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Dear ,
For many people, purchasing their home is the biggest single investment they make.
You should keep on top of what is happening with your investment and
seek to pay it off as quickly as you can. AND In this marketplace one
of the options you MAY have is refinancing at a lower rate. Find out if it makes sense for you to lower the
life and cost of your mortgage by taking advantage of today's low rates. Find out IF you would qualify, or if you are stuck in the gray zone of dropping property values. There is a lot of misinformation going around, and we are happy to be a "reality check" in today's fluctuating market. Be sure to visit our BLOG for more information. IF you have any
comments or questions, please feel free to participate
in our discussion! Did you see the article titled " Fixed-rate mortgage better for first-timers" in last month's Vancouver Sun? The article talks about some of the reasons why a fixed rate mortgage may be the better choice for a mortgage in today's market place. I also answer questions about the difference between a pre-qualified homebuyer and the pre-approved buyer, and how that may affect your home purchase. In
case you missed it, the article does have some great information, so here is a link to the story.
Sincerely,
Mike Averbach and Justin Blacklock
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February Market Update
Here's a market update from
our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason
Low, Sandra Ens and Jenny Stephanson.
Welcome to the Macdonald Realty Market Update
Each month, we provide you with valuable information to help you in
your decisions related to real estate. It is my intention that armed
with this knowledge, you will be able to make a more informed choice of
whether to buy, sell, or hold.
Return of the Bear
2008 saw the end of the long Bull market run in real estate across
Canada. Since their peak in the spring of 2008, housing prices have
seen steady declines in all asset classes and almost all areas. Average
prices across Canada have fallen more than 12% from a high of $320,000
to the current level of $280,000. In areas where prices climbed more
rapidly during the bull run, prices have seen a more sudden softening.
For instance, in the Lower Mainland, benchmark prices (or the price of
an 'average' house) have thus far fallen 16%, from a high of $771,321
in April '08 to the current level of $648,421. Other areas throughout
Western Canada have followed this same pattern, albeit at different
rates of depreciation.
Surprisingly, the rapid fall in prices, while not welcome news for
owners, is a good indicator of a healthy market. A market that
artificially maintains high prices is an illiquid one that will see few
sales. Conversely, a market that produces quick price adjustments will
return to 'balanced' conditions more rapidly.
Time to Jump In?Go to the February Market Update in our BLOG for more information and advice on dealing with Vancouver's current housing marketplace.
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B.C.'s Plummeting Home Values Affect
Eligibility for Lower Interest Rates
February 18, 2009, Vancouver BC - With interest rates at an all time
low, mortgage brokers are being inundated with calls from optimistic homeowners
looking to refinance at lower rates. Unfortunately a 10 to 15 per cent
plunge in B.C.'s real estate market over the past year means refinancing to
take advantage of lower interest rates is impossible for some. A recent study
by independent broker firm Averbach Mortgages found only two out of 10 clients
actually qualified for refinancing.
"If you purchased your property with 10 per cent down or less in the last
couple of years, you're out of luck," said Mike Averbach with Averbach
Mortgages. "Every day we are contacted by homeowners who want to take advantage
of the lower rates. What they need to consider is how much they owe on their mortgage and what is their current home value? "
A combination of decreasing home values and over financing have left many
homeowners in a position of negative equity, making them ineligible for lower
interest rates. Homeowners who purchased with 15 per
cent down or more could still be eligible for the lower rates, but
Averbach cautions them to look into the
cost benefit. Legal fees and penalties for breaking mortgage agreements can
outweigh the benefit of switching to a lower interest rate.
"There's no point in getting our clients all excited about greater savings when
in fact it can cost them more to break their current terms," he explained. "A
good broker should be able to suggest what is the most equitable in each
situation."
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Vancouver homeowners interested in refinancing, should contact their current
lender to find out if they are eligible for the lower
rates and if refinancing will result in savings.
For more details on how this affects you be sure to visit our BLOG. We are looking forward to your comments and questions!
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Averbach Mortgages
604-710-2550
We save you time. We save you money. We get you the you the best mortgage terms at the best interest rates possible.
If you are:
- purchasing your first home
- refinancing
- renewing an existing mortgage
- investing in real estate
- consolidating your debts
- experiencing current or past credit issues
We have the solutions that work for you.
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Mike Averbach
Averbach Mortgages |
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