Vancouver Home & Interior Design Show

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

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

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

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

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

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

April MLS Statistics:

The number of residential units sold in B.C. on the Multiple Listing Service® (MLS®) declined 11% in April compared to the same month last year, with 8,623 units sold. Residential sales dollar volume reached $4.1 billion this month, a 1.4% drop compared to the same month last year, while the average residential home price reached $478,044, an increase of 10.7% compared to April 2007.

Greater Vancouver: The number of residential units sold in April reached 3,308, a drop of 5% compared to the same month last year, while dollar volumes increased 3.6% to $2 billion. The average residential home price reached $615,304 this month, an increase of 9% compared to April of last year.

Fraser Valley: The number of units sold in April declined 0.5% compared to the same month last year with 1,687 units sold. Dollar volumes increased 2.3% to $740.9 million however, while the average residential home price increased 2.7% compared to April of last year reaching $439,188.

Chilliwack: April sales declined 11% to 267 units, while dollar volumes reached $87 million, a 0.4% drop compared to the same month last year. The average residential home price continued to climb in April reaching $325,824, an 11.9% increase compared to April of last year.

Victoria: Sales in April reached 730 units, a 14.2% decline compared to the same month last year. Dollar volumes also dropped 10.4% to $361 million, while the average residential home price reached $494,204, a 4.5% increase compared to April of last year.

Vancouver Island: The number of residential units sold in April reached 824, a decline of 11.8% compared to the same month last year. Dollar volumes declined 1.3% reaching $287.7 million, while the average residential home price rose 11.9% to $349,106.

Okanagan (including South Okanagan): The Okanagan and South Okanagan markets recorded 857 units sold in April, a decrease of 26.2% compared to April of last year, while dollar volumes declined 14.1% to $360 million.

Kamloops: Dollar volumes dropped 23.3% compared to the same month last year reaching $79.8 million in April. The number of sales dropped 35.3% with 249 units sold, while the average residential home price jumped 18.6% compared to April of last year reaching $320,608.

BC Northern: Residential sales continued to decline in April with 399 units sold, a drop of 13.6% compared to April of last year. Dollar volumes increased 3.5% to $90.2 million, while the average residential home price recorded a 19.9% increase reaching $226,094.

Kootenay: The number of residential units sold in April reached 227, a 33.4% drop compared to the same month last year. Dollar volumes also declined 24.5% reaching $64.9 million, while the average residential home price increased 13.4% compared to April of last year hitting $285,944.