MyMortgageBC.com

Mortgage Quick Tip

2009-11-05T10:15:00.000-08:00

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?

2009-10-23T12:20:00.000-07:00

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

2009-09-16T17:20:00.000-07:00

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

2009-08-10T10:45:00.000-07:00

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

2009-07-14T15:37:00.000-07:00

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

2009-07-08T14:49:00.000-07:00

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

2009-07-07T14:38:00.000-07:00

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

2009-06-16T11:41:00.000-07:00

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

2009-05-22T19:33:00.000-07:00

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:

Don’t buy a new car or trade-up to a more expensive lease.
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.
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.
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.
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!
Don’t open new credit cards. Again, just wait until after your funding date.
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.
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

2009-04-25T10:11:00.001-07:00

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!

2009-03-22T14:08:00.000-07:00

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

2009-03-09T14:00:00.000-07:00

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

2009-02-18T14:22:00.000-08:00

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

2009-02-18T14:19:00.000-08:00

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

2009-01-28T16:41:00.000-08:00

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

2009-01-13T15:32:00.000-08:00

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?

2009-01-06T19:21:00.000-08:00

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:

Is your area’s average income increasing faster than the provincial average?
Is your area’s population growing faster than the provincial average?
Is your area creating jobs faster than the provincial average?
Does your area have more than one major employer?
Is real estate booming in the surrounding region more than where you’re looking?
Will the property values benefit from a major new development nearby?
Has the local and provincial political leadership created a growth atmosphere?
Is the region’s economic development office helpful and proactive?
Is the neighbourhood located in an area of renewal or gentrification?
Is there a major transportation improvement occurring nearby?
Is the area attractive to Baby Boomers?
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.

Save Thousands on Your Existing Mortgage

2008-12-15T20:02:00.000-08:00

Save Thousands on Your Existing Mortgage

A family was recently referred to me because they wanted to reduce the interest they were paying on thier mortgage. When they took out his mortgage a couple of years ago his rate was reasonably competitive but with the recent drop in rates he thought he may be able to do a little better. In this particular circumstance my clients weren't concerned about lowering the monthly payment but reducing his total interest paid over the next 5 years. On my clients $240,000 mortgage if they kept the monthly payment the same but took the new lower mortgage rate they saved over $8,000 and as an added bonus reduced the mortgage amortization. The difference between the existing mortgage rate and the new rate was only .75% (3/4 of a percent) and it SAVED them $8000. This was all done no charge to my clients and as always, I was happy to walk the clients through the entire process to make it as painless as possible. If you would like, contact me and I would be happy to do a mortgage analysis to see if I can save you thousands as well.

I'm a fully qualified mortgage broker with Dominion Lending Centres. I spend 100% of my time giving you world class service...guaranteed! I will give you such extraordinary service that you would gladly refer your friends, family neighbors and coworkers to me for their home loan needs. With your help I am able to build strong, lifelong relationships, one person at a time. My goal is to be your mortgage lender for life! Please contact me with any comments or to see how much you can save.

Making sense of today’s housing market

2008-12-05T17:08:00.000-08:00

Making sense of today’s housing market

In recent months, economists have had the unenviable task of trying to calculate the direction the housing market is likely to take, factoring in things like unemployment rates, population and immigration figures, economic growth, mortgage rates, and that most nebulous of criteria: consumer confidence.

They agree that the decrease in housing sales and prices bears little relation to the economic indicators in BC. What has changed is public perception of our financial security, triggered by the troubled global financial markets.

As realtors, people are asking us to help make sense of the housing market.

Sellers are asking if the market value of their home is decreasing. Buyers want to know if they should wait for further price reductions. Homeowners not in the market to buy or sell want to understand the impact on their equity, which may affect decisions like plans for renovations.

Investors are asking about short-term impact – is it a good time to buy, renovate, and re-sell for a profit? And long-term impact – is quality real estate now available at lower prices?

First-time buyers want to know how much they need for a down-payment, whether they can afford the monthly mortgage payment, and if they can get financing in these uncertain times.

There are no easy answers. Around the Lower Mainland’s kitchen tables, realtors are helping people assess their individual situations.

Circumstances cause each of us to make decisions despite uncertainties related to global economies and politics. Someone gets a job in another city. A family must consider estate planning for a parent. A young couple wants to start investing in their own home, rather than renting.

Our MLS® statistics and Housing Price Index (HPI) tell us that, since May, residential home sales and prices have been decreasing. After five years of unprecedented growth in home values in the Lower Mainland, that’s not particularly surprising or necessarily unwelcome.

Between 2003 and 2008, the HPI benchmark price of a detached home in Greater Vancouver increased nearly 70 per cent to $761,000 from $449,000. Condominiums over the same period increased 82 per cent to $387,000 from $213,000. Left unchecked at this rate, by 2013 the benchmark price of a detached home would top $1.2 million and condos more than $700,000.

Current trends offer moderation to a market where affordability, for much of this decade, was eroding, making home ownership unattainable to an expanding segment of our community.

Since May, residential home prices have declined 12.8 per cent, resulting in an 8.3 per cent year-to-date price reduction for detached, attached and apartment properties across Greater Vancouver.

These moderating home prices should not be confused with the U.S. housing downturn. Since 2005, prices in the U.S. have been edging downward due in large part to imprudent ‘sub-prime’ lending practices. Mortgages in Canada are tightly regulated and underpinned by a solid banking structure. The World Economic Forum recently identified Canada as having the world's “soundest” banking system.

The local real estate market is not immune to global economic challenges; however, Canada’s disciplined lending structure has kept the mortgage landscape steady in these uncertain times.

While the current rate of foreclosures in the U.S. is nearly five per cent, only 0.28 per cent of mortgages in Canada are in arrears, a proportion that is not only low but steady, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP).

Low prices are not the concern as much as the view that prices are falling. Buyers are waiting to see of the real estate market has hit bottom.

Identifying the “bottom” of a market is difficult, given that certain variables must remain constant to attain real savings. For example, interest rates must remain low and that perfect house must remain available at an acceptable price.

Most of us sell a home and buy a home within the same market; while we may be selling at a lower price, we’re also buying within that lower-priced market.

Deciding to buy or sell a home should be a milestone moment based on your financial and personal circumstances, and the market conditions within your neighbourhood of choice. For those whose finances allow it, there are excellent opportunities in today’s housing market. This is a good market for long-term investors.

The Real Estate Board of Greater Vancouver has existed for nearly 90 years and witnessed numerous market cycles. Sales increase and decrease. Prices go up and down. Historically, the values at the peak of the next cycle inevitably surpass the ones before.

(Dave Watt, president of the Real Estate Board of Greater Vancouver)

I hope you found the above article informative. I'm a mortgage broker located in Vancouver BC working with one of Canada's largest brokerage houses Dominion Lending Centres.

5 Key Ways to Help Improve Your Credit Score

2008-12-02T10:57:00.000-08:00

5 Key Ways to Help Improve Your Credit Score

Leading up to the holidays is the perfect time to think about things like improving your credit score and consolidating debt. After all, the holidays are a joyous time that should not be overshadowed by financial woes. And even if your credit score is good, these tips may make it even better. After all, the better your credit score, the fewer hurdles you’ll have to overcome when looking to renew or refinance your existing mortgage, or obtain a new one. Nowadays having good credit is as important as ever. Very few lenders are interested in making exceptions for people that have had credit challenges.

Following are five steps to a speedy credit score boost:

1) Pay down your credit cards. The number one way to increase your score is to pay down your cards to 30% of their limits. Revolving credit like credit cards seems to have a more significant impact on your score than car loans, lines of credit, and so on. Lenders will often use the term credit utilization.

By paying down your cards to 30%, you are leaving a big gap between what your limit is and what you owe – a move that is very favourable to increasing your credit score.

2) Limit the use of your cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you paid it all off the next month.

By being more accountable of your spending on a daily or weekly basis through the use of a budget, you can keep those cards below the magic 30% mark.

3) Check your limits. If your lender is slow to report your monthly transactions, this can have a big impact on how another lender may view your file. Make sure everything is up to date. Old bills that have been paid can come back to haunt you.

Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring formula that you’re regularly maxing out that card.

You could go on a wild spending spree to raise the limit, but a more sensible solution would simply be to pay your balance down or off before your statement period closes.

When making payments online, do so about a week before the period closing date printed on your latest statement to ensure the payment is received on time – it can take up to five business days for a payment to be received. This won’t raise your reported limit, but it will widen the gap between your limit and your closing balance, which should boost your score.

4) Keep your old cards. Older credit is better credit. If you stop using those older credit cards, the issuers may stop updating your accounts. As such, they will lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the card for a long time. Use these cards periodically and then pay them off.

5) Don’t let mistakes build up. Dispute any mistakes or situations that may harm your score. If, for instance, your cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

As always, if you want to talk about your credit score or consolidating debt, I’m here to help. I'm a mortgage broker located in Vancouver BC working for Dominion Lending Centres.

3 Tips to Compare Adjustable Rate Mortgages for the Best Deal Possible

2008-12-01T12:45:00.000-08:00

3 Tips to Compare Adjustable Rate
Mortgages for the Best Deal Possible

In the last couple of years, adjustable (or variable) rate mortgages have become more popular in Canada, as well as with our neighbors down south in the United States. An adjustable rate mortgage can be a wonderful money-saving option. However, comparing multiple loans to each other can be a bit complicated to do.

While a traditional fixed-rate mortgage can easily be compared to another fixed-rate mortgage, the process becomes a bit trickier when you are dealing with multiple adjustable rate mortgages. Adjustable rate mortgages (ARMs) came in many forms and with many different options. The choice you have to make between ARM mortgage options can make for a very large difference in the quality, and cost, of the loan which you ultimately accept. So, it is important to be able to compare them to each other to make the best decision you possibly can. .

Most people have two basic issues when they try to compare two ARMs; the math to calculate the effective prime discount is not simple, and understanding what all of the various different options mean. No matter which lenders you are working with, there are three things you should first understand and keep in mind throughout the process. They are:

Understand Low Introductory “Teaser” Rates and Mortgage Costs.

The first thing you need to understand is how much a particular loan will cost you between the time you sign on the dotted line, and the time when the mortgage becomes open or renews.

To easily determine the cost of a mortgage until it becomes open or renews, you can multiply the introductory rate of the loan by the number or months it will be effective. Then multiply the interest rate of the loan after the introductory period by the number of months until the mortgage opens or renews. Add these two numbers together and divide by the total number of months the mortgage will be in effect before it opens or renews. This gives you a weighted average calculation and allows you to easily compare one ARM to another.

Understand Rate Discounts and Conversion Options.

Many people go into an adjustable rate mortgage assuming that they can easily convert to a closed term mortgage without any penalty, whenever they choose to. However, it is vitally important that you know exactly what the rate discount will be if you choose to convert. You may find that it costs you more than three month’s worth of interest to switch lenders and forces you to stay with the lender you currently have. If this is the case, then you will not be able to change lenders until your mortgage becomes open or renews without significant cost.

Understand How Interest Rate Changes Will Affect Your Payments.

There are currently two popular options with ARMs. The first type of ARM has payments which adjust as the prime interest rate moves up and down. This means that your amount due each month is constantly changing with the prime rate. This can be a good deal if rates drop and you can stomach the constant change. However, if you need stability in your payments from month-to-month, then this is probably not the best option for you to choose.

The second type of ARM keeps the payments the same each month but changes the amount applied to principle and interest based on the prime rate. For example, when the prime rate goes up then your payment applies more to interest than to principle. This means it could ultimately take longer to pay off your mortgage because you are paying less on principle each month if the prime rate is high.

Adjustable rate mortgages can be great alternatives to traditional closed-term mortgages. However, when you are evaluating your choices in an adjustable rate mortgages it makes a lot of sense to take the time to learn about, and understand, introductory teaser rates, discounts and conversion rates, and how the prime rate will affect your mortgage payments and ultimate payoff time. Once you fully understand what ARMs are all about, and which options best suit your situation.

As a mortgage broker I can help you get the best adjustable rate available. I work with one of Canada's largest mortgage brokerage firms Dominion Lending Centres Leading Edge.

The Best Asking Price for your Home

2008-11-21T13:56:00.000-08:00

The Best Asking Price for your Home

In market like we're in now the most important thing when selling your house within a reasonable time frame is starting at the right price. Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar. When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price, and that there will be competing offers (although, not very common in this market)—which may net you even more in the long run.

Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value. About three-quarters of homes on the market today are 5-10 % overpriced. Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive. At the other end of the selling spectrum are houses that are priced below a fair market value. Under-pricing often occurs when the owner is interested in a quick sell. You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

The knowledge and skills of an experienced Realtor will be invaluable when determining an appropriate asking price. It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular area. Based on this range of connections and knowledge, your Realtor should counsel you on how to price your home properly in order to attract the highest price possible, in the shortest period of time. Before approaching this process, you should first do some homework yourself. You’ll need to know the workings of the current market before you even begin to think about setting an asking price. The market will always influence a property’s value, regardless of the state of a home, or its desirability.

