| Rate Watch
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Term Best Rate
1 yr Fixed 2.49%
3 yr Fixed 3.40%
4 yr Fixed 3.69%
5 yr Fixed 3.79%
Variable Prime -.4%
Prime is 2.25%
*some conditions may apply
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Did you know?
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The five Olympic rings
represent the continents of the world- North and South America, Australia,
Europe, Africa, and Asia. The rings are interlaced to show the coming together
or meeting of the continents at the Olympics.
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 Wow, what an amazing Olympic games!!
I hope you all had a chance to get out and take the games in. I personally am dealing with an Olympic sized hangover. I saw the torch relay in Lynn Valley and West Vancouver. We attended the opening ceremonies, mens gs final and quarter final hockey game. Allison and I also went downtown numerous times and took in the events and fireworks. The games finished great but I am not sure my heart has recovered from the US tying goal. The Bank of Canada kept the overnight lending rate where it is as expected. There is a little more upwards pressure on the rate but most think the rates will stay where they are until late summer or fall. The variable rates have dropped to prime minus .4% so that's 1.85% as of today. Fixed rates are still low so money is still cheap. If you have a variable rate mortgage I still recommend you don't lock in as I see low prime for some time to come. See the Bank of Canada's full announcement here: full articleLots has been said about the changes the government came out with recently regarding changes to mortgage insurance. The changes are: 1. Non-owner-occupied properties must have a 20%
down payment
2. Maximum financing on a refinance is 90% (instead of 95%)
3. Variable rate mortgage qualifications have been standardized. None of these changes are too drastic as refinance to 90% makes sense and we were already qualifying the variables at a fixed rate. The biggest change is on rental properties needing 20% down now. You should have some skin in the game on a rental anyway. Rental property financing is a specialty when you get into multiple properties so I am very fortunate to have a partner Rob MacDonald who specializes in this type of financing.. Check out his article below and feel free to contact him regarding a rental property strategy. Spring time is a great time to start planning a renovation and I am very fortunate to be associated with one of the best in the business. See John Friswell's article below and contact him with any renovation questions or ideas. I am also fortunate to have Philip McKernan as a business associate and he has written a great book on buying property south of the border. See his article below as well.
Enjoy the newsletter!
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Meet John Friswell- Renovator of the year!
Based in North Vancouver, BC,
CCI Renovations is an award winning, design/ build construction company
with decades of combined experience in the construction industry. Specializing
in residential renovations, our goal is to provide excellent value and service
from "rendering to reality." Catering to the high end market on the
North Shore, Vancouver and Burnaby CCI is the current holder of the prestigious
Renovator of the Year Georgie award - a title we have held for the last three
years and are nominated for again this year.
Our team of skilled professionals
includes an in-house designer, construction managers, carpenters and labourers.
We also have an extensive list of suppliers and sub-contractors who all provide
excellent products and services.
John is the Past President of the
Greater Vancouver Home Builders' Association and the past Chair of the Better
Business Bureau of Mainland BC. John currently serves on all three levels
(Local, Provincial and National) of the boards of the Homes Builders'
Association and is the current chair of the Canadian Renovators Council.
CCI is a registered "Built
Green Builder" and holds a licence with the National Energuide Program. At CCI
we strive to find green initiatives for your project. Our aim is to provide
sustainable options at every stage of the construction process, from recycling
packaging and sorting construction waste to using low-flow plumbing fixtures,
high efficiency heating and on-demand hot water systems. CCI strives to help
our clients to create a beautiful, functional and sustainable home.
CCI loves what it does and it shows.
Visit us at www.ccirenos.comor call 604-980-8384 to book your initial free consultation.
John Friswell
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Win a luxury trip for two to Alaska!! Almost all my business comes from referrals and I thank all of you who referred a friend in 2009. The 2009 Grand prize of 2 tickets to the Olympic Closing ceremonies will be drawn on December 10, 2009 so stay tuned. As we will only have the Olympics once, next years prize is a luxury Alaskan Cruise for two. Dates to be chosen by the winner.
