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New 3 Day Cooling Off Period





Starting in January 2023, a new way to buy real estate will be mandator in BC. It involves a 3 day cooling off period. The recent trend to making an offer to buy residential real estate where there was no subject to financing is going to change. This will be the first of its kind in Canada and involves a 3 day cooling off period after the offer has been accepted so the buyer can back out of the deal.

Sounds simple, but wait there's more. There is a cancellation fee equal to $250 for every $1,000,000 of purchase price, so a $1M home would produce a cancellation fee of $2,500.

Once the offer is accepted the purchaser, would have 3 business days to do their due diligence such as home inspection, review of strata minutes, appraisal, financing, legal etc and if they are not happy they can cancel the deal subject to the penalty.

This is NOT what the provinces regulator not the BC Real Estate Association recommended in terms of steps to take to protect home buyers but it is what the government deemed most appropriate.






















MORE GREAT NEWS FROM MORTGAGE BROKER CHAD DREYER


Hello,


Hope you had a great weekend!


It looks like we may see some great upcoming changes to Insured mortgages in Canada!


There are plans to increase the maximum purchase price for insured mortgages (less than 20% down) mortgages from 1 million to 1.25 million which is great new for Markets like Vancouver where prices are hight and in situations where buyers may be able for a to qualify but could be short on downpayment needed for a purchase would have the option to look at an insured mortgage with a higher price point.


As this develops I will be sure to keep to keep you updated.


Bond yields have hit new highs that we have not seen since Feb 2020 and this is certainly going to put pressure on fixed rates to increase shortly, I have heard some lenders will be announcing rate increases overnight or over the coming days unless bond yields go back down shortly.


Given where bond yields are now, I suggest any clients you are currently working with who may not have a pre approval/rate hold currently that they do so ASAP!


Have a great week.


Thanks,

Chad Dreyer
Mortgage Consultant 

FSCO License: M21000565
604.614.9239
chad@chaddreyer.ca
www.chaddreyer.ca

INTERESTING UPDATE FROM MORTGAGE BROKER CHAD DREYER ON PROMISES TO HELP HOME BUYERS.


Well as we all saw nothing much changed with last months Federal election, however the Liberals now have a fresh slate of policies for housing with hopes of sustainability and assisting first time buyers.


Here is a summary of their key housing promises:


Housing Supply


The Liberals plan to build, preserve or repair 1.4 million new homes if the next 4 years, they plan to do so through the following initiatives:


  • Housing accelerator fund
    • Invest $4 billion in a housing accelerator fund to build 100,000 new middle-class homes by 2024/2025
  • $2.7 billion for the National Housing Co-Investment Fund
  • $600 million for office and retail space conversion to housing
  • A temporary ban on foreign ownership
    • Foreign citizens would be barred from purchasing Canadian housing for the next 2 years, unless its proven to be for future employment or immigration within the proceeding 2 years
  • Anti-Flipping Tax
    • Applicable to properties sold within 12 months of purchase 


Mortgage Qualification Policies 


  • Changes to the First-Times Home Buyers Incentive 
    • Under the new plan participants could choose between the previous shared equity arrangement or now opt instead for a loan that is repayable only at time of sale 
  • Increase mortgage insurance eligibility cap to $1.25 million 
    • This is an increase from the current $1 million
  • Reduce CMHC insurance premiums for new buyers by 25%


Financial Assistance 


  • Tax-Free Home Savings Account
    • This allows Canadians under 40 to save up to $40,000 towards their first purchase, the money can withdrawn tax-free with no repayment requirement
  • $1 billion for rent to own projects 
  • Multi-generational home renovations tax credit 
    • Provide a 15% tax credit of up to $50,000 for homeowners who add a secondary unit to their home for the use of immediate or extended family
  • Double the First-Time Buyer Tax Credit from $10,000 from $5,000


There is definitely a lot of work here with everything the Liberals have proposed above and as we know by the time these come to law they could look much different that proposed above.


I will continue to monitor these and update you if any policy changes are announced.


If you have any questions please feel free to reach out!


Thanks

Chad Dreyer
Mortgage Consultant 

FSCO License: M21000565
604.614.9239
chad@chaddreyer.ca
www.chaddreyer.ca


We are proud to announce that this Oct 28th, 2:00 PM to 4:00 PM we will be hosting an Open House at 5450 - 208 St Langley in Montgomery Gate in the Langley City neighborhood, Langley. This is an opportunity to visit this excellent Apartment for sale in beautiful Langley City.