Here are the types of market conditions and how they may affect you:

Seller’s Market: A Seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. Many homes will sell above the asking price.

Buyer’s Market: A Buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer.

Balanced Market: In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers. When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all. Remember, a Realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible.

The right Realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. Evaluate your house in the other main areas that affect market value:

Location: The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market. Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change.

Property: The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion and landscaping of the yard. Condition of the Home: This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

Comparable Properties: Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.

Market Conditions/ Economy: The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

We are Mortgage Brokers located in Vancouver British Columbia and are happy to answer any questions you may have regarding the home buying and selling process.

Is 100% Financing Still Available?

2008-11-18T09:57:00.000-08:00

In an article dated November 11, 2008 in the Vancouver Sun they point out 3 ways that you can avoid having to meet the Federal Governments minimum requirement of a 5% down payment on a property purchase.

The 3 basic ways in the Vancouver Sun article in which you can avoid the 5% down payment are in the are as follows;

Wells Fargo still offers 100% financing because they self insure their mortgages. Wells Fargo 100% financing mortgages are available through mortgage brokers such as myself.

Borrow the 5% from credit cards or lines of credits. There is more to it than simply borrowing from a line of credit or existing credit card. You need to make sure you get proper advice before simply borrowing for the down payment and are aware of the specific rules set out by mortgage insurers before considering this mortgage option.

Borrow the 5% from a friend or family member and then take a cashback mortgage and pay them back. There are significant costs to a cashback mortgage that you should be fully aware of before being tempted by this type of mortgage arrangement. Although despite the cost it can make sense in certain scenarios.

Below is the link to the Vancouver Sun article:

Want a mortgage at 0%?All you need to do is skirt a few rules

I think it's important to point out that all 3 options carry a cost to the borrower with the second option most likely being the cheapest.

I also feel it's important to note that any time your skirting around rules you could open yourself up to potential problems unless you are fully aware of all of the issues.

Don't hesitate to contact me if you have any questions on the Vancouver Sun mortgage article.

You can also visit my website for tips on mortgages in Vancouver at MyMortgageBC.com.

Why the Canadian Housing Market is Not Set to Melt Down

2008-10-03T18:15:00.000-07:00

This article provides a much different perspective on the Canadian housing market. All I've been hearing is gloom and doom so this is somewhat refreshing. Please feel free to leave your comments.

Why the Canadian Housing Market is not set to Melt Down.

While the "best days" for Canada's real estate markets may be over, comparing the Canadian outlook to the U.S. housing meltdown is off base, two Bank of Nova Scotia economists say in a new report.

Earlier this week, Merrill Lynch Canada economists warned Canada's housing market could be vulnerable to a U.S.-style crash, drawing a response from Prime Minister Stephen Harper rejecting that.

Derek Holt, vice-president of Scotiabank's economics department, and his colleague Karen Cordes, cite several reasons why the Canadian mortgage market is healthier than that of the United States. They do not mention the Merrill study.

"We do believe that the best days for Canadian housing markets are behind us, and that lower volumes of new home construction and resales lie ahead alongside further fairly modest erosion of house prices," they write. "Calgary and Edmonton are the most exposed in this regard. But, arguing that consequences to the overall Canadian economy and to debt markets particularly in terms of mortgage-backed securities are as severe as they are in the U.S. is way off base."

Here are the findings of Scotiabank's Mr. Holt and Ms. Cordes, as printed in their report:

Debt growth over the full cycle

Much is being made of the fact that Canadian debt growth relative to incomes over recent years has been on par with the U.S. experience.

Ergo, one is led to conclude, Canada must face similar stresses to its own housing and mortgage markets.

Nonsense. One must look at the full cycle and use the right measures. Recent Canadian debt growth reflects the unleashing of pent-up demand from the 1990s. Canada's recession in the early 1990s was more severe, and the effects were longer lasting by way of how long it took housing markets and the consumer sector to get back on their feet. The U.S. recession of the early 1990s was comparatively mild, and the economy rebounded faster such that U.S. debt growth over the long-haul has exceeded debt growth in Canada.

Leverage - night and day comparisons

Canada's ratio of household debt-to-income is much lower than the U.S. Despite its popularity, however, this is the worst way to look at leverage since it compares total debt amortized over decades to a single year's after-tax income, which is a stock-to-flow comparison that most economists avoid. One doesn't take out a mortgage on Jan. 1 with the expectation of having to pay it all back out of the current year's income by Dec. 31, so why make the comparison?

The best way to judge the full cycle's influences upon debt growth in Canada versus the U.S. is to look at where the two countries stand today on leverage on the household balance sheet (i.e., debt as a share of assets). This must be done by making adjustments to ensure comparability of Canadian and U.S. household sector balance sheet data. In Canada, total debt as a percentage of total assets sat at 20 per cent as at the end of 2007. The U.S. ratio is about 26 per cent. By corollary, Americans have used nearly 30 per cent more debt to purchase assets than Canadians. Clearly, Americans and Canadians have different debt tolerances.

Canadian mortgage markets are fundamentally healthier than the U.S.

Canada's subprime market is small (5-6 per cent of outstanding mortgages) whereas the U.S. share peaked at about three times that. As a share of originations, 20-25 per cent of new mortgages in the U.S. were subprime over the 2004-06 period. So Canada isn't anywhere near as exposed to the products that caused most of the damage in U.S. housing markets.

Not only is Canada's subprime market much smaller, but it isn't even really subprime per se. Canada's subprime market is more like the U.S. near-prime market, whereas the U.S. subprime market often lent to borrowers with extremely impaired quality.

Adjustable rate mortgage (ARMs) resets also caused many of the problems stateside, but those resets occur much more suddenly in the U.S. By contrast, the closest Canadian product parallel is the variable rate mortgage, but they get constantly repriced so that people aren't caught offguard years later. Furthermore, in Canada, some variable rate products adjust the principal, not the payment. On balance, the shock effect from payment resets in Canada is nowhere close to what has caused much of the problem in the U.S.

Canada's mortgage equity withdrawal market isn't like the U.S. We've seen secured home equity lines of credit (Helocs) grow in Canada as a way of withdrawing equity, but nothing like the U.S. withdrawals picture. U.S. homeowners' equity has been in free-fall with mortgage debt growth outpacing housing assets since the early 1990s. Canada, by contrast, retains much higher homeowner equity, and while it may have reached a plateau, the figure has risen in recent years while the U.S. position has deteriorated.

Mortgage interest is deductible against taxes in the U.S. It generally is not in Canada. That creates vastly different incentives to leverage oneself in the two markets.

The nature of the products has been very different in Canada versus the U.S. Examples of Canadian innovation like long amortization mortgage products are absolutely nothing like "Ninja" mortgages. Mortgage innovation was needed in Canada, but has been relatively more conservative.

Further to this latter point, long-amortization mortgage products actually extend the Canadian credit quality cycle. Long amortization periods of over 25 years have been dominant as a share of new mortgage originations since the 40-year mortgage was introduced almost two years ago. However, there is still an overwhelming majority of Canadians who face the option of extending from the previously standard 25-year product into longer amortization products in a manner that lowers their payments in the face of shocks. Even though insured 40-year mortgages are now banned in principle, 35-year mortgages still provide this flexibility.

Investor mortgages were among the first products to default in the U.S. ,where they account for about 9 per cent of all outstanding mortgages, similar to the U.K. (9.5 per cent) and Australia (10 per cent). In Canada, however, they are about 2-3 per cent of all outstanding mortgages. There are problems in the investor segment the world over, but the magnitude of the exposure in Canada is far less significant.

If there is an imminent problem brewing, then it's not showing up in terms of industry-wide mortgage delinquency patterns. Mortgages 90+ days in arrears in Canada remain at 27 basis points, which is the range around which they've been floating since mid-2004. By contrast, even when the country had double digit variable mortgage rates and double digit unemployment rates in the early 1990s, the peak rate of delinquency was about 65 basis points. We're of the opinion that delinquencies will deteriorate going forward, but will be nowhere close to the U.S. experience.

The extent of runaway house price inflation was much more muted in Canada than in many other countries. Canada's priciest market is Vancouver, and prices have gone up by about 80 per cent since the mid-1990s start of the global housing cycle. London, England, by contrast, went up by about 270 per cent over this time period. Canada's house price appreciation was, on average, significantly below the U.S. experience since then, and much below the experience of many European countries.

Canadian mortgages are funded, underwritten, and enforced in a totally different manner

Canada's funding model is completely different from the U.S. The majority of mortgages are held on balance sheet in Canada, with only 24 per cent having been securitized. Thus, much more of Canada's mortgage book is funded by on-book retail deposits than is the case in the U.S. That also makes the banks more conservative about the products they are originating since they are mostly stuck on balance sheet.

Further, the majority of the securitized totals have been done through the CMHC - a Crown corporation with explicit government backing - thus avoiding the problems in the U.S. caused by the ambiguity of GSE liabilities. Other insured securitizations have been done through private insurers that also receive explicit government backing for the underlying assets through the Canada Mortgage Bond program.

Furthermore, Canadian financial institutions are not as reliant upon short-term lines extended by other financial institutions. The degree of reliance upon such funding in the U.S. is what caused excessive exposure to short-term swings in market sentiments, not to mention adverse incentive effects.

Mortgage-Backed Securities (MBSs) were not placed in off-balance-sheet SIV and CDO structures as in the U.S. So, Canada MBS investors do not face the same heavily leveraged investor risks. This is perhaps the most important point, since origination mistakes in the U.S. were bad enough, but what really caused the problems were dollops of leveraging that occurred after the mortgages were originated.

Unlike many U.S. banks, Canadian banks continue to apply prudent underwriting standards. In other words, they have always checked, and continue to check, incomes, verify job status, ask for sales contracts, etc., such that all those questions your banker asks in Canada have a purpose that somehow got lost on many American bankers. The no-income-no-job-no-asset ("Ninja") style, here-are-the-keys-to-your-brand-new-home lending just didn't take hold in Canada.

Appraisal standards are generally higher in Canada, where appraisals are more likely to low-ball estimates of property value before making the final decision on how much to lend.

Finally, enforcement of Canadian mortgages is not as tilted in the borrowers' favour as it is in the United States. In the U.S., lenders have little recourse - they can take the keys and settle relatively quickly, or sue and go through great expense for a potentially lengthy period. Alberta is similar to the U.S. treatment in this regard. But the rest of Canada provides greater recourse to lenders than in the U.S.

Globe & Mail

I'm a mortgage broker in British Columbia.

Vancouver Home & Interior Design Show

2008-09-23T11:03:00.000-07:00

For those Homeowners in the Vancouver Lower Mainland area you may be interested in the upcoming Vancouver Home and Interior Design Show. This is THE event for anyone just looking for a few ideas and the basics or for someone that wants re-do their entire home. They'll have many exhibits and demonstrations throughout the event. Event runs from Oct 16th to the 19th at BC Place.

Show Dates & Hours

Thursday, October 16 4 pm - 10:00 pm
Friday, October 17 Noon - 10:00 pm
Saturday, October 18 10:00 am - 10:00 pm
Sunday, October 19 10:00 am - 6:00 pm

What does it cost?

Adult (online):	$12.00
Adult (at door):	$14.00
Seniors (55+):	$10.00

Children 7 - 17:	$5.00
Childre ages 6 & under:	FREE

Tickets available at the door – cash only.

Visit here learn more about the Vancouver Home and Interior Design show.

Although I'm not an interior designer I can help finance that big renovation or home update as a Mortgage Broker located in the Vancouver area. I'm always available to answer any questions you might have. Enjoy the show.

Canadian Mortgages and the US Crisis

2008-09-18T19:32:00.000-07:00

Canadian Mortgages and the US Crisis

Some of you may be wondering the impact the current US Financial crisis may have on the Canadian economy and the impact on Canadians seeking mortgages.

In Canada our lenders were much more conservative and didn't offer the aggressive mortgage products that the US lenders did. The exposure that Canadian mortgage lenders have is much different than that of the US. The aggressive US mortgage products were big contributors to the current US financial problems. The conservative Canadian mortgage lending practices have allowed us to remain separated from the US credit crisis.

In Canada, we are experiencing an economic slowdown, but nothing like what the US is experiencing. We are also yet to see rising inflation numbers despite the increase in the price of fuel. If we find ouselves in an inflationary environment we will see the impact with higher mortgage rates.

Bank of Canada has stated that they will continue to provide liquidity as required in order to support the stability of the Canadian financial system and the functioning of the financial markets.

The Canadian government is expected to keep interest rates low to stimulate the markets. The Canadian government has taken preventive measures to avoid the housing crisis in the US. As of October 15, 2008 Canadian Banks and mortgage lenders will no longer be able to offer 40 year ammortizations, 100% mortgage financing and minimum credit score requirements.

