As everyone has seen the Bank of Canada has decreased their key interest rate at their last 3 meetings. This is welcome news for current variable rate mortgage holders.
We’ve also finally started to see some rate decreases on the fixed side. In the past 2 months the popular 3 year fixed has gone down by almost 1%.
With the economy potentially heading for a recession (or is it there already..) we’re anticipating rates continuing to decrease.
Currently the market is pricing in another 8 rate cuts from the Bank of Canada over the next 2 years.
With all this in mind, if you are coming up for renewal, please make sure not to take your current lenders first offer. They often provide you with an uncompetitive rate and a quick expiry with the hopes that you will lock in long before your renewal date.
Make sure to get a second opinion, as it could save you thousands!
You don’t want to miss this lovingly maintained, move-in ready home with tons of updates. Located in a central, quiet neighbourhood in Richmond on a 60 X 100 rectangle lot. Upstairs is the renovated designer kitchen with gas stove, two ovens, nuheat floor, and a view overlooking the swimming pool and yard. Off the kitchen enjoy gorgeous South-West sunshine from the large new vinyl deck. Open dining & living room with real oak floor & updated gas fireplace. Storage room with 2 fridges, and updated washer & dryer. Other features include: Vinyltek Eurotwist windows (2013), Furnace (2011), HW Tank (2016), Deck/Balcony/Railings (2018), Roof/skylights (2011), Washer (1 year), shed, single garage, extra covered parking. Steps to Brighouse Elementary, Richmond High, Transit, Shopping and more!
FEATURED LISTING: 407-2678 DIXON STREET, Port Coquitlam
Move-ready, freshly renovated bright & spacious 3 bdrm penthouse with vaulted ceilings! Superb layout with good bedroom separation for privacy. Large master with flex area & two good sized guest bedrooms with custom fitted desks. This home has been beautifully upgraded with new laminate flooring, fresh paint, lighting, washer & dryer, closet organizers & cozy gas fireplace with new mantle! Stunning reconfigured kitchen with huge island, built in wine fridge, stylish tile backsplash, stainless steel appliances, quartz counters & plenty of cabinetry! 2 full baths – new shower & tile surround! Large brand new balcony – great for entertaining & taking in the mountain views. Central location close to HWY 7, Coquitlam Centre, Westcoast Express, transit, parks, schools AND steps to Coquitlam River, PoCo Dyke & Trails – great for biking! 2 parking + 2 lockers, 2 small dogs allowed.
The RE/MAX Quest for Excellence scholarship program is a cash scholarship that recognizes students for their ongoing community contributions and pursuit of leadership. RE/MAX Canada will award 40 scholarships of $1,000 each to students across Canada (except for Quebec).
The RE/MAX Quest for Excellence scholarship program is a great opportunity to reach out to your clients and local high schools to help spread the word.
Participants must be a Grade 12 student attending high school in the 2022/2023 academic year, who have not previously participated in graduation commencement ceremonies in the past.
Eligible students are invited to write and submit an online essay* up to 1,250 words in length, answering one of the following questions:What does a “bright future” look like for you?
How have you demonstrated leadership or charity within your community to make it a better place?
How can we ensure fair and affordable housing for all Canadians?
What better way to start the new year than by buying a stunning ‘like-new’ condo?
If you know anyone thinking of making a move or getting into the market, this is the perfect ‘starter home’ for a couple, work-from-home setup for a single professional, or a down-sizers dream!
This property’s outstanding features include:
Still under the 2-5-10 new home warranty (built in 2016 by Dava Developments
Heat, Air Conditioning, Gas Stove, Swimming Pool/ Hot Tub, and Gym are ALL included in the maintenance fee.
2 Parking Spots, both close to the entry.
Rentals and Pets (Yes-2 Doggos!) are ALLOWED!
10 – 15 minute walk to Bridgeport train station (or Casino!).
Unobstructed South-Facing view with lots of light.
Fisher Paykel Fridge, Integrated DW, Gas Range Stove.
End-unit- only one neighbour! (aka peace and quiet).
Excellent layout with bedrooms on opposite sides of unit.
TONS of bike storage.
Beautiful grounds featuring outdoor seating, a dog park, the dyke walkway along the river, multiple playgrounds + a brand new park with basketball court.
