home is best matched to my needs and financial resources? What are the mortgage options? What are the legal considerations? How do I benefit from builder licensing and mandatory home warranties?

These and other key questions will be answered by a panel of housing experts at the 14th Annual Seminar for First-time Home Buyers, presented by the Greater Vancouver Home Builders' Association (GVHBA) on Tuesday, March 24 from 7 p.m. to 9 p.m. in the Guildford Sheraton Hotel Ballroom, 15269 104 Avenue, Surrey.

Admission to the popular seminar is free thanks to sponsorships.

Speakers will be determined soon and GVHBA Chief Executive Officer Peter Simpson will be the seminar moderator.

"Our experts will help first-time buyers complete their homework by investigating all available options and issues before they take that crucial first step onto the property ladder,” said Simpson.

"More than 800 people attended last year’s seminar and, because real estate is still a hot topic, including the pre-construction buying process for condominiums, we expect a similar attendance this year. Doors open at 6 p.m., allowing attendees ample time to view displays of new homes, financial choices, warranties and other housing-related products and services," said Simpson.

Pre-registration is required. Call 604-588-5036 from 8:30 a.m. to 5 p.m. Monday to Friday. Registrations will also be taken by answering machine at the same phone number on weekends.

At MyMortgageBC.com we are experts in helping first time home buyers obtain low rate mortgages at no charge. Please contact us at 604-764-6336 for any questions you have about obtaining a low rate mortgage.

Homeowners in line for 15% rebate on renos

Homeowners in line for 15% rebate on renos

Vancouver BC -- Canadians who want to sod their lawns or renovate their bathrooms will get a tax break worth up to $1,350 as a key plank of the government's effort to inspire spending.

For a certain sector of consumers, 2009 could become the year of the reno, following the announcement Tuesday of a Home Renovation Tax Credit Tax Credit that lets taxpayers claim 15% of their fixups until Feb. 1, 2010.

"The HRTC will provide a temporary incentive for Canadians to undertake new renovation projects or accelerate planned future projects," the budget documents said, "thus providing timely stimulus to the Canadian economy while boosting energy efficiency and the value of Canada's housing stock."

The government said the incentive is expected to provide about $3-billion in tax relief to some 4.6 million families.

The credit, which is available for homes and cottages effective immediately, is designed to boost construction, forestry and other industries.

Taxpayers can claim renovations on their 2009 tax returns on costs over $1,000, but not exceeding $10,000.

The home renovation program would appear to involve considerably less red tape than some existing initiatives that encourage investment in the home. Programs that involve rebates for investment in the energy efficiency of a house, for example, require a government auditor to approve the changes made to a home to ensure energy efficiencies have been realized.

The HRTC, however, simply requires homeowners to apply for the tax credit, directly on their income-tax returns. The only demand is that the taxpayer save the appropriate receipts in case of a future audit by Revenue Canada.

It also, though, means contractors will have to produce invoices for jobs such as backyard landscaping or basement refinishing -- work that Finance officials yesterday noted is often conducted on a cash basis, with no paperwork produced.

The list of eligible expenses includes renovating kitchens, bathrooms or basements; new carpeting or flooring; building additions, decks, or retaining walls; installing furnaces or water heaters; interior and exterior painting; or driveway resurfacing.

Routine maintenance does not qualify. Such things as new furniture, appliances, tools, carpet cleaning and snow removal are excluded.

Also on the home front, the government will put an extra $300-million over two years into energy retrofits, raise to $25,000 the amount first-time homebuyers can borrow from RRSPs, and provide up to $750 in tax relief to help with their purchases.

I'm a mortgage broker located in the Vancouver area of British Columbia. I have over 20 years in the Financial industry and work for Dominion Lending Centres. Please don't hesitate to contact me at birving@dominionlending.ca or give me a call for all of your mortgage needs.

Current Mortgage Rates

Thanks to all of the visitors to my blog.

Canadian Mortgage Rate Update
Bank of Canada meets on January 22 and it will be interesting to see what happens to the Prime Rate. Everything I've indicates to a lower Prime Rate.

The Bank Prime Rate is currently 3.50%.

Best Fixed Mortgage Rates:

1 Year Fixed 3.89%
2 Year Fixed 4.59%
3 Year Fixed 4.85%
4 Year Fixed 4.89%
5 Year Fixed 5.79%**
7 Year Fixed 6.20%
10 Year Fixed 6.25%

5 Year Rate Special 5.79% .

Best variable rate is Prime +.60%

*rates are always subject to change without notice. I'll always do my best to get you the mortgage rate available.

MyMortgageBC.com is a mortgage broker located in Vancouver, BC. If you would like the best mortgage rate, or have any questions regarding the mortgage process you should give us a call at 604-764-6336. I work with Dominion Lending Centres which is one of Canada's largest mortgage broker companies.

Is Your Property Value Poised To Go Up?

Property markets are not national – they are regional, local and can even vary widely from neighbourhood to neighbourhood in the same city. That being said, there will always be hot real estate markets.

The following 12 questions will help you decide if your area and personal property values are poised to go up. The more “Yes” answers you get, the better the market will perform.

12 Key Questions:

1. Is your area’s average income increasing faster than the provincial average?
2. Is your area’s population growing faster than the provincial average?
3. Is your area creating jobs faster than the provincial average?
4. Does your area have more than one major employer?
5. Is real estate booming in the surrounding region more than where you’re looking?
6. Will the property values benefit from a major new development nearby?
7. Has the local and provincial political leadership created a growth atmosphere?
8. Is the region’s economic development office helpful and proactive?
9. Is the neighbourhood located in an area of renewal or gentrification?
10. Is there a major transportation improvement occurring nearby?
11. Is the area attractive to Baby Boomers?
12. Is there a short-term perceived problem (such as negative stories or short-term layoffs) that will disappear?

Overall, the Canadian economy and real estate are relatively well-positioned to withstand the economic storms that are battering property values in many other countries.