This will impact the have to become more strict therefor making it more difficult to obtain a mortgage from the big lenders in Canada. I've seen lenders become more and more stringent over the last year. =This approach started with mortgage lenders last year and has accelerated as the US continues to struggle. With that said, all lenders are still happy to provide mortgages to people that can prove income, have a down payment and good credit.

I'm a mortgage broker in Vancouver, BC and offer mortgages throughout BC at the best mortgage rates possible. Visit me at www.MyMortgageBC.com

Don't hesitate to leave your comments and thanks for visiting.

Bank of Canada Holds the Prime Rate Steady

2008-09-03T14:52:00.000-07:00

Bank of Canada To Keep Interest Rates Unchanged

Vancouver — My Mortgage BC.com - 03 Sept - The Bank of Canada stuck to its guns on interest rates Wednesday, holding the overnight rate at three per cent despite acknowledging that both inflation and the economy are weaker than previously projected.

The central bank's decision to stay on the sidelines for the third consecutive announcement date had been widely predicted.

"There is absolutely no signal here whatsoever they are preparing to cut rates (in the future)."
Scotia Capital economist Derek Holt, who had urged the bank to lower its key interest rate to spur borrowing and boost the economy, was even more blunt, calling Carney's language on the economy as bordering on the "Pollyannish."

With a federal election call expected later this week, the bank may not have wanted to send a strong signal about downside risks to growth, he said.

The market's reaction, boosting the Canadian dollar almost a cent to 94.54 cent U.S. in early trading, was an indication many expected a clearer signal from Carney on future interest rate cuts.

Inflation currently stands at 3.4 per cent.

The bank said the economy remains vulnerable to U.S. weakness and tight credit conditions that could further drag down demand for Canadian exports.
"Given these developments, the bank judges that the current level of the target for the overnight rate remains appropriately accommodative," it said.
Porter said the bank may feel that having chopped 1.5 percentage points from the overnight rate since December, it has cut interest rates deep enough.

The Bank of Canada's next interest rate decision will be Oct. 21.

MyMortgageBC.com is a mortgage broker located in Vancouver BC.

Bank of Canada Unlikely to Raise Interest Rates

2008-08-21T18:14:00.000-07:00

Interesting article in the Vancouver Sun today predicting that the Band of Canada is unlikely to raise rates. This is great news for those in variable rate mortgage products.

BoC unlikely to raise rates, despite inflation jump

Vancouver Sun

Published: Thursday, August 21, 2008

Inflation in Canada clocked in at 3.4 per cent in July, the highest level in more than five years. Yet with the economy still weak, economists agree that the Bank of Canada is unlikely to attempt to rein in inflation by raising its bank rate in September.

The biggest contributor to July's inflation was gas prices, which were 28.6 per cent higher across the country last month compared to a year earlier, Statistics Canada reported Thursday.

Food prices and mortgage interest costs were also up, the report said.

On the other side of the balance sheet were drops in the prices of vehicles and computer equipment, Statistics Canada said.

In British Columbia, the inflation rate was slightly below average at 3.3 per cent despite an above-average increase in the cost of gas, which rose 31.5 per cent in the province.

The gas-price increase may reflect the provincial government's new carbon tax, which was implemented on July 1 and added 2.4 cents a litre to the price of gas, said Bernie Magnan, chief economist with the Vancouver Board of Trade.

The province's lower-than average inflation rate may be due to B.C. residents having to spend such a large portion of their income on housing that businesses have a hard time raising prices for other goods, Magnan said.

With the price of gas expected to drop in August, inflation is likely to ease too, he said.

But Derek Holt, vice-president of Scotia Capital Economics, said inflation is likely to stay high because it is measured year over year. So even as gas prices fall, they remain higher than they were a year ago.

Holt counselled not paying too much attention to the year-over-year numbers and focus instead on month-to-month comparisons.

While inflation was 3.1 per cent in June compared to a year earlier, prices were up 0.8 per cent from May. But price rose only 0.3 per cent from June to July, an indication that inflation is actually cooling, Holt said.

Taking the volatile elements out of the equation, such as fuel and fruits and vegetables, inflation was only "a remarkably well-behaved" 1.5 per cent, Holt said.

"So that suggests that even though commodities were elevated there really wasn't any pass-through of those higher commodity prices by businesses into the broader spectrum of consumer pricers," Holt said.

However, B.C. may start experiencing higher than average inflation in the coming months because of the buildup to the Olympics, he added.

Cities hosting Olympics usually have higher inflation rates leading up to and after the Olympics because of the work involved getting ready and the people and business the games attract, he said.

So far B.C. has remained "surprisingly well-anchored," Holt said.

That could be due in part to the dampening effect a weak U.S. economy has on the province, especially its forest sector, he said.

Both Holt and Magnan believe that despite July's high inflation rate - the highest since March 2003 - the Bank of Canada is unlikely to change its overnight target bank rate in September.

While the central bank's focus is a target inflation rate of around two per cent it also has to ensure any rate changes don't hurt the economy, they said.

Holt added that while the bank will hold rates steady in September, it will communicate its intention to focus on the economy, thus paving the way for rate cuts, despite the high inflation numbers, as soon as October.

I'm a mortgage broker located in Vancouver BC. Please don't hesitate to contact me if you have any questions regarding mortgages.

Real Estate Expectations Changing

2008-07-24T19:23:00.000-07:00

A market shift = a shift in expectations

Real Estate market conditions in the Lower Mainland and other parts of BC have shifted. After five years of blockbuster Real Estate activity in BC and double-digit price growth, market conditions have slowed, and now favour buyers in many areas of the province.

Residential sales have declined 22 per cent in the first six months of this year, while available resale inventory has grown by 54 per cent to 57,000 active listings in June. In the Greater Vancouver board area, where longer-term data is available, inventory is at the highest level since 1998.

Home price appreciation observed from 2004 to 2007 is less attainable in today’s market, and sellers’ expectations for such gains should be tempered. More generally, in a market favouring buyers, prices generally increase at or below the level of inflation. While the average residential home price in BC increased at a healthy 6 per cent per year since 1981, large gains are often followed by periods of price stagnation. Over-optimistic pricing by sellers will only inhibit the timely sale of properties, adding to inventory levels.

Buyers have more homes to choose from now than in previous years, resulting in greater freedom to compare the attributes and prices of similar properties in the market before making purchase decisions.

Despite current buyers' market conditions fuelled by housing affordability constraints and economic uncertainty, the economic and demographic backdrop in support of housing demand remains strong in BC. BC's unemployment rate remains near record lows, while the labour force participation rate hovers near historical highs. Meanwhile, the province remains a favoured destination for new migrants, reflected in the third-highest population growth among provinces during the first quarter of 2008. However, challenges continue in the forestry sector, and eroded consumer confidence may also be playing a role in a pull back of consumer spending.

As a mortgage broker I can still offer 100% until October 2008 at fully discounted rates.

100% Financing & 40 Year Ammortizations Coming to an End

2008-07-10T08:52:00.000-07:00

It looks like the days of Zero down mortgages and 40 year amortizations in Canada are numbered. The changes are set to take place October 15, 2008 which gives those 90 day closings and rate holds a chance to either fund or expire. It will be interesting to see if this causes a short term run up on housing sales as people jump to take advantage of the 40 year or 100% before its gone. It will equally as interesting to see what effect this has on house pricing, especially in the lower mainland when the 35 year amortization becomes the max.

Ottawa revamps mortgage rules

KEVIN CARMICHAEL

Globe and Mail Update, Reuters

July 9, 2008 at 4:36 PM EDT

OTTAWA — The federal government says it will no longer guarantee 40-year mortgages, one of a handful of measures aimed at guarding against a U.S.-style housing bubble.

The Finance Department said Wednesday in a news release that the government will guarantee no mortgages with durations longer than 35 years. The government also will demand a minimum down payment equal to 5 per cent of the value of the home.

“Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada,” the Finance Department said.

The government hastened to emphasize that Canada's housing and mortgage markets were performing much better than in the United States.

Canadian housing prices are in line with economic factors such as low interest rates, rising incomes and a growing population and the demand for residential housing remains buoyant at more than 200,000 housing starts a year, it said.

The percentage of bank mortgages in arrears is also stable at 0.27 per cent, the lowest levels experienced since 1990 and well below the highs of 0.65 per cent in 1992 and 1997.

“The historically prudent and cautious approach taken by Canadian financial institutions to mortgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets,” it said.

It nonetheless noted “accelerated financial innovation” in the mortgage markets since the fall of 2006, for example, allowing loans up to 100 per cent of the value of the house and increasing amortization periods to 40 years from 25 years.

The government will now require a consistent credit score for mortgages it backs, and a minimum level of loan documentation standards to ensure evidence of the reasonableness of property values and the borrowers' income.

In addition, government guarantees will not be allowed for high-ratio mortgages where amortization is not required in the first few years – e.g., mortgages that begin with interest-only payments.

Finally, it will set a maximum of 45 per cent on a borrower's debt-service ratio – the proportion of gross income that is spent on debt service and housing-related fixed or essential payments.

April 2008 MLS Stats

2008-06-02T16:05:00.000-07:00

April MLS Statistics:

Greater Vancouver:

Fraser Valley

Chilliwack

Victoria

Vancouver Island:

Okanagan (including South Okanagan)

Kamloops

BC Northern:

Kootenay:

Bank of Canada Drops Rates By .50%

2008-04-22T17:19:00.000-07:00

April 22, 2007 - Bank of Canada drops the overnight rate by .50%.

None of the lenders have reacted by lowering their mortgage rates yet but as soon as I see somes changes by the mortgage lenders I'll post the mortgage rate updates.

Here is the link to the Bank of Canada press release regarding the rate drop.

This is the best time to be pre-approved for a mortgage that we've seen in a long time. Give me a call at 604-764-6336.

Interest Rates Heading Lower? TD Securities Thinks So.

2008-04-11T15:12:00.000-07:00

April 10 (Bloomberg) -- Canada's February trade surplus widened to the largest in nine months, led by increased exports of passenger cars and energy. The surplus widened to C$4.94 billion from a revised C$2.78 billion in January, Statistics Canada said today in Ottawa. Exports rose 3.8 percent, the fastest in 11 months, as energy sales abroad rose to a record.

Canada, the world's eighth-biggest economy, is benefiting from high demand for commodities such as oil and metals, helping the country ride out a slump in manufacturing. Still, the outlook for exports is likely to worsen in future months as the U.S. economic slowdown crimps demand for Canadian products, said Jacqui Douglas, an economist at TD Securities in Toronto.

``I don't think the Bank of Canada is expecting this to continue,'' Douglas said of the widening surplus. ``The risk is that exports turn down sharply over the next few months.'' The central bank cut interest rates by half a point for the first time since 2001 on March 4, citing ``intensifying'' signs of a decline in exports on slower demand from the U.S. and the high Canadian currency.

TD Securities, a division of Toronto-Dominion Bank, expects the central bank to lower interest rates 150 basis points to 2 percent by July, starting with a 50 basis point reduction at the next announcement on April 22.

TOP 5 TIPS FOR FIRST-TIME BUYERS

2008-03-30T20:34:00.000-07:00

TOP 5 TIPS FOR FIRST-TIME BUYERS

1. Don't shop on an empty stomach: Experts (like me) recommend getting pre-approved for the biggest mortgage you can comfortably afford before you start looking at homes. That way you won't be disappointed when you find out you can't afford that dream home you've set your heart on.

2. Investigate your location: Before you buy, check out local schools, recreational opportunities, amenities and arts and culture. These things often get overlooked in the quest for an easy commute.

3. Practise the commute to work: Before signing anything, try actually getting up early in the morning and doing the commute to work a few times so you'll know how long it really takes.

4. Do your homework: Research government programs that assist first-time home buyers such as the property transfer tax credit or the RSP Home Buyers Plan, as well as the developer's project history in the case of new and nearly new homes.

5. Take advantage of low down-payment mortgages: Experts say even 0 and 5 per cent-down mortgages are a good move in this market because home values are appreciating faster than people can save for bigger down payments.

I would be happy to help answer any questions you may have if you're a first time home buyer or would like to be pre-approved for a mortgage. I can be contacted at 604-764-6336 or via email brent@globalmortgagecorp.net.

Lower Mainland Free First-Time Home Buyers Seminar

2008-03-22T13:44:00.000-07:00

Lower Mainland Free First-Time Home Buyers Seminar

With home values still rising, 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, April 8 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 the sponsorships by TheVancouver Sun, The Province, Homeowner Protection Office, Canada Mortgage & Housing Corporation, Real Estate Board of Greater Vancouver, Genworth Financial Canada, TD Canada Trust, Shaw Cablesystems, CKNW, Rock 101, AM 730 and 99.3 the FOX.

