7 Feb

Mortgage Rates Effective Today

General

Posted by: Kimberly Walker

Brought to You By Dominion Lending Centers,

Subject to Change Without Notice, Qualifications Apply.

5 yr Fixed Insured Special 3.59%

Variable Rate Mortgage Decreased: 3.35%

5 year VRM Insured P-0.60%

5 yr Fixed Insured Special 3.59%

Purchase ( Conventional)     Refinance Rates             Rental

4 yr 3.79%                                            3.84%                    3.94%

5 yr 3.69%                                            3.74%                    3.84%

7 yr 3.99%                                            4.04%                    4.14%

10 yr 4.39%                                         4.44%                    4.54%

7 Feb

Morneau taking close look at return to 30-year insured mortgages, homebuilders’ association says

General

Posted by: Kimberly Walker

The federal government appears to be considering a budget announcement that would allow first-time homebuyers to obtain 30-year insured mortgages, up from the 25-year limit now, according to the Canadian Homebuilders’ Association.

Such a move would represent a change in direction after more than a decade of measures by federal Conservative and Liberal governments since the 2008 recession aimed at cooling housing markets and encouraging Canadians to take on smaller mortgages.

While the Bank of Canada continues to express concern about high household debt, politicians are also getting an earful from younger Canadians – a potentially key voting demographic – who can’t afford to enter the housing market.

Finance Minister Bill Morneau’s coming budget will be the government’s last before the scheduled October election. The minister recently said he is looking at home affordability issues for millennials, but he has not publicly speculated on potential policy options.

Over the past two weeks, top officials from the Prime Minister’s Office and Mr. Morneau’s office met with Kevin Lee, the chief executive of the Canadian Home Builders’ Association, to discuss potential budget measures.

Association spokesman David Foster said there is clear interest from government in the request put forward by housing industry groups to bring back 30-year insured mortgages.

“They keep wanting to talk with us about it, and it wouldn’t cost them a dime, so I’ve got to think those are somewhat positive signals,” Mr. Foster said on Wednesday.

The association discussed the matter earlier this week with Mr. Morneau’s chief of staff, Ben Chin. They also met last week with Sarah Hussaini, a policy adviser in the Prime Minister’s Office.

Pierre-Olivier Herbert, a spokesperson for Mr. Morneau, declined to comment, saying the office does not speculate on potential budget measures.

The association has had several meetings with officials and MPs over the past year in the run-up to the 2019 pre-election budget and recently narrowed down its wish list to just two items: a return to 30-year insured mortgages for first-time homebuyers and an easing of stress test measures that restrict access to non-insured mortgages.

Mr. Foster said officials are expressing interest in both options, but especially the 30-year mortgage proposal because it can be enacted unilaterally by the Finance Department. Changes to the stress test would require the co-operation of the Office of the Superintendent of Financial Institutions, an independent regulator that just this week defended the existing rules.

MP Francesco Sorbara, who chairs a Liberal caucus on housing affordability issues that formed last year and is a member of the House of Commons finance committee, did not dismiss the 30-year mortgage proposal as a way of helping first-time homebuyers.

“It is one idea of many that is worthy of consideration, with the caveat that we maintain a secure and healthy housing market and that individuals are not overextending themselves,” he said.

Paul Taylor, president and CEO of Mortgage Professionals Canada, is also advocating for the 30-year mortgage option and said he was “encouraged” by Mr. Morneau’s recent comments about addressing affordability for millennials. However, Mr. Taylor said he has not received any indication from federal officials that a decision has been made.

The date of the budget has not yet been announced. The House of Commons only sits for one week in March, which makes the week of the 18th a likely window for the minister to deliver the budget. However, there is also speculation in Ottawa that the budget could be released in the final week of February.

Homebuyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance. This is offered by the Canada Mortgage and Housing Corp. – a Crown corporation – as well as two private insurers.

 In 2008, after briefly allowing insured mortgages with a 40-year amortization period, then-Conservative finance minister Jim Flaherty reduced the maximum period to 35 years. The Conservative government lowered the maximum to 30 years in 2011 and acted again in 2012 to bring it to 25 years, where it has stood since. The moves were promoted as a way to prevent high-risk borrowing.

Shortly after the Liberals formed government in 2015, Mr. Morneau announced further mortgage tightening rules that December by doubling the size of the required down payment for insured mortgages for the portion of a home’s value from $500,000 to $1-million.

Mr. Foster, of the home builders’ association, said restricting insured 30-year mortgages to first-time homebuyers should prevent consumers from getting in over their head.

Millennials have most of their working years ahead of them and would likely pay off the mortgage sooner than 30 years, he said.

“We don’t think it involves any additional risk,” he said. “These are prime borrowers.

