It's no secret that our calendars reset in September. Bet back into the routine with a little help from Larry & myself. Interest rates have slipped up, the market is stable, NOW is the time to get back it. Call us/email/text anytime.
The Victoria Real Estate YouTube. Enjoy.
The weather is beautiful - don't forget to look for your perfect home - open houses are at OpenHousesVictoria.ca
We are having opens this weekend on three of your great listings - 909 Deal Street in Oak Bay; 2201 Arbutus Cove Lane, near the University and 1520 Cedar Glen in Mt. Doug area - all 2:00 to 4:00.
Don't forget the "car show" in the Inner Harbour this weekend. Also, support the "Busker Party downtown"
Summer in Victoria - fun. Stay safe.
Fixed rates which have jumped from our historic lows of the 2.79% range for 5 years seemed to have settled this week right around the 3.29-3.39% mark which if you ask ANYONE who has owned a home for longer than 10 years will attest this is still CHEAP money!
As rates have come up a bit we will be "shoe-horning" more of our First Time Homebuyers into their financing scenarios (moreso than we already have been!) as CMHC is tweaking yet again the terms and conditions to qualify for HIGH RATIO insurance. These latest "adjustments" while seeming small may actually have as an big impact as last years' Amortization adjustment from 30 - 25 years.
Here are some of the details which will be effective December 31st 2013 though a few lenders are already implementing these: NOTE: Genworth (the other mortgage insurer) are saying the may not follow these changes.....)
* Unsecured credit lines & credit cards: For these debts, “No less than 3% of the outstanding balance” must be included in monthly debt payments. IN THE PAST we have been able to simply use the minimum payment on the credit card statement or Interest-only payments which are no longer considered on credit lines.
* Heating costs: Lenders must now obtain the “actual heating cost records” of a property. When no such history is available, the heat expense used in debt ratio calculations “must be a reasonable estimate taking into consideration factors such as property size, location and/or type of heating system.” That’s why some lenders have now moved to a set heating cost formula, like:
- (square footage x $0.75) / 12 months
Compared to past methods (which entailed flat heating costs, like $100/month), the new guidelines can double or triple the heating cost that must be factored into debt ratios on larger properties, and reduce it on smaller ones.
* For guarantor income: A guarantor’s income must not be used in GDS/TDS ratios “unless the guarantor…occupies the home and is the spouse or common-law partner of the borrower.” THIS could be a massive game-change as typically we have always been able to use Mom or Dad's income to debt service the First Time Homebuyer that didn't quite.
Here is the link to the official CMHC advice on these changes which again are effective December 31st 2013: http://www.cmhc.ca/en/hoficlincl/moloin/rean/rean_032.cfm
BOTTOM LINE is advise your clients of these changes or ensure they seek advice from an experienced Mortgage Professional as once again the proverbial clock is ticking and may make for a brisk Fall and Winter sale season
Questions? Email or give me a shout!
DLC - Prime Mortgage Works Inc.
Come One, Come All to our 100th Birthday Bash!
See you Saturday 3-5pm at Centennial Park!
Wow, take a look. It is interesting buying a property now isn't so bad! Get your pre-approval before your buy. Callum is very knowledgeable and an excellent Mortgage Broker.
Professional organizing for yourself & others!! Did you know that decluttering your home helps in decluttering your brain. We wish! Maggie will make room for that "decluttering" you may need. Here is her website. In need, give her a call.
There is a new trend popping up all over the place. It's fun, it's exercise and you can look as fabulous as you want.... (this can't be) It's the Dance/Walk!
Dance/Walk is exactly what it sounds like and until it really catches on and someone comes up with a cleaver name for it we're going with Dance/Walk.
Check out this hilarious video that explains it all! A Royal LePage event is even happening in Ontario that involves a 5km Dance/Walk.
Did you know we are hosting a Dance event this year too. It's doesn't end in a Dance/Walk but you will get to try Zumba and Hip Hop. Check out the Facebook event for more information.
If you live in a Strata or are thinking about living in a Strata, you might find this link helpful.