Speakers are Robyn Adamache, senior market analyst, Canada Mortgage & Housing Corporation; Ken Cameron, chief executive officer, Homeowner Protection Office; Narrinder Dhanoya-Bhangu, regional vice president, Genworth Financial Canada; Bill Niblett, regional sales manager, TD Canada Trust; Deborah Spicer, director, Real Estate Board of Greater Vancouver; Ralph Archibald, senior vice president, Polygon Homes; and Adnan Habib, managing partner, Baker Newby Barristers and Solicitors. 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.

My Mortgage BC.com note: I've spoken to people that have attended this event and the past and have said it was very informative. We are mortgage financing specialists with the experience to not only walk you through the home buying process from the beginning to the end but will also ensure you get the best mortgage rate to ensure that you save money (often thousands). Please give us a call at 604-764-6336 if you have any questions about obtaining a mortgage or the home buying process.

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.

Mortgage Rates Coming Down?

2008-03-21T19:30:00.000-07:00

Helmut Pastrick is the chief economist for BC Central Credit Union. Helmut expects that mortgage rates will continue to decline in 2008 and 2009. "Most of the decline in 2008 will be in variable-rate mortgages, while in 2009 fixed-term mortgage rates will drop the most," he said.

"The Bank of Canada cut its target rate by 50 basis points to 3.50% on March 4, bringing the cumulative reduction in rates to 100 bps since the Bank started easing last December. Another rate cut in April is practically guaranteed and another in June is highly likely. Further rate cuts are possible, but at some point the economic news and outlook will begin to improve. That will probably play out in the second half of 2008. There is considerable monetary and fiscal stimulus in the U.S. pipeline and some in Canada as well. The Bank is in a holding pattern until mid-2009, when it will begin returning the target rate to levels appropriate to evolving higher economic growth. Longer-term bond yields will climb higher as the economic news and outlook improves in 2009. However, this will not translate into higher fixed mortgage rates, since the cost of funds will decline when credit markets return to a more normal state and the current abnormally high risk spreads narrow."

Home Sales Slip in February

2008-03-18T14:49:00.001-07:00

Home Sales Slip in February

Vancouver, BC – March 17, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC rose 4.5 per cent to $3.26 billion in February, compared to the same month in 2007. Residential unit sales dipped 9.8 per cent to 6,822 units during the same period. The average MLS® residential price in the province reached $478,172 in January, up 15.8 per cent from February 2007.

“BC home sales fell for the second consecutive month, marking the slowest start to a year since 2003,” said Cameron Muir, BCREA Chief Economist. “While it’s still too early to call a trend, fewer home sales and an increase in active listings may be pulling the BC housing market toward balanced conditions.”

“Strong employment and wage gains over the last year continue to underpin housing demand,” said Muir. The number of unit sales recorded in the month was 13 per cent above the February average from 1998 to 2007. “However, continued erosion in housing affordability may be taking a toll on the ability-to-pay for some buyers.”

Additionally, a weak US economy and lower demand for BC lumber is negatively impacting BC’s forestry industries and local resource communities, while current economic volatility may also be impacting the confidence for some would-be buyers.

My Mortgage BC.com note: This could be good news for anyone looking to purchase a home in BC. Lower sales should create some buying opportunities.

Bank of Canada Lowers Interest Rates

2008-03-04T14:15:00.000-08:00

The bank of Canada has reduced their key lending rate by ½ a percent and more cuts may be coming as Canada prepares itself for the impact of a potential US recession. The next meeting is scheduled on Apr 22, 2008. With “core” inflation running at about 1.4%, well below the 2.0% target, there was room for a “monetary stimulus” and a ½ point reduction.

This cut has is great for people that have variable rate mortgages or lines of credit because the rate is directly tied to the prime rate. We'll have to wait to see the impact the prime rate drop has on longer term fixed mortgages.

BC Property Transfer Tax Changes

2008-02-21T11:21:00.000-08:00

Good news for BC first time home buyers BC has made some changes to the First Time Homebuyers' Property transfer Tax Exemption.

First time home buyers can now qualify for a full exemption with a purchase price of less than $425,000.00 (instead of $375,000.00). The partial exemption is now applicable when the purchase is more than $425,000.00 but less than $450,000.00.

Further, buyers can now finance any proportion of the purchase they wish without losing the exemption! This is really significant because it now allows buyers who cannot qualify for a mortgage without providing a 35% down payment, the opportunity to qualify for the exemption.

If you want more details, you can check out this BC Government
link:

http://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_004.pdf

My Mortgage BC.com is a mortgage broker specializing in helping first time home buyers enter the housing market.

Canadian Mortgage Rate Update Feb 6, 2008

2008-02-06T14:24:00.000-08:00

Thanks to all of the visiters to my blog.

Canadian Mortgage Rate Update Feb 6, 2008

Bank of Canada lowered the Prime Rate and the lenders have follower on their variable produccts but have been slow to move their fixed rates down.. Expect rates to drop further in the next few months.

The Bank Prime Rate is currently 5.75%.

Best Fixed Mortgage Rates:

1 Year Fixed 5.95%
2 Year Fixed 6.05%
3 Year Fixed 6.05%
4 Year Fixed 5.05%
5 Year Fixed 5.84%**
7 Year Fixed 6.20%
10 Year Fixed 6.25%

5 Year Rate Special 5.74% ** Must close before Feb 28th, 2007.

Best variable rate is Prime -.60% or 5.15%

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.

RBC study: homes will be more affordable in 2008

2008-01-24T16:53:00.000-08:00

If the Royal Bank. is correct, this could be great news for anyone entering the housing market

Buying a house will become easier and more affordable in 2008, according to a Royal Bank of Canada report released Thursday.

Canadians in the market for a new home will likely be helped by dropping interest rates, say RBC economists. Just this week, the Bank of Canada cut its key rate by one-quarter of a percentage point Tuesday.

Derek Holt, assistant chief economist at RBC, says he expects consumers will benefit as longer-term mortgage rates come down. He added that central banks will probably lower interest rates further -- perhaps by a full percentage point -- and that should make short-term mortgages more affordable.

Potential homebuyers will also be helped by a slowing in the appreciation rate of the resale value of homes. The RBC report notes that home ownership costs -- which last year climbed steadily -- will probably be one of the biggest factors making homes easier to buy in 2008.

"Almost every house class in every province and major city saw affordability deteriorate last year," said Holt.

"Unlike the late 1980s and early 1990s when both unemployment rates and interest rates pushed into double digits and led to declining affordability, the prime culprit this time around has been a long string of house price gains that have outstripped income gains."

In late 2007, B.C. homebuyers were hardest hit as housing affordability "deteriorated to its worst level since 1985." The report states that the province should see "modest improvements in 2008."

The study notes that Alberta's red-hot housing market will also likely cool due to "a softer influx of migrants," making homes easier to buy for homebuyers who were priced out of the market last year. In Ontario, toughening economic conditions are expected to slow income growth and so will moderate housing price gains.

The RBC report predicts that Canada's overall resale house price appreciation is likely to slow to between five and seven per cent this year.

Expect Another Rate Cut In March Say The Economists

2008-01-22T14:52:00.000-08:00

Good news for anyone needing a mortgage in the upcoming months. Canadian economists expect another 1/4% rate cut by the Bank of Canada in March.

Because of the slowdown of the US economy and the impact that has here in Canada most economists agree that in order to keep our economy stimulated the Bank of Canada will be lowering rates.

JP Morgan Chief Canadian Economist Ted Carmichael said he expects the Bank of Canada to lower its key rate by 50 basis points at each of its next two monetary policy-setting dates.

"We believe that by the next meeting, data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown," Beata Caranci, director of economic forecasting at TD Bank, said.

"Given that economic and financial market conditions will probably continue to deteriorate between now and the next policy announcement on March 4, you can't rule out an eventual 50-pointer," Michael Gregory, senior economist at BMO Capital Markets, said.

Bank of Canada cuts rates by 25 basis points

2008-01-22T09:47:00.000-08:00

Bank of Canada has cut it's overnight rate by 1/4 percent. We will have to see if the Canadian Banks respond and start lowering their fixed term mortgage lending rates. The Bank of Canada also indicated that we can expect further rate cuts to help deal with the drastic slowdown in the US economy.

For those interested the Bank of Canada will be publishing their full analysis on Thursday.

The Globe and Mail has what I feel is the best report on this rate decrease.

Canadian Mortgage Rate Update Jan 10, 2008

2008-01-10T11:58:00.000-08:00

Canadian Mortgage Rate Update Jan 10, 2008

It will be interesting to see what the Bank of Canada decides to do with interest rates in the upcoming months. The Cheif Economist from Merrill Lynch has said that he expects the Bank of Canada to drop interest rates as much as 150 basis points. I find that hard to believe with the way the Canadian Economy has been going.

The Bank Prime Rate is currently 6.00%.

Best Fixed Mortgage Rates:

1 Year Fixed 6.00%
2 Year Fixed 6.10%
3 Year Fixed 6.10%
4 Year Fixed 5.95%
5 Year Fixed 5.99%
7 Year Fixed 6.25%
10 Year Fixed 6.30%

Best Variable Rate Mortgage:

Best variable rate is Prime -.60% or 5.40%

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.

Top 2 Changes in the Mortgage Market For 2007

2008-01-02T09:54:00.000-08:00

Looking back on 2007 there were a couple of significant changes to help people that want to either enter the housing market or build their portfolio of rental houses. In my opinion these were the top 2 changes in the Canadian mortgage market:

Down payment requirements being lowered from 25% down to 20% down.
100% financing for rental units.

The reduced down payment requirements was a change in the long standing Bank Act which greatly reduces the insurance premiums people must pay to CMHC or Genworth. With housing prices increasing the way that they have over the last 30 years it's a change that only makes sense.

Your Opportunity to Own the Smallest House in Canada

2007-12-25T09:19:00.000-08:00

My Mortgage BC.com note: This post comes courtesy of Reuters news service. I have to ask, would you live here? I onced lived in a place that was about 550 square feet that I thought was fine but this place is almost half the size. You also might have trouble finding a lender that wants to mortgage the house.

I have to ask... Would you live here?

"TORONTO (Reuters Life!) - To exit through the back door of Toronto's "smallest house," first fold the Murphy bed back into the wall; it takes up the entire seven-foot width of the bedroom.

Built in 1912, the pint-size "Little House" features one bedroom, a kitchen with folding table and chairs, a living room and a full, if narrow, bathroom. With a living area of just 300 square feet, it was bought and renovated this year, and is back on the market for C$173,000 ($172,000).

"Holy cow, that is the smallest house," said cab driver Kamran Ghuman, after pulling up outside 128 Day Avenue in Toronto's west end. "It looks like it used to be a garage and then they made a house out of it."

Dwarfed between two larger homes, the detached bungalow was bought last spring for C$139,000 and redone inside and out, including a new decorative window for its gabled roof, hardwood floors, new cabinetry, appliances, a stone walkway and gardens.

"It reminds people of a small cottage or what they may have seen in a storybook," said owner David Blois, a property manager who took on the "flip" project.

Many neighbors agree.

"Look how cute it is. It looks like a little chapel," said Marika Wheeler, who has lived down the street for over 30 years and has seen the house change owners several times.

Blois says the house was built by a contractor on a strip of land where the city forgot to cut the curb for a laneway. He lived there for 20 years.

Since then, it has been home to several families, including immigrants from Hungary, Italy and Brazil.

Blois said one man who walked by the house during the renovations said he had lived there with his wife and three children.

Real estate agent Cristina Lopes said the property was a steal compared with bachelor or one-bedroom condominiums in Toronto, typically priced at over C$200,000 on property Web site mls.ca.

"Even though this is only 300 square feet, it looks more spacious than a condo that's 700 or 800 square feet," Lopes said. "It all depends on the layout and the layout of this home was really nicely done."

The house, on a street of two- and three-bedroom homes, also boasts a patio and parking for two cars, as well as a storage basement, accessible through a trapdoor in the floor.

Lopes said the owner has received a few offers since the house went on the market in the fall, but they fell through."

Completing a House Purchase in December?

2007-12-12T12:46:00.000-08:00

It's important to note that during the holidays most legal offices, real estate offices and mortgage brokers will be operating at reduced capacity (or closed) during the last week of December. Many offices will close early on Friday December 21st and it's safe to assume most offices will operate with a skeleton staff during the following week. It's important to ensure your mortgage broker, realtor and lawyer have all of the required documentation earlier than normal. It is especially important this time of year because with the holidays it may be difficult to track someone down for a signature or last minute documentation.

For all of mortgage enquiries or clients we will be available at My Mortgage BC .com throughout the holidays and can be reached during the holidays via email or phone at 604-764-6336 or toll free at 1-888-665-1344.

A little planning ahead will help make this holiday season an enjoyable one.

