With the Jan. 31 deadline just around the corner, anyone who still wants to take advantage of the federal government’s popular home renovation tax credit had better hurry.

“The most important thing for people to know is that they still have a week to buy and take delivery of materials that they are thinking of using for renovations,”

Although it is likely too late to get the labour done in time, “anyone thinking of doing anything in their home in the next few months should try to get that material now… otherwise you are really losing out.”

 The home reno tax credit, introduced as a limited-time program in the 2009 federal budget, has proven extremely popular with housing-obsessed Canadians.

For full details google: Home Renovation Tax Credit

Once again, the Bank of Canada announced it would keep the key interest rate at a record-low 0.25 per cent to achieve its inflation target of two per cent.

While the Bank said economic growth in Canada resumed in the third quarter of 2009 and there has been a slightly higher than expected rate of inflation in recent months, it reiterated that the economy is still lagging, particularly due to factors like a strong Canadian dollar and low levels of U.S. demand.

Repeating many of the same projections as its October monetary policy report, the Bank predicted the economy to return to full capacity and reach a two per cent inflation rate in the third quarter of 2011. It forecast the economy to grow by 2.9 per cent in 2010 and 3.5 per cent in 2011.

The next Monetary Policy Report will be released Friday and the next rate announcement will be made March 2.

New data collected by CAAMP indicates homeowners are borrowing less, not more, than they can afford to borrow

Toronto, Ont. (January 14, 2010) – New research using data collected by the Canadian Association of Accredited Mortgage Professionals (CAAMP) from its corporate members strongly suggests that Canadian mortgage lenders and borrowers, including first time home buyers, are being extremely prudent with their borrowing and lending.

Last month, CAAMP surveyed members who issued more than 40,000 mortgage loans totalling $10 billion, which were funded during 2009 (the data is for home purchases only and excludes renewals or refinances of existing mortgages). The dataset represents about one-sixth of total mortgage activity for home purchases in Canada. The research is published in a report titled Revisiting the Mortgage Market – risk is small and contained.

Key findings include:

• 86 per cent of these home buyers chose fixed rate mortgages. This share fell late in the year as variable rates became more attractive (at 2.25 percent compared to 4 percent for fixed rates)
• Among borrowers who chose fixed rates, a significant number opted for longer terms – less than 5 per cent chose terms of two years or less. 20 percent took three year terms, 5 per cent four years, leaving 70 percent with a fixed rate for five years or more
• The vast majority of people who took out their first mortgage last year borrowed less than they could afford to, as their Gross Debt Service (“GDS”) ratios are far below allowed maximums, even at the higher interest rates that are used to qualifying them for their mortgage
• The high share of fixed rate mortgages and low GDS ratios for home buyers are contrary to perceptions that consumers and financial institutions are taking on more risk

“This new research shows that Canadians are assessing their abilities and vulnerabilities,” said Jim Murphy, AMP, President and CEO of CAAMP. “They are being prudent and the vast majority of Canadian mortgage borrowers are not taking on undue risks. They have factored rising interest rates in to their mortgage decisions.”

Will Dunning, CAAMP Chief Economist and author of this new report said that a small minority of homebuyers are cutting it close when it comes to affordability. He stressed that “this dataset is primarily focused on first-time homebuyers who are considered to be most at risk. Each year, about 2.5 to 3 per cent of Canadian households make a first-time home purchase. Our data shows that only a small percentage of them are pushing-the-envelope – about 4,000 households which amounts to a tiny fraction of the 13.25 million homeowners in Canada. For those who borrowed in prior years, risks are even lower.”

Speaking to the stress tests conducted by CAAMP, Dunning said that “the bottom line from the simulations is that even though mortgage payments will probably rise for most borrowers, the increase in their incomes will more than offset the higher payments. All in all, the degree of risk from rising mortgage rates appears to be small and manageable.”

For a copy of the report Revisiting the Mortgage Market – risk is small and contained, please visit: www.caamp.org.

(Surrey, BC) – Results from Fraser Valley Real Estate Board’s
Multiple Listing Service (MLS®) in December reflect the real estate
story of 2009: recovery. “In 12 months, we went from the
worst January in 20 years to the third best December,” said Paul
Penner, President of the Board. “Home buyers took Boxing Day
shopping to new levels with some Fraser Valley REALTORS®
showing multiple homes per day between Christmas and New
Years.” According to Penner, a significant
portion of the 148 per cent increase in activity in December’s
sales, 1,260 compared to 508 in December 2008, can be attributed
to first-time home buyers confident with the current
economic conditions and taking advantage of all-time low interest
rates. “An informal poll of our members in December revealed
40 per cent of home sales were by first-time buyers when it would
normally be in the 25 per cent range.”