Every
mortgage referral that closes between January 1, 2010 and December 31, 2010 earns
you an entry in the draw for a luxury trip for two to Alaska*.
*Some conditions may apply. Promotion valid until Dec 31, 2009
on any mortgage referral made via email, mail or voice directly to Dave
Bruynesteyn. Referral needs to become a funded deal to qualify. This
promotional offer is neither endorsed nor supported by Invis Inc.
E&OE |
SOME OPPORTUNITIES COME ALONE ONCE IN A
LIFETIME!
If you are looking to take advantage of the Real
Estate opportunities south of the border and a strong dollar, SOUTH OF 49
- The Canadian guide to buying residential Real Estate in the United States
is a must read. Whether it's a lifestyle or investment property this ground
braking book is packed with practical information that will save you time,
money and energy.
This book was written by a friend of mine, Philip McKernan and it's a must read for anyone thinking about buying real estate south of the border.
To read more or get a copy click on the link below. South of 49! |
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Buying Rental Properties - How to Make
the Banks Say 'Yes'!
Many Canadians believe that they will be
responsible for financial responsible for taking care of themselves to a
certain degree during retirement. Pensions and Government programs may not be
enough to maintain their current lifestyle. While RRSP's, mutual funds, and
stock market investments can be a reliable vehicle of choice for many, Real
Estate Investments have several other advantages, not available through other
investment vehicles, most significant being the power of leverage.
Consider the following example of $100,000 invested in 2 different
investments and the calculated return. The key difference is that in
Investment #2, the same $100,000 takes advantage of leverage. In this example,
the $100,000 can be used to purchase $500,000 worth of real estate for example
because a bank will allow you to mortgage the other 80% of the investment
cost. Take note of the difference in annual performance, with the final
result in Return on Equity.
Investment #1 Investment#2
(non Leveraged) (Leveraged)
Initial Value $100,000 $500,000
Annual Return 10% 5%
Increased Value $10,000 $25,000
Return on equity 10% 25%
Even if the investment performs half as well, as we see the 5% annual return on
Investment #2, the power of leverage has significantly increased the return on
your original amount invested.
Like any investment,
there are some key factors to consider if considering investment in real
estate.
Have a Strategic
Plan
What are your long
term goals? And will buying real estate assist you in getting closer to, or
achieving those goals? Whether your goal is to create a monthly cash flow from
a portfolio or properties, or to benefit from property appreciation in
economically viable markets across Canada, having a strategic plan will not
only provide direction for you, it will also help to determine the type of
property you will need to focus on.
Understand the
Power of Rental Offset
Every bank uses a different formula to work
how the income from a rental property will be used to qualify you for a
mortgage. Most banks will offset 70 or 80% of the rental income on your
portfolio against your mortgage payments and expenses. If you are choosing the
right properties with positive cash flow, your income can actually increase
after each property your purchase. Many clients, even ones with professional
occupations, assume they may only qualify for 2 or 3 additional properties. In
my experience, most people will run out of capital (aka down payment funds)
before they run out of banks offering to finance another rental.
Work with Professionals Experience in
Real Estate Investing
Whether we're talking about a lawyer,
accountant, mortgage broker, realtor, or insurance agent, be sure the person
has experience with real estate investments.
Having a team of specialists working for you that understand your long term
goals will make the path far easier in the long run.
If you have any questions or want to discuss your revenue property plan please email me at Rob@mortgagedave.ca or call me at 778-686-8326.
Rob Macdonald
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In Conclusion
Now that the Olympics are over we can all get back to our lives. March is when the real estate market typically heats up so if you are buying get on it and if you are selling good luck. If you have a fixed rate mortgage over 5% we should chat to see if we can restructure to let you take advantage of these record low rates.
Sincerely,
Dave Bruynesteyn
Invis
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2008 Sales Excellence winner- Invis BC
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