Seven Easy Tips to Help Pay Off Your Mortgage Quicker

2007-12-10T15:45:00.000-08:00

Seven Easy Tips to Help Pay Off Your Mortgage Quicker

Mortgages in Canada are generally amortized over a 25 year period and more recently up to 40 year terms of repayment. Although a long amortization is normal, it doesn't have to take a mortgage borrower that long to pay off their mortgage. With a little bit of planning ahead, most mortgage borrowers can manage to pay off their mortgage easily in as little as ten years. How? Here are seven key tips, which if they're followed, can lead to mortgage freedom much quicker:

Tip #1 Make your mortgage payment each week, or every two weeks. One great strategy to pay off your mortgage in a shorter period of time is to opt to pay your mortgage each week, or even every other week. Both options lower your interest paid over the term of your loan and also result in the equivalent of an extra month’s mortgage payment each year. Paying your mortgage bi-weekly can reduce your mortgage amortization from 25 years down to 21.

Tip #2 When your income increases, increase your mortgage payments. If you get a 5% cost-of-living raise each year at your place of employment. If you live like you never got a raise, spending what you did before the raise, and you send that extra 5% of your income to your mortgage, then you will never miss the money and your mortgage balance will drop a lot faster. This is a very painless way of paying down your mortgage without feeling like you are sacrificing your way of life in any way.

Tip #3Make an RRSP contribution and pay down your mortgage with your income tax refund each year. If you're in the position where you get an income tax refund each year, use that money to put directly on your mortgage as an extra payment on the principle of your mortgage loan. You won’t miss the money, and your mortgage will get a nice reduction which will save you a ton of interest over time. You'll also have money in your RRSP so you'll have some cash to enjoy yourself when you have that mortgage free home

Tip #4 If you renew your mortgage at a lower rate, maintain the same payments. When you renew your mortgage and find that you are able to get a lower rate (like through a mortgage broker like myself) ignore the lower payment and continue to pay what you were paying before the new term took effect. The key to this stratagey is that all of the extra money paid will go towards the principle of your loan and once again you do not feel like you have to come up with extra money to make the extra principle payments with.

Tip #5 Round up you mortgage payments. Assume for a moment that your mortgage payment is $756 per month. You can very easily add extra principle payments on your mortgage by paying a more rounded number, such as $775 or $800 each month. Over time, by rounding up, the payments will lower your overall mortgage debt. I like seeing people utilizing this strategy in conjunction with tip #1.

Tip #6 Think about getting a variable rate mortgage. It has been shown that variable rate mortgages can save you money over time. If you can deal with the rate fluctuations, a variable rate mortgage is worth serious consideration.

Tip #7 Always use the services of a mortgage broker to ensure that you get unbiased advice and the lowest rate available.

Each of these seven tips are not complicated and the strategies may not seem like big money or time savers initially but over time when consistently applied you can save years off your mortgage.

Canadian Mortgage Rate Update December, 2007

2007-12-07T14:31:00.000-08:00

Canadian Mortgage Rate Update December 7, 2007

Bank of Canada reduced the prime rate by .25% which will save the people in variable rate mortgages some money. There has been very little change in mortgage rates in the last couple months. Fixed term mortgage rates remain unchanged even after the Bank of Canada announcement.

The Bank Prime Rate is currently 6.00%.

Best Fixed Mortgage Rates:

1 Year Fixed 5.60%
2 Year Fixed 5,65%
3 Year Fixed 5.70%
4 Year Fixed 5.95%
5 Year Fixed 5.99%
7 Year Fixed 6.05%
10 Year Fixed 6.15%

Best Variable Rate Mortgage:

Best variable rate is Prime -.60% or 5.40%

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.

Important Questions to Ask Your Mortgage Broker

2007-11-09T15:35:00.000-08:00

Most mortgage brokers are experts that work hard finding the right mortgage solution and simplifying the mortgage financing process. Brokers complete all the paperwork and keep up-to-date on industry issues and changes that could affect the decision you make about which mortgage solution is right for you.

In my experience, mortgage brokers offer a high level of integrity, customer service and industry knowledge. And generally speaking, broker services are provided free of charge to clients. Despite all of this I believe it's important to ask your mortgage broker a few key questions to help ensure you're dealing with the right one.

Some important questions to ask your Mortgage Broker

How long have you been a mortgage broker?

Can I get references from clients you have worked with?

How do mortgage brokers make money?

What is your experience with this type of transaction?

What is the process for closing my mortgage?

How quickly can it be done?

How long has this mortgage broker company been in business?

What lenders do you work with and why?

CMHC Now Offers 100% Financing on Rental Units

2007-11-02T14:39:00.001-07:00

CMHC will now allow real estate investors to purchase rental properties with NOTHING down. This is an innovative product launch by CMHC. Previously, the most generous programs were those offered by Genworth and AIG with 10% down. According to CMHC there is no limit to the number of rental properties you may own under their zero down program.

For people with great credit and provable income but have trouble coming up with the down payment required this could be a great way to to start building your real estate investment holdings.

One drawback to the 100% financing rental program is a higher CMHC premium. CMHC charges an insurance premium of 7.25% on a 100% financing but should be fully tax deductible. The premium decreases with the more you put down.

Another draw back is that right now it's difficult to find a lender that is offering the 100% financing for rental units. It's not unusual for banks to take a bit of time to adopt new lending programs.

Don't hesitate to contact us for more details about your mortgage needs. We can be reached at 1-888-665-1344 or 604-764-6336. We are a mortgage broker located in Canada, BC helping people purchase property.

Canadian Mortgage Rate Update Effective October 20, 2007

2007-10-20T11:58:00.000-07:00

Canadian Mortgage Rate Update October 20, 2007

The Lenders increased their 5 year fixed mortgage rate this week and all other rates remain the same. The Bank of Canada announced this month that they would leave the prime rate unchanged. Below are fully discounted rates available to you.

The Bank Prime Rate is currently 6.25%.

Best Fixed Mortgage Rates:

1 Year Fixed 5.60%
2 Year Fixed 5,65%
3 Year Fixed 5.70%
4 Year Fixed 5.95%
5 Year Fixed 5.99%
7 Year Fixed 6.05%
10 Year Fixed 6.15%

Best Variable Rate Mortgage:

Best variable rate is Prime -.60%

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.

Bank of Canada Keeps Rates Unchanged

2007-10-16T18:02:00.000-07:00

Bank of Canada projects lower growth in '08, keeps rate unchanged

My Mortgage BC.com note: This is an important development for interest rates in Canada. The Bank of Canada predicts a downturn in the economy as a result of the strength of the Canadian dollar. This should help keep mortgage rates steady.

VANCOUVER, BC - The Bank of Canada has kept its key overnight rate unchanged at 4.5 per cent, saying it is less worried about inflation and projecting a marked slowdown in the Canadian economy next year.

In an unusually fulsome announcement, the central bank cites a series of conflicting and changing economic and financial indicators that suggest it may remain on the sidelines in terms of interest rates for some time.

The Canadian economy, it said Tuesday, is running further above its production potential than previously forecast, fuelled by robust global growth and strong commodity prices.

But the Canadian economy is headed for a sharp downturn, the bank predicts.

The deepening U.S. housing crisis will cut into the U.S. economy even further and the bank now projects growth south of the border will average a meagre 1.9 per cent this year and 2.1 per cent next.

That, along with the Canadian dollar soaring above parity with the greenback, and tight credit stemming from the summer financial market turmoil, will also start to cool Canadian growth as U.S. demand for Canadian exported goods dwindle.

As such, the bank has hiked its projected growth for the Canadian economy for this year from 2.5 per cent to 2.6 per cent, but said the economy will slow markedly to 2.3 per cent next year and 2.5 per cent in 2009. In July, the bank had said growth in Canada would average 2.6 per cent next year.

"In line with this projection, the bank judges, at this time, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term," it said in the statement.

But in fact interest rates are higher than would be assumed, the bank said. Following this summer's subprime mortgage meltdown in the U.S., the bank said the cost of borrowing for firms and households a quarter-point higher than assumed prior to tightening credit conditions.

The central bank noted that although inflation has been running ahead of its two per cent target for more than a year, it expects that both core and total inflation will return to the target by the second half of next year.

"There are significant upside and downside risks to the bank's inflation projection," he adds.

On the upside, excess demand in the Canadian economy would persist longer than projected because of higher consumer spending and lower productivity growth.

On the downside, the loonie, which is running well above the bank's previous forecast of 93 to 95.5 cents US, could remain above the 98 cents US level the bank is not projecting, and the spillover from the U.S. housing slump would be greater than expected.

"All factors considered, the bank judges that the risks to its inflation projection are roughly balanced, with perhaps a slight tilt to the downside," it said.

The bank last changed its key rate on July 5, when it hiked interest rates from 4.25 per cent to 4.5 per cent. The bank's next scheduled date for announcing interest rates is Dec. 4.

MyMortgageBC.com is a mortgage broker located in Vancouver, BC. You can take advantage of our knowledge to help you with your next mortgage. Give us a call at 604-764-6336,

9 Questions to ask your Lender when shopping for a Mortgage

2007-10-10T10:28:00.000-07:00

For most people, obtaining a mortgage is likely the largest financial transaction their lifes. It is important to have as much knowledge as possible to make an informed decision. We have compiled a list of nine basic mortgage questions. Ask your Lender these questions and sit back and listen to the answers. It probably wouldn't hurt to write down the answers. We would be happy to help you make an informed decision with your mortgage.

How is the interest on my calculated? What is the difference between monthly and semi-annual compounding?
Is the mortgage portable? Is the mortgage assumable?
Am I still responsible if someone assumes our mortgage?
What are mortgage interest rates based on?
When the Bank of Canada changes interest rates, how does this impact my mortgage?
What penalties would I pay if I wish to move to another Bank or payoff this mortgage?
Is there a way to avoid or reduce mortgage penalties?
How are these penalties calculated? What does interest differential mean?
Is there a method to make this mortgage tax deductible?

Don't hesitate to contact us at 604-764-6336 if you have any mortgage financing questions.

We can help you obtain a mortgage at the lowest rates.

BC Home Sales to Surpass 100,000

2007-09-27T18:17:00.000-07:00

BC Home Sales to Surpass 100,000
BCREA Fall Housing Forecast

Vancouver, BC – September 27, 2007. The British Columbia Real Estate Association (BCREA) released its fall 2007 Housing Forecast today.

BC Multiple Listing Service® (MLS®) home sales are forecast to break the 100,000 unit mark for only the second time in history. BCREA forecasts that BC MLS® residential sales will hit 101,000 units this year, up 4 per cent from 2006. The highest number of MLS® sales in the province was recorded in 2005, when a total of 106,310 homes were sold. The ten-year average is just under 78,000 units.

“Exceptionally strong consumer demand over the summer months has changed the outlook for this year from declining home sales to the second highest on record,” said Cameron Muir, Chief Economist. “While eroding affordability is squeezing some potential buyers out of the market, the housing stock is increasingly diverse, providing a mix of home types that appeal to a wide consumer market.”

BC home prices are also on the rise. The average MLS® residential price is forecast to climb 12 per cent to 7,000 this year. “While home prices continue to face upward pressure, the rate of growth is expected to moderate,” added Muir. The BC average MLS® price increased 18 per cent last year, and is forecast to rise at a more modest 8 per cent in 2008.

BC housing starts are forecast to decline 7 per cent to 33,900 units in this year and a further 4 per cent to 33,000 units in 2008. While single detached housing starts are trending down, multiple housing starts are holding firm at 21,000 units this year. Multiple housing starts now comprise 62 per cent of all new residential construction activity in the province.

The BCREA Housing Forecast is a semi-annual publication produced in the spring and fall of each year. The report contains forecasts and analysis of the BC economy and housing markets, including detailed forecasts by home type of the province’s 12 real estate board areas. End of Article. More details of the release is available from BCREA

MyMortgageBC.com is a mortgage broker that services all of the Lower Mainland including Vancouver, Surrey, Richmond, Langley and White Rock.

Sub Prime Market in BC

2007-09-27T15:08:00.000-07:00

Many people think that the Sub Prime Mortgages will effect our British Columbia Real Estate Market. A recent article by British Columbia Real Estate Association (BCREA) sheds some light on the Sub-prime issue.

At MyMortgageBC.com only a very small percentage of the business that we do is ever considered a candidate for sub-prime. As mortgage brokers we always try obtain a mortgage for our clients through a conventional lender.

Sub-prime primer

Sub-prime mortgages are mortgage loans to borrowers who have tainted or bad credit histories. While the terms and conditions of sub-prime mortgages can vary widely, one common form offers an introductory two-year term interest rate before resetting to a much higher interest rate (the combination of the index rate plus a margin).

In Canada, a prime mortgage is known as a conventional mortgage; Canadian prime mortgages are comparable to US prime mortgages. A home-buyer with a down payment less than 20 per cent (high ratio mortgage) needs to secure mortgage insurance like the kind provided by Canada Mortgage and Housing Corporation (CMHC). Conventional and high ratio mortgages in Canada and the United States use similar underwriting practices. However, sub-prime underwriting is far less comprehensive south of the border, creating a higher risk. US sub-primes don’t require mortgage insurance.