5 Feb

New Rates Coming Down the Pipeline

General

Posted by: Kimberly Walker

New Rates Coming Down the Pipeline

Brought to you by: Kimberly Walker

Dominion Lending Centers, Valley Financial

 

 

 

  Term   Posted Rate  
1 YEAR 4.69%
2 YEAR 3.94%
3 YEAR 3.79%
4 YEAR  3.64%
5 YEAR FIXED 3.54% (>80.01% LTV)
3.89% (75.01-80% LTV)
  3.79% (70.01-75% LTV
 3.74% (65.01-70% LTV)
3.69% (Under 65% LTV)
5 YEAR ARM PRIME – 0.85% (>80.01% LTV)
PRIME – 0.55% (75.01-80% LTV)
PRIME – 0.70% (70.01-75% LTV)
PRIME – 0.75% (65.01-70% LTV)
 PRIME – 0.80% (Under 65% LTV)
 

 

Posted mortgage rate summary subject to change. Refer to matrices.
5 Feb

Inventory rises and apartment sales take lead during modest January market

General

Posted by: Kimberly Walker

SURREY, BC – Overall inventory levels continued to recover as market activity remained moderate through January.

The Fraser Valley Real Estate Board processed 784 sales of all property types on its Multiple Listing Service® (MLS®) in January, a 2 per cent decrease compared to sales in December 2018, and a 35.2 per cent decrease compared to the 1,210 sales in January of last year.

Of the 784 total sales, 250 were residential detached homes, 190 were townhouses, and 257 were apartments. This is the first time in the Board’s history that apartments have outsold residential detached homes during a month.

“This remains a challenging environment for buyers and sellers alike,” said John Barbisan, President of the Board. “Factors such as reduced buying power, changing expectations for pricing, and a recovering inventory are all having an impact.”

There were 5,995 active listings available in the Fraser Valley at the end of January, an increase of 9.9 per cent compared to December 2018’s inventory and an increase of 51.3 per cent year-over-year.

Additionally, 2,609 new listings were received by the Board for the month, a significant increase compared to December 2018’s intake of 978 new listings and a 24.7 per cent increase compared year-over-year.

“Historically, January months start slowly, and 2019 is following that trend,” explained Barbisan. “Pricing for each of our major residential property types remains either stable or decreased in most areas. This isn’t necessarily indicative of what’s to come in 2019, but it reinforces the need to be aware of what’s happening in your local market in order to be effective.”

For the Fraser Valley region, the average number of days to sell an apartment in January was 45, and 44 for townhomes. Single family detached homes remained on the market for an average of 55 days before selling.

HPI® Benchmark Price Activity

  • Single Family Detached: At $954,100, the Benchmark price for a single family detached home in the Fraser Valley decreased 1.2 per cent compared to December 2018 and decreased 3.3 per cent compared to January 2018.
  • Townhomes: At $522,100, the Benchmark price for a townhome in the Fraser Valley in the Fraser Valley decreased 1.8 per cent compared to December 2018 and increased 0.5 per cent compared to January 2018.
  • Apartments: At $409,000, the Benchmark price for apartments/condos in the Fraser Valley decreased 2.2 per cent compared to December 2018 and increased 1.2 per cent compared to January 2018.

Full package:
http://www.fvreb.bc.ca/statistics/Package201901.pdf

24 Jan

MPC calls out feds negative impact on housing market

General

Posted by: Kimberly Walker

The association that represents more than 11,000 Canadian mortgage professionals says that Ottawa’s policies have harmed the housing market.

In its annual State of the Mortgage Market report, Mortgage Professionals Canada says that the federal government’s efforts to cool rising home prices and demand has created cascading consequences and pressures.

“We are seeing downward trends and/or depressions in areas like the resale market, the outlook on employment in the housing construction sector, and a continued decline in rental vacancy rates,” said Paul Taylor, President and CEO of Mortgage Professionals Canada. “Federal policy changes are disqualifying potential first-time homebuyers and creating immense pressures on the rental market which is in turn driving rental prices higher. It is a spiralling problem.”

Taylor says that MPC continues to support the aim of ensuring that mortgage borrowers are able to make future payments but he says changes to the existing rules should be made.

“Our report illustrates that a more reasonable stress test level and lending restriction reforms are now needed to strike a better balance for borrowers and policymakers, improving housing affordability and Canada’s economy,” he said.

Improper levers
The report, available in full at mortgageproscan.ca, highlights that when improper levers are used, the housing market continues to be depressed, leading to wider impacts.

“While the government has been focused on borrowers and interest rates, the reduction of activity in the housing market and extremely low rental vacancy rates will impact not only costs to first-time homebuyers and all renters, but also impact employment and the overall economy,” explained Will Dunning, Chief Economist for Mortgage Professionals Canada and author of the report. “As a result of these policies, the economy will be weaker than it needs to be.”

