With the “busy real estate market”, The Real Estate Board of Greater Vancouer, was recently recorded a membership of 12,200 realtors.

Last recorded in South Surrey/White Rock, we found approximetly 1,700 realtors working our market each year, with approximetly 450, licensed local realtors. 

“Not all Realtors are full time”. Some are in the business, along with another full time job. 

Therefore, when looking to hire a realtor, to buy or sell your next property, we suggest you possibly check their credentials to ensure you are receiving the best possible representation and advice to ensure a smooth transaction and sound investment. 

For full article visit: www.mortgagebrokernews.ca/market-update/this-province-has-seen-a-surge-in-realtors-199955.aspx

Visit: www.WalkerRealEstate.ca or call 604.889.5004

South Surrey/White Rock Real Estate

During current market conditions, with many multiple offer situations on homes, sellers will only consider offers where the buyers can produce documentation from there broker or finance company to confirm they have a Mortgage Pre-Approval. 

A number of finance companies, will not review a buyer’s income or downpayment documents, until after a offer is in place. 

Solution: work with an experienced Mortgage Broker, or ensure your finance company provides you a mortgage approval in writing before you start the process of looking for a home. 

The seller will take your offer more seriously, and maybe even at a lessor price. 

Visit: www.mortgagebrokernews.ca/market-update/mortgage-preapprovals-demanded-by-home-sellers-19985.aspx

Cell: 604.889.5004

Email: infor@walkerrealestate.ca

www.WalkerRealEstate.ca

Bank of Canada Announces Rate

HomeNews

by Justin da Rosa09 Sep 2015

The Bank of Canada announced Wednesday morning it will maintain its target for the overnight rate at 0.5%.

“The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent,” the bank writes in a release. “The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.”

According to the Bank of Canada, its economic stimulation efforts are “working their way through the Canadian economy.”

“Inflation has evolved in line with the outlook in the Bank’s July Monetary Policy Report (MPR). Total CPI inflation remains near the bottom of the target range, reflecting year-over-year price declines for consumer energy products,” the bank writes. “Core inflation has been close to 2 per cent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector-specific factors.”

The global economy – especially in China – continues to be a concern for the central bank.

“This has contributed to heightened financial market volatility and lower commodity prices,” the bank writes. “Movements in the Canadian dollar are helping to absorb some of the impact of lower commodity prices and are facilitating the adjustments taking place in Canada’s economy.”

While the overall export picture is still uncertain, says the bank, the latest data confirm that exchange rate-sensitive exports are regaining momentum.

Meanwhile, risks to financial stability are evolving as expected, hence the decision to hold the target at its current rate.

StatsCan addresses recession

by Will Ashworth | 01 Sep 2015

Statistics Canada is reporting that GDP fell in the second quarter, confirming fears that the economy was in recession for the first half of 2015.

StatsCan says the economy contracted at an annual pace of 0.5% in the second quarter of the year which is slightly less than analyst estimates and also lower than the 0.8% decline in Q1.

June ended the GDP’s five-month losing strak with a 0.5% gain. Most notable was a 3.1% increase in natural resources extraction suggesting oil prices could be near a bottom.

While this contraction over the first half of the year isn’t anywhere near the contraction during the Great Recession of 2009 — an 8.7% decline in first quarter and 3.6% decline in second — it does provide interesting conversation for leaders of the three major political parties on the road to the October 19 election.

The recession conversation continues.

Low mortgage rates to boost BC housing sales to 100,000

by Steve Randall | 19 Aug 2015

Sales through the MLS system in British Columbia are set to reach 100,000 units this year, for only the third time. The BC Real Estate Association says that demand for homes has not been so strong since 2007; the record was in 2005 when 106,300 residential MLS sales were recorded. “While rock-bottom mortgage interest rates and BC’s nation leading economic growth are underpinning demand, consumer confidence is the key driver of the near record activity,” said Cameron Muir, BCREA Chief Economist. The average sales price in the province is forecast to climb 10 per cent to $626,000 this year. An increase in new construction activity and a higher proportion of condominium purchases is expected to limit growth in the average home price to 2.5 per cent in 2016.