The benefit to the borrower is that the initial two-year period allows them to build credit and, as long as home prices rise quickly enough, the increase in equity allows them to refinance with a prime mortgage instead of suffering the consequences of the interest rate reset.

Mortgage funds for sub-primes are typically raised from investors. Sub-prime portfolios are often repackaged according to risk and resold. The so-called credit crunch is a result of the inability to raise funds from investors in light of sharply rising defaults. The most popular mortgage-backed securities in Canada are pooled mortgages that are fully backed by mortgage insurance from CMHC.

Approximately 20 per cent of US mortgage origination’s are of the sub-prime variety. Falling home prices combined with a wave of interest rate resets have dramatically increased the number of American borrowers in arrears and facing foreclosure.

The US mortgage industry is different than Canada’s when it comes to sub-primes. Canadian sub-prime mortgages represent less than 5 per cent of mortgage origination’s, and less than one in four of them have more risky variable rates. While US home prices are falling on average, home prices in Canada continue to rise. The economic fundamentals in Canada remain strong.

The impact of the US sub-prime problem likely won’t directly impact BC home-buyers. Prime or conventional mortgage funds in Canada are not facing problems with liquidity. US sub-prime defaults are expected to peak in the first quarter of 2008, as the largest number of interest rate resets will occur at that time. Longer term, lower US consumer confidence has the potential to indirectly impact BC households through a possible reduction in the quantity of BC’s exports and slow growth in tourism.

If you any questions regarding obtaining a mortgage don't hesitate to contact Brent Irving at 604-764-6336.

Housing starts in Metro Vancouver are down five per cent

2007-09-20T10:10:00.000-07:00

VANCOUVER BC, Sep 22, 2007 - According to the Canadian Mortgage and Housing Corp. (CMHC) housing starts in Metro Vancouver are down five per cent so far this year compared to 2006.

Construction of multi-family units, however, were up about five per cent in the seven months to the end of August, offsetting a 30 per cent drop so far in starts of single detached houses.

Total new units started in the region was 12,723 in the first eight months of the year, compared to 13,437 in the same 2006 period.

Multi-family units made up more than three-quarters of the new starts.

Vancouver starts are down by one third so far this year to 2,051, and Surrey’s are down 22 per cent to 2,466. Multifamily units made up more than 80 per cent of Vancouver units and more than 60 per cent of Surrey’s.

MyMortgageBC.com note: We are a mortgage broker serving Vancouver and Surrey BC and the rest of the Lower Mainland. Please contact us if you have any questions regarding property financing or mortgages.

How Does an Appraisal Work?

2007-09-07T10:07:00.000-07:00

MyMortgageBC.com note: The most common approach for estimating residential values for mortgage purposes is the comparison approach.

An appraisal is an estimate of the current value of the property (the 'subject property'), using one or both of the following techniques;

The majority of residential appraisals use the market value comparison approach, comparing recent sales of similar properties ('comparables' or 'comps' in real estate jargon) and adding and subtracting the differences in value of the same features in the subject property. For example, if a house of the same size on the same street and in the same condition as the subject property recently sold for $200,000, but this 'comparable' had a triple garage and a finished basement and the 'subject' does not; the appraiser calculates the market value of these features (say, $12,000 in total) and deducts this amount from $200,000, giving an 'adjusted value' of $188,000. This is usually done with at least three 'comparables' and either averaged or the middle ('median') value used.
A supporting measurement of value used by many appraisers is the "depreciated cost" approach, whereby the land value is estimated and added to an estimate of the depreciated building value. Where there are few comparables available, relatively more weight might be given to this method.

MyMortgageBC.com is a mortgage broker located in the Vancouver, Surrey area serving all of the lower mainland of British Columbia.

Getting a Pre-Approved Mortgage

2007-08-29T18:25:00.000-07:00

Getting pre-approved for a mortgage

Once you've decided that you want to be in a home of your own, it only takes a few minutes for us to pre-approve your mortgage amount. Apply for a mortgage online or over the phone.

With a pre-approved mortgage:

you know how much you can afford
Many realtors want you to have a pre-approval before they go to work for you
sellers will take your offer more seriously if they know financing is lined up
your mortgage interest rate can be guaranteed for up to 120 days.

We’ll also talk about closing costs, and make sure you have the money you need for the little extras required when purchasing a home, like inspection fees, appraisal fees, legal fees, moving costs, and property transfer tax.

It's important to deal with someone that specializes in mortgages. I'm a mortgage broker in BC and work primarily in the Vancouver, Surrey, White Rock, Langley area. Don't hesitate to give me a call if you have any questions regarding the mortgage process.

How to choose the right Mortgage Broker

2007-08-20T15:42:00.000-07:00

People are becoming more particular when it comes to choosing their mortgage broker. Mortgage brokers in Canada currently write about 33% of the total mortgage business, while in the U.S. mortgage brokers write closer to 70% It would only make sense that the need and advantages of using a mortgage broker will grow. A mortgage broker can often get you a better deal without you having to spend the time going from bank to bank and having to negogiate for the best rate. Canadian mortgage brokers make the mortgage process simple by often offering a low-stress straight forward alternative to borrowing from a bank. Banks and other lenders are much more competitive today, but a more serious threat may be the arrival of new people into the business. While the mortgage broker industry is absorbing a higher than average amount of newcomers, the mortgage consultant industry is also trying to develop an advice-based relationship with its clientele as opposed to a focus strictly on providing the best rate today. Getting GOOD advice and working with an attentive mortgage broker is paramount, given that the other lenders including the big banks, credit unions and alternative financial institutions will routinely offer competitive mortgage rates. It's important for borrowers to question their mortgage consultant, just as they would a prospective real estate agent or any other professional they may employ. Clients can lead the mortgage consultant by having an idea of their home buying objectives and mortgage payments that they feel they can afford. It’s up me, as a mortgage broker to prove that I'm better than a your local bank branch lender.

I'm a mortgage broker located in Vancouver area of BC.

JULY HOUSING SALES CLIMB IN THE FRASER VALLEY

2007-08-07T10:38:00.000-07:00

JULY HOUSING SALES CLIMB IN THE FRASER VALLEY

MyMortgageBC.com note: I'm a mortgage broker in White Rock, Surrey, Vancouver, Langley. Based on this recent press release housing prices remain strong in the Fraser Valley.

August 2, 2007(Surrey, BC) – Sales on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) in July were the second highest on record for that month.

A total of 1,984 sales were processed through the MLS® in July, an increase of 21 per cent compared to 1,635 sales the same month last year, and only a three per cent decrease compared to the strongest July on record, 2,051 sales in 2005.

Jim McCaughan, President of the Fraser Valley Real Estate Board, attributes July’s near record sales to a number of factors. “BC’s economy continues to hum along, Fraser Valley REALTORS® are receiving a strong influx of new listings and some of our clients are feeling a little uncertainty about where interest rates are going. It all adds up to a desire to invest in real estate now.”

The number of active listings in July at 8,376 is 35 per cent higher than July 2006 inventory which sat at 6,200. A total of 3,120 new listings were added to the MLS® in July, compared to 2,657 new listings added in July of last year.

“Average annual price increases remain solid, however we are seeing price increases start to moderate on a month to month basis,” says McCaughan. “Demand is strong for townhomes and apartments in Surrey, Langley, Abbotsford and Mission, which is why we continue to see an increase in both the number of sales and prices for those property types.”

Townhouses in the Fraser Valley averaged $323,259 in July, a 7.1 per cent increase compared to the average price last year of $301,718. Apartments saw the highest July to July increase at 10.8 per cent with the average price going from $198,882 last year to $220,275 this year.

In July, single family detached homes averaged $519,896, an increase of 6.2 per cent compared to last year’s average price of $489,547.

Top Ten Renovation Paybacks

2007-08-01T16:35:00.000-07:00

Top Ten Renovation Paybacks

Top 10 Renovation Return on Investment

The real estate appraisers’ top 10 reno projects with the best value per dollar spent.

(The potential percentage payback per dollar invested is in brackets)

Painting and decorating, interior (73%)
Kitchen renovation (72%)
Bathroom renovation (68%)
Painting, exterior (65%)
Flooring upgrades (62%)
Window/door replacement (57%)
Main floor family room addition (51%)
Fireplace addition (50%)
Basement renovation (49%)
Furnace/heating system replacement (48%)

Want the mortgage process to go quick & painless?

2007-07-13T14:51:00.000-07:00

If you come across that great real estate deal and need to close quickly it's a good idea to be prepared ahead of time. If you're looking for a fast approval you should have certain documents on hand to make things go smoothly. Also, make sure you deal with a mortgage broker that takes care of all requirements quickly - i.e. appraisal, copy of offer, lawyer handling transaction etc..

Some key documents that all lenders require:

Recent Notice of Assessment from the CCRA after your income tax has been filed. This is the blue letter you receive after you've filed.
A recent pay stub and a letter from employer
Financial Net worth overview showing assets and liabilities.
If self employed, proof of ownership in a company.
Proof of Down payment. All lenders require that you show a 90 history and provide proof of source of funds for any large deposits.

Keep these items in a central spot so that you can locate them quickly. Having these documents easily accessible will make the mortgage experience a lot less stressful for you. You don't want to miss a great opportunity over some missing paperwork.

Canada's Mortgage Industry Associations release Real Estate Fraud Brochure for Consumers

2007-07-10T13:37:00.000-07:00

VANCOUVER, B.C., July 9 / - Canada's four mortgage industry associations have
announced the release of a joint Real Estate Fraud brochure. The brochure is
designed to increase consumer awareness of real estate fraud issues and will
be available on the associations' websites and from individual members.
The brochure describes common types of real estate fraud including
fraud-for-shelter and fraud-for-profit through identity theft and document
forgery. Consumers are provided with detailed information on the many steps
they can take to prevent becoming a victim of mortgage fraud. The brochure
also explains what consumers should do if they think they are victims of
identity theft or real estate fraud.
In a joint statement, the Chairmen of the Alberta Mortgage Brokers
Association, the Canadian Association of Accredited Mortgage Professionals,
the Independent Mortgage Brokers Association of Ontario and the Mortgage
Brokers Association of B.C. said:

<< "While real estate fraud is still quite rare, it can have a significant impact on those who are affected by it. This brochure gives consumers the comprehensive information they need to avoid becoming a victim. It also provides helpful tips on who to contact for assistance if consumers think they are victims of real estate fraud." >>

The document can be found on the following websites:

Alberta Mortgage Brokers Association - www.amba.ca
Canadian Association of Accredited Mortgage Professionals - www.caamp.org
Independent Mortgage Brokers Association of Ontario - www.imba.ca
Mortgage Brokers Association of British Columbia - www.mba.bc.c

Brent Irving notes: More and more lenders are requiring borrowers to obtain title insurance to help protect against mortgage fraud. If you are a victim of mortgage fraud the cost to recover could be upwards of $100,000 if not more. Another great reason to deal with a mortgage broker who understands the mortgage process. If you are interested in the services of a mortgage broker in White Rock BC please don't hesitate to contact me.

Rising Interest Rates Take a Bite Out of Consumers Household Budgets

2007-07-06T14:15:00.000-07:00

VANCOUVER, BC, July 6, 2007 - With an anticipated increase in the Bank of Canada rate July 10th, coupled with increases in fixed rate mortgages this year already, consumers may need to re-evaluate their household budgets.

Even a rise of a few basis points could affect homebuyers and those renewing their mortgage as they are surprised by the impact on their wallets. According to the Canadian Real Estate Association, the average home price in all major markets rose in May 2007 with an average price for a home in British Columbia reaching $454,962. This translates into larger mortgages for those in the market for a new home. Scott Hannah, President of the Credit Counselling Society, the non-profit debt solutions service, says their counsellors see people every day that struggle to balance their budget to meet housing costs. "For many home buyers the continued rise in housing costs is a challenge. The rise in prices in conjunction with the increase in mortgage rates creates a big concern as people try to sustain their lifestyle and for some, keep their home."

"A homeowner with a $250,000 mortgage could see their payments rise by almost $150 per month for every percentage point increase in the interest rate," notes Hannah. "That could create havoc with their monthly budget, not to mention the thousands of dollars extra in interest they will pay over the life of their mortgage."
As interest rates rise, it is a good opportunity for homeowners to re-evaluate their spending. "We recommend that people keep a budget by listing all the monthly expenses, including mortgage, taxes, insurance, food and utilities and resist the temptation to purchase additional items such as gifts, vacations and new furniture on credit," suggests Hannah. "When a single item like the mortgage payment increases it is important to review your budget and determine where modifications can be made rather than dipping into a line of credit or using credit cards to supplement your income."

It's always important to consider the services of a Vancouver BC mortgage broker so that you insure that you're getting the best rate and the lowest payment possible. Mortgage brokers also can approve people that have been declined by their bank.