Starting in January 2023, there will be a federal ban on non-Canadians buying homes across Canada. The Prohibition on the Purchase of Residential Property by Non-Canadians Act prohibits non-citizens and non-permanent residents from purchasing residential property in Canada for two years.
“Residential property” includes detached houses or similar buildings of one to three dwelling units, as well as parts of buildings such as semi-detached houses, strata units or other similar premises.
Even though this ban is less than 3 weeks away from being implemented, details have still not been announced and there is still a lot that we do not know about the Act. There may be exemptions for certain groups of people, types of residential property and special circumstances, but these have not yet been established.
There may be exemptions for the following:
– recreational properties, residential property located outside of a large urban centre, vacant land, indigenous peoples, international students on the path to permanent residency, individuals with work permits residing in Canada, individuals fleeing international crises, accredited members of foreign missions in Canada.
The BC Real Estate Association is concerned that this policy will create obstacles for homeownership for newcomers and can interfere with Canada’s ability to attract immigrants. The policy is at odds with the federal government’s own immigration targets, as they aim to welcome 465,000 people to Canada next year.
Will it work though?!
The answer is yes and no… are foreign buyers the problem?
In 2016 BC introduced a 15% foreign buyers tax (later raised to 20%), after which foreign buyer transactions fell to just 1.4% of all B.C. sales. That number went up in 2017 to 3-4%, but since 2020 it has remained at just 1-2%. There is no doubt there is a lot of foreign money in Vancouver- money being made elsewhere and spent here- but it’s not necessarily brought in by non-citizens and non-residents.
However, IF the public thinks this Act will have an effect, then it will have an effect (aka ‘The Media Effect’). If buyers and sellers believe that this ban will be responsible for a cooled market, that may in turn cause increased activity in the local market- crazy, right?! It’s the same when the news is reporting that the market is softening, and the public starts to believe the market is softening, so buyers back-off, and then behold- a soft market.
I’ll be updating my clients on this Act next month, when we hopefully know much more about it. In the meantime please reach out if you have any questions!
Do you know anyone thinking about making a move in 2023? Did you know by them simply connecting with me for a chat you receive a referral gift?
That’s right- refer a potential buyer or seller and you receive a small token of my appreciation (spoiler alert! It’s a gift card).
What happens when that person buys or sells with me? You receive an even BIGGER token of my appreciation (spoiler alert- it’s money!). For every transaction that you refer to me you will receive a generous gift.
My client’s mean the world to me, and that includes anyone you send my way! If you know someone in search of an experienced agent (with amazing service that gets great results for her clients…) give them my number!
Yes, it’s true. In case you haven’t heard all about it already, on December 7th the Bank of Canada raised the policy interest rate by 50 basis points and increased it’s target for the overnight rate to 4.25%, with the Bank Rate at 4.5%. Ok great, but what does it all mean!?
– If you haven’t made a purchase yet, your borrowing ability has likely decreased by 6-8%.
– 5 year Fixed term rates are hovering around 5.5% currently.
– If you have an Adjustable Rate Mortgage (meaning your payment increases/decreases depending on interest rate changes), your mortgage payment has increased by approximately $30 per every $100,000. (Ie; you have a $500,000 mortgage, your payment just increased by $150/ per month.)
– If you have a static Variable Rate (meaning your payment doesn’t change but the interest to principal ratio of your payment changes), there is a chance you will hit your ‘Trigger Rate’.
– The ‘Trigger Rate’ is the interest rate at which the interest portion of your payment equals the total payment amount (at which point you run the risk of paying interest on interest).
– If you hit your Trigger Rate, your lender may automatically increase your payment, extend your current amortization, or request manual lump sum payments.
WHAT CAN YOU DO?
– If you haven’t made a purchase yet, you may want to speak to your mortgage broker about locking in for a term shorter than 5 years, and then refinancing when the rates are lower. If you do lock in for a 5 year term, see if you can negotiate lower penalties for breaking your term early and refinancing.
If you are on a Static Variable or Adjustable Variable:
– Utilize mortgage prepayment options to make extra payments to your principle, lump sum payments, or double up payments to avoid your amortization extending past 25/30 years.
– Change your payment frequency to biweekly.
– Contact your broker about refinancing and extending your amortization to reduce monthly payment amounts.
– Contact your lender directly about options if your mortgage payment becomes unmanageable and discuss possibly extending your amortization on insured and conventional mortgages.
