Dear ,
Are you enjoying the games? No matter where you go, there are activities to enjoy ... you can FEEL the excitement in the air!
Many of our Realtor friends predicted a down turn in business during the Olympics ... but WE are open for business as usual, even if we do sneak away now and again to "participate."
We found a few "fun" things whilst wandering around the city ... check them out below. We'd LOVE to get your comments!
Our BIG NEWS is that we have been nominated for not just one but TWO categories of the CMP Canadian Mortgage Awards.
We are very proud to have been nominated as finalists for Best Customer Service from an Individual Office AND for Best Internet Presence. We have worked very hard on both fronts and have our fingers crossed for a GOLD medal in both categories this coming April. You can find more information about the nominations in the blog.
Sincerely,
Mike Averbach and Justin Blacklock
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Canada Changes The Rules on Mortgages
 On April 19 the Canadian Government will implement three major rule changes to hopefully circumvent a housing-price bubble and keep homeowners from becoming overextended.
These new rules apply to government-backed, insured mortgages only.
1. 5-Year Fixed Qualification Rates
Borrowers will now need to qualify using a 5-year fixed rate regardless of what term they choose. If you want a 1.95% variable rate, for example, you will need to show that you can afford payments at a higher fixed rate such as 3.89% for 5 years. (check Blog for more info)
2. 90% Maximum Refinancing
No longer will borrowers be able to refinance their homes to 95% of it's value. 90% will be the new refinance maximum.
(check Blog for more info)
3. 80% Maximum Insured Financing On Rental
Those buying non-owner occupied rental properties will need to put down 20% to get an insured mortgage, as opposed to the 5% down previously required. However, This rule does not apply to multi-unit owner-occupied homes with rental units such as duplexes, triplexes and basement suites (legal or not). (check Blog for more info)
Undoubtedly there will be a rush of applications to beat the April 19th deadline.
We expect a surge of calls and hopefully we'll be able to meet the
demand provided that lenders do not adopt the new rules early (prior to
April 19th) as history has shown with the 40 year and zero down
abolishment.
We think the rule changes listed above are somewhat conservative! The
minimum purchase down payment requirement for owner occupied homes has
not changed (5%) nor has the maximum amortization of 35 years (yet!).
Nevertheless, if the market frenzy does not abate, we wouldn't be
surprised to see changes to these latter two criteria.
We'll just have to wait and see what this does to our crazy Vancouver market. Our realtor referral sources are reporting constant multiple offer situations that are driving prices above asking. Take a look at the most recent market report from our friends at Macdonald Realty ... who would have thought that luxury properties are still selling!
Mike Averbach, AMP
Mortgage Planner
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Neat Stuff From the Games
If you've been taking in any of the activities associated with the 2010 Games, you've probably run into some "interesting," "neat," or even "curious" stuff.
Here are a few of our finds!
You too might wonder WHY Ontario is giving away Vancouver Tap Water! Hmmmmm.
Do you think this artist is making a comment on the Vancouver Housing Market?
Personally, these mailboxes are a BIG improvement over the old ones. Hope they keep them after the Olympics.
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