BMO predicts that the Bank of Canada to raise rates twice this summer

2007-07-04T17:47:00.000-07:00

BMO predicts that the Bank of Canada to raise rates twice this summer

The Bank of Canada will boost interest rates twice this summer, propelling the Canadian dollar to soar to new 30-year highs, the Bank of Montreal (TSX:BMO) predicts.

The BMO Capital Markets report forecasts that despite recent dampening signals, the central bank will tighten monetary policy for the first time in over a year starting with a 25 basis point hike next week, and further turn the screw on Sept. 5.

This will elevate the bank's key lending rate to 4.75 per cent from the current 4.25 per cent, a move that will not only add fuel to the already soaring loonie, but increase the cost of borrowing for both businesses and homebuyers taking out mortgages.

"The loonie would easily fly above 96 cents US," said the report written by economists Michael Gregory and Benjamin Reitzes. "But while a test of parity is possible, we judge that it's not probable."

The Canadian dollar closed up 0.16 of a cent to 94.46 cents US on Wednesday, the highest since early June, 1977.

In recent weeks, many economists have been softening their hard predictions that bank governor David Dodge will raise rates significantly this year.

After warning in May that the Canadian economy was overheated and interest rates stubbornly holding well above the bank's two per cent target, the bank has tempered its comments of late, including suggestions that the loonie's flight may not be justified by the fundamentals.

Recent economic data has also been weaker than expected, including last week's gross domestic product report showing zero growth in April, and core inflation cooling to 2.2 per cent in the same month, from 2.5 per cent in March.

But the BMO economists say May's consumer price index, when it is released in two weeks, will again show inflation at problem levels. And although growth stalled in April, interest-sensitive sectors such as home and auto sales remain strong, suggesting that interest rates are too low to provide a necessary check on Canadians' spending.

The other factors the central bank will consider, say the economists, is unemployment at a 33-year low, capacity pressures in the economy and sluggish productivity that is contributing to a near 16-year high increase in labour costs.

"The fact is we're coming off an economy that was operating well above capacity and building inflation pressures, the fact that we've had a few weak numbers is not going to stop the bank from what I think is really re-normalizing rates," said Gregory.

"Inflation has been above the bank's target for nine months in a row and it will soon be 10, so sooner or later, the bank is going to have to step in."

Gregory said two events might move the bank from following through on the second tightening measure in September - the loonie rising faster than expected, and the U.S. economy falling flat over the summer months.

"This summer we'll start to see the peak of headwinds blowing in both the housing and mortgage markets, so if the U.S. economy tumbles badly, it could get the bank thinking twice," he said.

The BMO report also predicts that the U.S. Federal Reserve will keep U.S. interest rates on hold indefinitely, but that both England and the European Central Bank will raise rates this summer.

Based on what the BMO economists are saying, there is no better time than now to be pre-approved for a mortgage. I can offer a 4 month mortgage rate guarantee. Act now before rates go up.

Mortgage Rates to Drop for the First Time in 3 Months

2007-06-19T12:41:00.000-07:00

Mortgage rates are dropping for the first time in more than three months, as bond yields fall.

Royal Bank announced Tuesday that it would be chopping its mortgage rates across the board by up to a fifth of a percentage point, effective Wednesday. TD Canada Trust and Bank of Montreal followed soon after and other banks are expected to do the same.

A five-year fixed mortgage will be 7.24 per cent, down from 7.44 per cent, the first major drop in mortgage rates since early March.

Just last week, Royal Bank led the banks in raising mortgage rates for the fourth time in four weeks.

But a week ago, bond yields were higher, and it is in the bond market where financing for mortgages is arranged.

The 10-year Government of Canada bond was yielding 4.63 per cent on Tuesday. That's a drop of a tenth of a percentage point from last Tuesday.

When bond yields drop, mortgage rates usually follow.

As a mortgage broker I the rates I get are fully discounted so we'll have to wait to see if the discounted rates drop.

First National Offers Mortgage Insurance

2007-06-19T11:41:00.000-07:00

First National Offers Mortgage Insurance

First National Financial LP, the largest non-bank provider of single-family residential mortgages in Canada, launched its Self-Insured Mortgage this week. It is meant to be a low-cost option to CMHC's high-ratio mortgage insurance. With a First National Self-Insured Mortgage, qualifying home buyers can shave 0.40 percent off the one-time mortgage insurance payment. The First National insurance is tailored to Canadians whose down payment is five percent of the purchase price. On a $250,000 mortgage, for example, qualifying home buyers with a First National Self-Insured Mortgage will save $1,000 more than they would if they obtained their mortgage through a lender requiring mortgage insurance, according to First National. First National's Self-Insured Mortgage is distributed through mortgage brokers across Canada

Mortgage Rate Update June 14, 2007

2007-06-14T12:05:00.000-07:00

Canadian Mortgage Rate Update June 14, 2007

Yes, Canadian mortgage rates are on the rise in anticipation of the July Bank of Canada meeting where it is fully expected that they will raise the prime rate.

1 Year Fixed 5.60%
2 Year Fixed 5,65%
3 Year Fixed 5.70%
4 Year Fixed 5.95%
5 Year Fixed 5.79%
7 Year Fixed 6.05%
10 Year Fixed 6.15%

Best variable rate is Prime -.90% (5.10%)

CMHC: Spring Vacancy Rates Low Across British Columbia

2007-06-06T11:36:00.000-07:00

Canada Mortgage and Housing Corporation: Spring Vacancy Rates Low Across British Columbia

VANCOUVER, BRITISH COLUMBIA--(June 6, 2007) - Apartment vacancy rates in more than half of British Columbia's cities and towns were below one per cent in April according to Canada Mortgage and Housing Corporation's (CMHC's) Spring Rental Market Survey(1). Vancouver's vacancy rate was 0.9 per cent, slightly higher than Victoria at 0.8 per cent and Kelowna at 0.7 per cent. Higher rental vacancy rates in the more resource-dependent regions pushed up the provincial average to 1.2 per cent in April.

"A number of factors are behind the low vacancy rates," said Carol Frketich, BC Regional Economist at CMHC. "These include job gains among young people, a low unemployment rate attracting people to the province, and a widening gap between the cost of renting and the cost of carrying a mortgage."

On the supply side, there has been very little purpose built rental started in the province during the past five years. The secondary rental market, which includes condo apartments and secondary suites, for example, has been the main source of supply during this period. Vacancy rates and rents which include secondary rental accommodation are collected for Vancouver, Kelowna and Abbotsford in CMHC's Fall Rental Market Survey conducted each October.

CMHC's Rental Market Report, British Columbia Highlights, is available for free at www.cmhc.ca\housingmarketinformation. Highlights include:

- Average two-bedroom rent approaches $900 per month.

- Availability rate (reflects vacant units and units for which notice has been given) sits at 2.2 per cent

Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.

(1) In our analysis, we have avoided making comparisons between the results of the April 2007 rental market survey and the October 2006 survey. A key reason for this is that changes in rents, vacancy rates, and availability rates between the spring and the fall may not be solely attributable to changes in rental market conditions; they could also reflect seasonal factors. For example, if more people tend to move in the spring than in the fall, it could have an impact on vacancy and availability rates as well as the level of rents. Alternatively, in centres where there are a significant number of university students, vacancy and availability rates could be higher in the spring if students move home for the summer.

To the extent that these types of seasonal variations exist, comparing results from the spring and fall Rental Market Surveys could lead to incorrect conclusions about trends in rental market conditions. To avoid this, we have limited our analysis to the results of our spring 2007 Rental Market Survey and comparing these results for different centres across Canada. In spring 2008, when we have results from our second spring Rental Market Survey, we will be able to extend our analysis to make year over year comparisons.

The Rental Market Report, British Columbia Highlights is available on the CMHC Web site: Regional Economist http://www.cmhc-schl.gc.ca

Bank of Canada to Increase Rates?

2007-05-29T11:40:00.000-07:00

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

2007-05-25T13:17:00.000-07:00

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

2007-05-23T15:40:00.000-07:00

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

2007-05-23T12:25:00.000-07:00

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?

2007-05-21T07:03:00.000-07:00

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

2007-05-15T07:23:00.000-07:00

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

2007-05-12T18:30:00.000-07:00

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?

2007-05-07T15:00:00.000-07:00

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

2007-05-01T13:53:00.000-07:00

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.

Sales to Decline, Home Prices to Keep Rising

2007-04-29T18:16:00.000-07:00

Sales to Decline, Home Prices to Keep Rising

BCREA releases inaugural Housing Forecast

Vancouver, BC – April 26, 2007. The British Columbia Real Estate Association (BCREA) released its first semi-annual Housing Forecast report today. The report contains forecasts and analysis of the British Columbia economy and housing markets, including detailed forecasts by home type of the province’s twelve real estate board areas.

“Market forces have realigned,” said Cameron Muir , BCREA Chief Economist. “Some potential home buyers are now finding themselves at the wrong end of a price-led affordability squeeze, and home sales are forecast to edge down as a result.” MLS® residential sales are forecasted to dip 3 per cent to 93,600 units in the province in 2007, and a further 4 per cent to 89,500 units in 2008. The ten-year average is 77,811 units.

“A more balanced market is emerging in the aftermath of less frenetic buying activity and an increase in residential listings,” added Muir. The supply of active listings in the province increased 27 per cent to 32,879 units in March compared to the same month last year. “More balance between supply and demand will mean less upward pressure on home prices,” said Muir. The average MLS® residential price in the province climbed 18 per cent to 0,963 in 2006. This year, the average MLS® residential price is forecast increase a more modest 8 per cent to 2,000, and a further 7 per cent to 0,000 in 2008.

“Strong economic fundamentals will underpin housing demand through 2008,” noted Muir. “Robust labour demand is forecasted to keep job growth high and unemployment low. In addition, wages and salaries, and personal disposable income are forecast to rise well above the inflation rate.”

BC housing starts are forecasted to decline 7 per cent to 33,900 units in this year and a further 6 per cent to 32,000 units in 2008. While new home inventories remain at low levels, capacity constraints are inhibiting the ability of many BC home builders to increase production.

A complete copy of BCREA’s Housing Forecast is available here:

http://www.bcrea.bc.ca/economics/forecasts/2007-04 Housing Forecast.pdf

MyMortgagebc.com story

Don't sign away your Life (style)

2007-04-25T09:46:00.000-07:00

Everyone has different lifestyles needs and spending habits, so when it comes to financing a mortgage no one calculation works for everyone. To put it another way, there�s the amount you�re qualified to borrow and then there's what you can actually afford. What�s the difference? It depends on your lifestyle. A quality mortgage broker (like me) will help determine whether or not a mortgage is affordable and what impact, if any, it will have on your life style.

A great way to help determine what kind of mortgage would fit your lifestyle is to do up a monthly budget. A budget can be simple and shouldn't really take you all that long to go through. A budget will determine your current monthly cash flow, and then a projected cash flow after you factor in all the realistic costs of homeownership.

Down payment requirements being lowered

2007-04-21T09:57:00.000-07:00

Down payment requirements being lowered
VANCOUVER April 21 — Canada's big banks are applauding new legislation that lowers the required down payment for mortgages.

The federal government said Friday it is lowering the minimum down payment requirement for mortgage default insurance from 25 per cent to 20 per cent. The new legislation is part of Bill C-37, expected to be proclaimed next week.

Bank of Montreal says home buyers could save an average of $2,500 in insurance premiums, based on an average home price of $300,000.

“We see a number of customers scrambling to meet the 25 per cent down payment, in order to avoid paying the insurance premium,” said BMO vice-president Cid Palacio. “These changes will allow those home buyers to reduce their down payment and get into their new home faster.”

The new limit also affects individuals who intend to refinance their mortgages.

Royal Bank of Canada said a recent survey it did found 39 per cent of Canadians have borrowed against the equity of their home, by either refinancing their mortgage to a larger amount, or by taking out a home equity line of credit.

“Now, with refinancing at 80 per cent, we're making an extra 5 per cent equity available to our clients for their financing needs,” said Catherine Adams, RBC's vice-president of home equity financing.

Under the existing Bank Act regulations, which have been in place for 40 years, a bank cannot provide a mortgage loan for more than 75 per cent of the value of the property, without having the customer purchase mortgage insurance. Bill C-37 raises the loan-to-value ratio requiring mortgage insurance from the current 75 per cent to 80 per cent.

MyMortgageBC.com note: This is an important development in the mortgage industry. We haven't seen changes in the bank act for 40 years and times have changed in regards to mortgages and home ownership and it's important for the government to recognize this. Bill C-37 will go a long way in helping the average Canadian get a mortgage on their home. The only people that will be concerned will be CMHC, Genworth and AIG insurance because now they'll only be collecting insurance premiums on 80% financing rather than 75% financing.

Mortgage Rates for April 16, 2007

2007-04-16T11:07:00.000-07:00

Here are the best mortgage rates effective April 16, 2007.