18 Jan

More rate cuts expected following RBC move

General

Posted by: Kimberly Walker

Canada’s largest bank may have sparked a rate war by offering customers a “special offer” 5-year mortgage rate of 3.74%.

The reduction of 15 basis points is likely to be met with similar deals from other major lenders; many alternative lenders have already reduced rates but the Big 5 have been holding back.

“Banks could’ve cut fixed rates weeks ago. The reason they held out is because they can,” RateSpy.ca founder Rob McLister told CBC News.

With bond yields falling following the BoC’s dovish tone on interest rate rises, mortgage rates have been expected to fall and some lenders are already offering rates as low as 3.29% for a 5-year FRM.

The RBC cut is notable as it’s the bank’s first cut since 2017. It’s also notable for its minimal size, which will likely have a corresponding impact on the market – unless further cuts follow.

“RBC is the largest mortgage lender in Canada, so whenever they move their mortgage rates we can expect that the other four banks will follow suit,” James Laird, president of CanWise Financial told RateHub.ca. “We anticipate that the other big banks will soon have a publicly posted rate of 3.74% as well.”

RateHub.ca calculates that with a $400,000 mortgage a typical homeowner would save $32 a month on their $2,080 monthly payment.

11 Jan

Rate Update: Friday, Jan. 11, 2019

General

Posted by: Kimberly Walker

One of the over 90 Lenders, we work with
at Dominion Lending Centers, Valley Financial Specialists
Prime Rate: 3.95%
Chartered Bank Benchmark Rate: 5.34%

E &O.E.
• 120 day commitment period
• Specials are for new business only and are not available for ARM conversions
• Rates and or discounts are subject to change without notice
• Conventional pre-approval rates: Fixed 3.79%* or ARM P-.25%*
• Conventional deals will be underwritten using the greater of the Chartered Bank Benchmark Rate or the contract rate + 2%
• Insured pre-approval rates: Fixed 3.79% or ARM P-.75%
• Insured deals will be underwritten using the Chartered Bank Benchmark Rate
• For conventional rentals, there is no rate premium for amortization > 25 years
• Conventional Rental ARM: P – .10%*

17 Dec

5 year weekly feature rates

General

Posted by: Kimberly Walker

Insured Purchase/Transfer: Fixed 3.69% or ARM P-.85%

Conventional Purchase/Transfer/Refinance (up to 80%, < 30 year am)

Fixed 3.89% or ARM P-0.55%

Insured Stated Income (65.01 – 90%): Fixed 3.69% or ARM P-.85%

 

Brought to you by:

 

Cindy and Kimberly Walker

Dominion Lending Centres

Valley Financial Specialists

778-828-6186 or info@@WalkerRealEstate.ca

www.WalkerMortgages.ca

12 Dec

Ban renovictions. Let all condo owners rent out their units, B.C. task force says

General

Posted by: Kimberly Walker

Rental housing group makes 23 recommendations for improving B.C. rental system

B.C. should end nearly all renovictions and prevent strata corporations from banning rentals in condo developments, the province’s task force for rental housing has recommended.

The task force presented the government with 23 recommendations Wednesday, meant to offer more protection for tenants and security for landlords.

At the very top of the list is stopping renovictions — the practice of forcing out tenants so the landlord can perform renovations. Task force chair and NDP MLA Spencer Chandra Herbert said renters need to be offered a choice.

“If the tenant wants to stay and is willing to accommodate the renovations, they should be allowed to stay in their home,” Chandra Herbert told reporters.

He said the landlord of a 10-storey tower in his riding, Vancouver-West End, recently refurbished the entire building while people were still living in the suites.

“It’s definitely doable. A lot of people do it,” Chandra Herbert said, adding that some evictions may still be necessary in situations like necessary seismic upgrades.

Overall, he said the report strengthens enforcement and penalty options for both tenants and landlords, to make sure everyone is treated fairly.

In an attempt to address a shortage of rental housing, the report recommends that no condominium strata should be allowed to prevent owners from renting out their units.

“We think that housing is needed and we think that landlords should be able to rent out their own homes,” Chandra Herbert said.

No change to rules on pets

The task force also recommends creating a provincewide rent bank for low-income people and investigating how to give landlords in remote communities cheaper access to bailiffs for evictions.

But the report does recommend sticking with the status quo on certain issues

That includes the question of pets in rental units.

“The task force was not persuaded that requiring all rental housing providers to allow pets would be fair for landlords or for renters who want or need to live in pet-free buildings,” the report said.

The task force also recommends keeping the current system of tying rent increases to the tenant, rather than to the home. This means landlords would still be permitted to raise their rents above the annual allowable increase when the current tenant moves out.

Housing Minister Selina Robinson thanked the task force for a “thorough and thoughtful job” of listening to the concerns of landlords and tenants across the province, as she accepted the recommendations Wednesday.