Market Commentary

With the Bank of Canada’s latest rate cut now well established attention is turning to what happens next.

Along with this month’s rate cut the Bank of Canada lowered its economic growth forecasts. It does not expect to see the economy return to full capacity until early 2017, indicating it is unlikely there will be a rate increase before then.

The United States will influence what happens next. The U.S. Fed has indicated it hopes to raise interest rates in the fall. An increase there, is a de facto reduction here, making it unnecessary for a further BoC cut in September, as some have suggested.

Canada’s big banks did trim their variable rates but, as with the January cut, not by the full 25 bps made by the central bank. Of course we are still in prime real estate season and the banks may be leaving themselves some room for further discounts once things slow down again.

Fixed rates will likely move once the effects of the reduced overnight rate make their way to bond yields

Brokers call for standardized penalties

It may be an exercise in futility, but brokers are once again calling for consistency in the way banks calculate mortgage penalties.
 
“We need regulation for penalties – every lender calculates them in a different way,” Paul Sidhu, president of Safe Mortgages told MortgageBrokerNews.ca. “I had one client that was hit with a $28,000 penalty at (one big bank) and we called the ombudsman and they couldn’t explain how it was calculated. TD wouldn’t explain it either.”
 
Sidhu went so far as to file a FSCO complaint against the ombudsman and eventually, the bank reassessed the penalty and dropped it to a much lower figure.
 
Penalty calculations are a perennial concern for mortgage brokers, whose clients are often hit with hefty bills. And there isn’t enough consistency across the board, most say.
 
“There are so many different ways lenders calculate penalties – certain lenders will use the posted rate and not the discounted rate that was offered to the client,” Narish Maharaj of Dominion Lending Centres Mortgage Mentors recently told MortgageBrokerNews.ca. “Others will subtract the client rate from the T BILL rate and subtract the client’s rate to determine the penalty.”
 
But is reform in the future?
 
One broker isn’t so optimistic.
 
“I think it’s wishful thinking because there isn’t enough public outcry,” Kent Farnsworth of Mortgage Alliance Simply Mortgages told MortgageBrokerNews.ca. “Interest rate differential penalties are the most frustrating – I think (a penalty of) three months’ interest is sufficient, but not all lenders calculate it that way.”
 
Still, the growing outcry – and action like Sidhu’s against the ombudsman – may make a slight difference

Borrowing is tougher for self-employed

Homebuyers looking for a mortgage are finding conditions are getting tougher if they are self-employed, at a time when there is an increasing number of self-employed Canadians. Solid credit scores are multiple years in business are still not making it easy for business owners to buy their own home. Chad Oyhenart, a Vancouver-based mortgage broker at Dominion Lending Centres told The Financial Post that conditions are tougher as the result of rule changes over the past 7 years: “They just want to make sure that they’re not putting Canadians into situations that they can’t get out of, so that we don’t end up being the U.S.” Jeff Mark of Spin Mortgage also sounded a supportive note for tighter regulations commenting that they were too loose in the past. He says that the self-employed may have to take larger incomes from their businesses, meaning more tax to pay, in order to qualify for mortgages. 

Sorry Mr Oliver, we don’t believe you

Analysts predict lower rates for 2 years

Reacting the Bank of Canada’s cut in interest rates many economists are predicting they will have to stay low for some time. While talk of cheaper mortgages may be in focus for homeowners and buyers the wider economic picture painted by the BoC is one of sluggish growth for Canada this year. Two quarters of negative growth (0.6 per cent in Q1 and 0.5 per cent in Q2) means a technical recession and the bank cut its expectation for this year to just above 1 per cent with next year and 2.5 per cent in 2016 and 2017. That contrasts with growth in the global economy of 3 per cent for this year and 3.5 per cent in the following two years. Additionally Fed chair Janet Yellen said Wednesday that the US economy is on target for a rise in interest rates.

The cut in interest rates has already hit the loonie, although that should help exports which are a key part of the plan to boost the economy. Some analysts are skeptical as to whether Canada can achieve even the downgraded GDP forecasts and are calling for interest rates to stay low, and perhaps go lower, during the next two years.