Current Bank Prime Rate 6.00%

1 yr 5.30%
3 yr 5.35%
5 yr 5.24%
7 yr 5.65%
10 yr 5.75%

Variable Prime -.90%

Most fixed rate mortgages moved up slightly last week with the increase in long term bond rates.

5 tips for young people wanting to buy their 1st home

2007-04-10T17:47:00.000-07:00

Buying your first home as a young person can be one of the greatest things you can do for your long term financial health. I want to share 5 tips for people that are under the age of thirty that will help you get the best deal for your house. The better your credit, the easier it is to get financing for your first home.

Establish 3 credit accounts and ALWAYS pay them on time . Never allow the balance to go above 60% of the credit limit. It is better for you if you have the credit for at least 24 months.
Save until you have at least 5% of the purchase price to cover closing costs.
Don't take a loan for a cool car or a big screen TV. These are assets that a guaranteed to depreciate anyway.
Don't co-sign loans for friends. This can lead to trouble and not only for your credit.
Look for a great starter home possibly with suite income which is very common in the Lower Mainland.

Bonus tip: Use a knowledgable mortgage broker to help you get the best rate and to help explain the entire home buying process from start to finish. : )

Mortgage interest rates are on their way up

2007-04-10T10:55:00.000-07:00

It looks like the other lenders will follow the Royal Banks lead and raise their mortgage rates. BMO has announced an increase and others to follow tomorrow. If you want to ensure you get the lower interest rate make sure that your application goes in today.

RBC Royal Bank Raises Mortgage Rates

2007-04-09T12:50:00.000-07:00

RBC Royal Bank raising mortgage rates by one-fifth of a per cent

April 9, 2007

RBC Royal Bank says it will raise a wide range of interest rates by one-fifth of a percentage point, effective Tuesday.

The Royal, Canada's largest bank, said its mortgages with terms of one year to 10 years will each rise by 0.20 percentage point. A five-year mortgage, for example, will have a posted rate of 6.64 per cent.

Rates for Royal's six-month mortgages will rise by only five-100ths of a per cent. Open six-month mortgages will have a posted rate of 8.2 per cent while six-month closed mortgages will have a posted rate of 6.5 per cent.

Royal Bank is the first to announce interest rate increases in this stable interest rate environment. If I notice other institutions following RBC's lead I'll be sure to post.

Current Mortgage Rates April 9, 2007

2007-04-08T14:10:00.000-07:00

Current Canadian Mortgage Rates

Bank Prime Rate 6.00%

1 Year Fixed 5.10%
2 Year Fixed 5.15%
3 Year Fixed 5.19%
4 Year Fixed 5.19%
5 Year Fixed 5.09%
10 Year Fixed 5.55%

Best Variable Rate Prime -.90%

Building a House in the Lower Mainland?

2007-04-07T15:49:00.000-07:00

If you're considering building a custom-built home in the lower mainland you can pick up some tips at the Greater Vancouver Home Builders’ Association seminar April 14.

What’s New in Homebuilding takes place from 9 a.m. to 4 p.m. at 15463 104 Ave.

An effort of GVHBA and Canada Mortgage and Housing Corporation, the seminar will highlight the latest innovations in construction technology, design, indoor air quality and green initiatives. Roofing materials and installation will also be reviewed.

Cost is $60 (plus GST) per person or $100 per couple, and includes lunch and coffee breaks. Space is limited to 50 people and pre-registration required. Call 604-588-5036.

Vancouver Real Estate Channel & Website

2007-04-07T09:25:00.000-07:00

Many people are surprised to find out that Vancouver has a TV Channel on the Novus Network for the sole purpose of advertising Vancouver Real Estate 24/7

It only broadcasts in Downtown Vancouver on Channel 80 so their focus is obviously the condo market. If your not downtown you can watch it on the Web. It is supported by selling advertising to realtors and condo developers.

Real Estate Channel Downtown Vancouver

6 Easy Ways to Improve Your Credit Score

2007-04-05T13:30:00.000-07:00

6 ways to improve your Credit Score

Want to improve your credit score? Here are 6 tips that will help any credit score improve. Having a good credit score is very important when applying for a mortgage. A good credit score will make it easy to get great rates, 100% financing, a great selection of lenders wanting to do business with you.

1) Pay your bills on time.

This one is obvious but propably the most important factor when calculating your credit score. One big problem of being late is that it reflects on your credit bureau for at least 7 years. The longer you pay your bills on time, the better your score. If you have collections like parking tickets, if you pay it off, it will stay on your record for 7 years. Do yourself a long term favor and don’t let a bill get to the collection stage if you can help it.

2)Keep revolving credit balances low.

If you use credit cards or other types of revolving credit, either pay it off at the end of the month or try to keep the balances lower than 70% of the approved limit. This is what the credit bureau calls credit utilization. Having a low credit utilization will help your credit score. High balances will negatively impact your credit score. Don’t close unused credit cards thinking it will improve your credit score.

3)Limit your credit.

If you have a short credit history, do not open a number of new accounts in a short period of time. Opening a number of new accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of additional credit information. Having many credit enquiries within a short period of time can make you look risky to lenders.

4)Be focused when you go for credit.

Do your credit shopping for a given loan within a focused period of time. The formulas that are used to calculate your credit score can actually distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.

5)Manage your credit responsibly.

Apply for new credit only when you need it. Avoid the temptation to open the junk mail that comes in saying you’re pre-approved for a new credit card. We you recieve those offers burn them. Assuming you make your payments in a timely fashion, having credit cards and installment loans will raise your credit score. Closing a credit account does not make it go away and will still show up on your credit report, and may be considered by the score.

6) Get credit

Someone who has no credit is seen as a greater risk than a person who has credit and manages that credit responsibly. If you have no credit it can make it challenging to get a mortgage or a loan. If you're having trouble getting approved for credit consider a fully secured credit card

Find out how the credit bureau calculates your credit score at MyMortgageBC.com

The ING Unmortgage

2007-04-05T12:38:00.000-07:00

I'm sure you've heard the clever ING Direct ads that advertise the Unmortgage. I've had a thorough look at the ING unmortgage and can honestly say that the unmortgage is just a clever advetising campaign. If you do an 'apples to apples' comparison with the other mortgages that lenders offer you would find that ING Direct's Unmortgage offering is more or less a new way to advertise a mortgage without really offering anything innovative . I like ING Direct and have had good experiences with them but I think it's important to have a look at your own situation and determine the best mortgage strategy from there.

A Great Alternative to MLS.ca

2007-04-05T10:19:00.000-07:00

HousingMaps.com offers an interesting alternative to MLS.ca. Housingmaps.com combines Google Maps with Craigslist and provides user the ability to see the exact house location along with the price based on whats listed on the real estate for sale section on Craigslist.org. The real estate for sale section on Craigslist.org has both realtor's listings and FSBO's making it a great place to visit if your in the market for a new house.

What will they think of next?

The Difference between a Variable and Fixed Rate Mortgage

2007-04-04T10:09:00.000-07:00

Many people are confused between the difference of a fixed rate mortgage and a variable rate mortgage. Don't fret the difference is fairly straight forward.

If you choose a fixed rate mortgage you get pay the same mortgage rate for the term you choose. This takes the fear out of rising interest rates and can make it easier to budget for most people. If you choose a 5 Year fixed mortgage at 5.09% is simply means that the rate you'll be paying will be 5.09% for the 5 years. If rates go up you're protected but if rates go down you have to stay with your term until the 5 years is up.

If you choose a variable rate mortgage the rate is tied to the Bank Prime Rate which is determined by the Bank of Canada. If the Bank of Canada lowers the Prime rate you benefit from a lower rate and if the Prime rate goes up so does your mortgage rate. Most lenders offer you the choice to convert from a variable rate mortgage to a fixed rate mortgage with no penalty.

At the time of this post most analysts believe the Bank of Canada won't be raising the Prime rate anytime within the near future and possibly even lower it.

Mortgage Supplement in The Province

2007-04-03T16:37:00.000-07:00

If you are a reader of the Province….a couple of great articles in the Mortgages: A Special Supplement section. I encourage you to check it out.

1) “Canadians prefer fixed over variable” …RBC did a survey and it suggests even though people know the will save $ they still prefer fixed terms

2) “BMO stops using outside broker, expands own sales force” ….they believe offering different rates at the branch level vs broker level was confusing to the customee.. BMO doesn't mention it owns MCAP which is one the most popular mortgage lenders through mortgage brokers.

3) “Housing central to boomers’ needs”…..boomers are using the equity in their homes to renovate, purchase vacation homes, help their kids purchase, purchase investment properties and invest in the stock market - sounds like a lot of opportunity for mortgage brokers.

4) “Subprime woes stay south” …..it seems we are still ultra conservative on our lending criteria – compared to the US anyway

There's a New Lender in Town

2007-04-02T17:49:00.000-07:00

There's a new lender called Abode Mortgage Corporation and it's mortgage underwriting department and head office are located in Vancouver BC. Abode will be offering it's mortgages to the public through mortgage brokers rather than an expensive branch network. Any time a new lender comes in to the market it's great news for the consumer because hopefully as a new lender they'll offer some innovative mortgage products and great rates.

Mortgage Broker vs Bank Mortgage Rep

2007-04-02T12:39:00.000-07:00

I'm often asked whats the difference between a Mortgage Broker and a Bank Mortgage Specialist. There are many differences.

Most banks now have a mobile mortgage sales force. These mobile mortgage reps can go by various names such as Mortgage Development Manager or Mobile Mortgage Specialist etc. Below are just some of the differences between a Mortgage Broker and a Bank Mortgage Rep.

1) The mortgage rep from the bank can only provide with options sold by their institution which means that if you are declined or they don't have the product you need, too bad for you. A Mortgage Broker like myself will always get the lowest rate or if you're declined on your first application we have access to many different lenders that may be interested in your deal.

2) If the bank the mortgage rep works for doesn't offer the lowest rate for the term you're interested you lose out. A mortgage broker has access to the best deals.

3) Mortgage rep is employed by the bank and is not required to go through the training required to become a mortgage broker. In British Columbia all mortgage brokers are required to take the Mortgage Brokers offered through UBC.

4) Mortgage Brokers are not employed by any one bank therefore are advise is unbiased.

The above are just some of the reasons why a mortgage broker can offer you value added services the Bank Mortgage Specialist cannot. Keep in mind that the above list in not conclusive and just some of the differences.

BMO Announces a NOT So Special 5 yr Fixed Rate

2007-04-01T10:36:00.000-07:00

BMO's best 5 year fixed rate is 5.38% and this is considered their special offer. Any mortgage broker can easily get their clients a fixed 5 year rate at 5.09% with similar features that the BMO mortgage offers. I'm glad I'm not a client of BMO's getting their "special offer" rate. BMO recently stopped using mortgage brokers to help build their mortgage portfolio and I think it's clear now that the reason is to charge a higher rate to their clients. It's unfortunate but further demonstrates the value of a good mortgage broker.

Rent vs Buying a home

2007-03-31T22:35:00.000-07:00

The Government of Canada's office of Consumer Affairs website has an excellent online calculator that provides a straight forward comparison of renting or buying a home. If your undecided as to whether or not real estate is the right investment for you? I encourage you to check out the calculator.

Renting vs buying a home in Canada calculator

Affordable Condo in White Rock

2007-03-31T19:42:00.000-07:00

A realtor has a fully renovated studio condo for sale for $155,000 in the City of White Rock. City of White Rock offers shopping, beaches, fine dining and some of the best weather in the Lower Mainland.

The following is a basic breakdown the cost of owning the above condo with a $0.00 downpayment.

Monthly Mortgage Payments $780.00 per month. (based on 40 year amortization)
Monthly Strata fee $130.00
Taxes $125.00

Based on the numbers above you can own your very own condo in sunny White Rock where you'll be within walking distance to the beach, shopping and fine dining all for less than $1,100 per month. This would be ideal for a single person that likes the thought of real estate ownership rather that paying their landlord.

To qualify for a $0.00 downpayment mortgage at fully discounted rates CMHC requires you to have good credit and job stability. If you don't meet CMHC's requirements there are alternatives that are available only through mortgage brokers like myself. :)

If you think you'll never be able to own real estate there's a good chance you haven't considered a scenario like the one above.

Vancouver Housing Market Summary First Quarter 2007

2007-03-29T14:41:00.000-07:00

Vancouver's housing market continued to show its strength in the first
quarter, supported by sustained in-migration and growth across the city. New
inventory was unable to satiate the demand of purchasers. The market remained
firmly in the sellers' favour, with multiple offer situations occurring,
although less frequently than last year. The condominium market in Vancouver
was particularly active in the first quarter, attracting the interest of a
variety of purchaser groups such as baby boomers, first-time and move-up
buyers and investors.

MyMortgageBC.com Bottom Line: Mortgage rates continue to remain low which helps first time home buyers enter the housing market.