The trend overall for 2009 was one of increasing sales,
decreasing inventory and prices rebounding. The Board’s
MLS® processed 16,721 sales in 2009, compared to 13,194 the
previous year, an increase of 26 per cent. However, it received
15 per cent fewer new listings during the same time period –
30,221 in 2009 compared to 35,651 in 2008. Over the year,
the number of active listings for buyers to choose from dropped
by 34 per cent going from 9,960 properties in December 2008 to
6,534 in December 2009. “We’re seeing the combined
effect of fewer homes being listed, which is normal for this
time of year, a flurry of buying activity, plus a decrease in the
number of new homes being built. This has put pressure
on prices in the Fraser Valley, particularly on homes in the
lower to mid-range markets,” explained Penner.
The MLSLink Housing Price Index (HPI) benchmark price for detached homes was $497,732
in December compared to $464,189 in December 2008, an increase of
7.2 per cent. Although prices have gradually recovered, they have not
yet reached the previous benchmark high of $513,798 in
May 2008. The benchmark price of Fraser Valley townhouses in December
2009 was $318,174, a 7.4 per cent increase compared to $296,296 in
December 2008. That price also last peaked at $335,991 in May
2008. The benchmark price of apartments decreased by 0.3 per cent year-over
-year going from $237,786 in December 2008 to $237,157 in
December 2009. It’s previous high was in April 2008, at $260,037.
H O M E L I F E B E N C H M A R K R E A L T Y
White Rock/South Surrey Real Estate
Figures

Len Doray
Managing Partner
HomeLife Benchmark Realty Corp.,
Email: doray@homelifebc.com
Phone: 604-531-1111

Figures based on Fraser Valley Real Estate Board
Multiple Listing Service Statistics

Fabulous 15th floor bachelor unit only $299,000. Perfect get away in White Rock enjoy city and mountain views. Cindy Walker 604-889-5004

Dominion Mortgage Fixed Rates Are Increasing This Evening

More finance companies to follow: Call today for a 120 day rate hold.

• 1 year fixed rate increases to 2.89% from 2.69%
• 2 year fixed rate increases to 3.24% from 3.04%
• 3 year fixed rate increases to 3.84% from 3.54%
• 4 year fixed rate increases to 4.24% from 4.04%
• 5 year fixed rate increases to 4.34% from 4.09%
• 5 year No Frills increases to 4.19% from 3.94%

Thanks, Cindy Walker 604-889-5004

(Surrey, BC) – Results from Fraser Valley Real Estate Board’s Multiple Listing Service (MLS®) in December reflect the real estate story of 2009: recovery.

“In 12 months, we went from the worst January in 20 years to the third best December,” said Paul Penner, President of the Board. “Home buyers took Boxing Day shopping to new levels with some Fraser Valley REALTORS® showing multiple homes per day between Christmas and New Years.”

According to Penner, a significant portion of the 148 per cent increase in activity in December’s sales, 1,260 compared to 508 in December 2009, can be attributed to first-time home buyers confident with the current economic conditions and taking advantage of all-time low interest rates. “An informal poll of our members in December revealed 40 per cent of home sales were by first-time buyers when it would normally be in the 25 per cent range.”

The trend overall for 2009 was one of increasing sales, decreasing inventory and prices rebounding. The Board’s MLS® processed 16,721 sales in 2009, compared to 13,194 the previous year, an increase of 26 per cent. However, it received 15 per cent fewer new listings during the same time period – 30,221 in 2009 compared to 35,651 in 2008. Over the year, the number of active listings for buyers to choose from dropped by 34 per cent going from 9,960 properties in December 2008 to 6,534 in December 2009.

“We’re seeing the combined effect of fewer homes being listed, which is normal for this time of year, a flurry of buying activity, plus a decrease in the number of new homes being built. This has put pressure on prices in the Fraser Valley, particularly on homes in the lower to mid-range markets,” explained Penner.

The MLSLink Housing Price Index (HPI) benchmark price for detached homes was $497,732 in December compared to $464,189 in December 2008, an increase of 7.2 per cent. Although prices have gradually recovered, they have not yet reached the previous benchmark high of $513,798 in May 2008.

The benchmark price of Fraser Valley townhouses in December 2009 was $318,174, a 7.4 per cent increase compared to $296,296 in December 2008. That price also last peaked at $335,991 in May 2008.

The benchmark price of apartments decreased by 0.3 per cent year-over-year going from $237,786 in December 2008 to $237,157 in December 2009. It’s previous high was in April 2008, at $260,037.

Information and photos of all Fraser Valley Real Estate Board listings can be found on the national, public web site www.REALTOR.ca. Further market statistics can be found on the Board’s web page at www.fvreb.bc.ca. The Fraser Valley Real Estate Board is an association of 2,961 real estate professionals who live and work in the communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission.

The bond yields have been rising throughout the holiday season, spreads are at pre August 2007 levels and although Bank’s have not raised rates during the Holidays, MERIX FINANCIAL does anticipate that Bank’s will raise rates next week (perhaps by as much as 20 to 30 bps).  Call Cindy Walker 604-889-5004 for a rate hold and market update of new homes for sale on the market today.

If you or someone you know is looking to purchase a 1st or 2nd home that has obtained “Landed Immigrant Status” within the past 10 years with good previous credit. We at Dominion Lending Centres – Leading Edge can offer mortgages with a 25% to 35% down payment with limited further qualification at best rates with no extra costs. Contact Cindy Walker for full details 604-889-5004
Disclosure: Depending on individual situations further conditions may apply