Please come with any questions you may have. In the meantime you can take a virtual tour of this Langley City Apartment for sale.

As always please do not hesitate to give me a call at 604 530-4141 if I can answer any questions before the open house, or if you would like to book a private showing.

Marleane Maxwell
Home Life Benchmark

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The Bank of Canada met this morning   and elected not to increase their overnight rate meaning that variable rate   mortgage holders will get a break this month following 2 previous increases   in July and September.  The Bank sited increased inflation due to   stronger economic activity and increasing gasoline prices as motivators for   leaving their rate steady.  They expect exports and business investment   to remain strong but did say there was”substantial uncertainty” especially   surrounding the renegotiation of NAFTA.

 The Bank of Canada will meet agin on  December 6th and then again on January 17th. 

For a list of mortgage brokers call me anytime.

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Please note the change for this upcoming openhouse.

We are proud to announce that this Oct 29th, 2:00 PM to 4:00 PM we will be hosting an Open House at #56 WagonWheel Cres in the Tall Timbers neighborhood, Langley. This is an opportunity to visit this excellent House for sale in beautiful Tall Timbers.

Please come with any questions you may have. In the meantime you can take a virtual tour of this Tall Timbers House for sale.

As always please do not hesitate to give me a call at 604 530-4141 if I can answer any questions before the open house, or if you would like to book a private showing.

Marleane Maxwell
Home Life Benchmark

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Example – If You placed a 50% down-payment and secured a 5 year fixed rate at 2.99%, you would have to qualify on a rate of 4.99% (2.99% + 2% = 4.99%) OR the posted benchmark rate.

 This would result in reducing the mortgage amount you would qualify for, therefore reducing the potential purchase price for a new home. On average this would bring down your buying power by approximately 14%-20%.

 Buying power before and after January 1, 2018

 Buyers have a household income      is: $120,000 per year.

  • A down payment of up to      $180,000 (if you are putting at least 20% down)
  • $120K      Annual Income/20% down 

Today:    

  • 5 year fixed rate, 2.99% 
  • A      30 year amortization.    

= Max Purchase Price $900K    

With a down-payment of $180K = MAX MORTGAGE $720K

 After Jan. 1, 2018:

  • 5 year fixed rate, 2.99% + 2% =      4.99% OR posted benchmark rate (whichever is greater)
  • A      30 year amortization     

= Max Purchase Price $800k    

With a down-payment of $180K = MAX MORTGAGE $620K

 

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NOW IS THE TIME TO MAKE A MOVE BEFORE JANUARY 1, 2018.  20% of applicants will no longer qualify.

 Attention Home Owners and Hopeful Home Buyers! 

New mortgage rules are coming into play on January 1, 2018 that will impact current mortgage holders and home buyers with more than 20% down.  In October of 2016 the Federal government rolled out the “stress test” which impacts mortgage qualification for high ratio buyers or those with less than 20% down payment.  In essence the “stress test” makes applicants qualify at a benchmark rate of 4.84% regardless of the contract rate of their mortgage in an attempt to ensure that the borrower can handle interest rate increases.  This rule will now also apply to uninsured mortgages for refinances and home buyers with more than 20% down. 

The impact will be a decrease in borrowing power of about 20% for all applicants.  To offer an example, if a family qualifies today to buy a home worth $900,000 with 20% down payment, as of January 1st their purchasing power will drop to a home worth approximately $720,000.

While the new rules are being put in place to ensure home buyers are not overextending themselves, the result is a limitation on how much Canadians can borrow against their homes.  If you are considering a home purchase or a refinance CALL ME TODAY.  Applications submitted prior to December 31st will be grandfathered so do not delay if you are looking to refinance or buy a home with more than 20% down. For a Free Market Evaluation or list of mortgage brokers........CAll me today. 604 530-4141          

 

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We are proud to announce that this Oct 7th, 1:00 PM to 3:00 PM we will be hosting an Open House at #56 WagonWheel Cres in the Tall Timbers neighborhood, Langley. This is an opportunity to visit this excellent House for sale in beautiful Tall Timbers.

Please come with any questions you may have. In the meantime you can take a virtual tour of this Tall Timbers House for sale.

As always please do not hesitate to give me a call at 604 530-4141 if I can answer any questions before the open house, or if you would like to book a private showing.

Marleane Maxwell
Home Life Benchmark

Read full post
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