Why It’s Critical to Teach Your Children Financial Life Skills

Posted by Steve Harmer on April 21st, 2016

Today’s world is moving faster than ever, and that includes the exchange of money.

How often do you make financial decisions per day, 10, 20, 30 times? Whether it’s the decision to buy organic food, new sports equipment for the kids, or gas for the car, financial decisions are a huge and fundamental part of our everyday life. Would it help if our kids had some guidance on how to make all those little decisions effectively, so they can create a solid financial future? You bet; there is an epidemic of adult children staying in their parents’ homes or moving back home because they cannot financially support themselves. Check out this NEFE study on parents financially supporting adult children.

When do you need to start? Now. There is a real urgency to…

2272 Views, 0 Comments

BC Home Sales Post All Time Record

Posted by Steve Harmer on April 18th, 2016

Vancouver, BC – April 15, 2016.

The British Columbia Real Estate Association (BCREA) reports that a record 12,560 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in March, up 38 per cent from March of last year. Home sales last month eclipsed the previous record of 11,683 unit sales in May of 2007. Total sales dollar volume was $9.69 billion
in March, up 66.9 per cent compared to the previous year. The average MLS® residential price in the province was up 20.2 per cent year-over-year, to $771,620.

“Housing demand has never been stronger in the province,” said Cameron Muir, BCREA Chief Economist. “Most large population centres of the province are now experiencing record levels of housing demand.”
“Strong employment growth,…

2205 Views, 0 Comments

Small Down Payment Doesn’t Mean The Buyer is Not Qualified

Posted by Steve Harmer on April 12th, 2016

Even with lending standards tightening up following the financial crisis, there are still a number of low-down payment loan options for qualified buyers.

Unfortunately, some sellers and their Realtors are making the mistake of pushing away these buyers by demanding a higher down payment than is truly necessary.

There seems to be some confusion on the part of these sellers and their agents as to what qualifies a buyer to get a loan, and whether that no-down payment buyer will be a good person to sell to. In many cases, a buyer with a twenty percent or more down payment is no more likely to get a loan than a no or low down payment borrower but don’t make the mistake of brushing aside a qualified buyer by demanding too high a down payment when selling…

2083 Views, 0 Comments

Understanding Buyers Remorse - Tips you help you feel at ease.

Posted by Steve Harmer on April 12th, 2016

Buyer’s remorse is a common feeling during the home buying process.  

You loved your future home when you signed the contract to purchase it, but now you’re not sure if you made the right decision.

What if you acted too quickly and a better house comes on t - he market next week? What if you paid too much for the house? What if something happens to your finances and you can’t make your house payments? Did I bite off more than I can chew?

"Buyer's remorse is the sense of regret after having made a purchase. It is frequently associated with the purchase of an expensive item such as a car or house. It may stem from fear of making the wrong choice, guilt over extravagance, or a suspicion of having been overly influenced by the seller" - Wikipedia

…

1866 Views, 0 Comments

Fixed or floating? The great mortgage debate of our time...

Posted by Steve Harmer on April 11th, 2016

For those taking on a mortgage or renewing one, it’s a question that can be complicated.

On one hand, interest rates are at historic lows. The Bank of Canada’s benchmark overnight lending rate is at 0.5 per cent. To some borrowers, this might suggest it’s a good time to lock in at a low rate for a long time.

On the other hand, to the surprise of almost no one, the bank suggested that it anticipates no changes. “The near-term outlook remains broadly the same as it did in January,” it said in its most recent rate-setting statement, on March 9. That suggests a floating rate might make sense.

See our BLOG article on interest rates HERE

The issue becomes more complicated, though, because borrowers likely won’t find much advantage.

Compared with…

1965 Views, 0 Comments

How a simple credit error can ruin your home-owning dream

Posted by Steve Harmer on April 7th, 2016

Imagine the anxiety of watching your credit score unexpectedly plummet after spending your entire adult life maintaining good credit.

Now suppose this credit decline blocks you from getting a mortgage on the house you planned to buy.

That’s precisely what happens to many mortgage applicants all across the country with surprisingly high frequency.

All too often the culprit is unpaid phone bills. In some case's your cellphone provider will send an account's to a collection agency after being just more than a month late, especially on its cancellation fee. That causes your credit score to drop like a lead pickle, approximately 80 points (out of a theoretical 900) virtually overnight.

It never should have happened that way. Collections are meant…

1787 Views, 0 Comments

10 tips for first-time homebuyers in Kamloops

Posted by Steve Harmer on April 3rd, 2016

10 tips for first-time home buyers in Kamloops

How to navigate the real estate market

Home buyers are currently caught in a storm of low inventory, high demand and tight credit availability. 

In these market conditions, even simple tactics or connections a potential home buyer can have could make the difference between owning a home or not.

1. Know what you can afford  

When looking for a new home, make your search more effective by knowing how much home you can afford. Carefully calculate the overall monthly payments. Be sure to include additional costs like property taxes, property transfer tax, insurance premiums, homeowners insurance, homeowners' association dues (if applicable), etc. Look at your monthly budget to understand how…

2146 Views, 0 Comments

Renovating without a permit can be a costly mistake

Posted by Steve Harmer on March 17th, 2016

There is an important part of taking on a home renovation -- the building permit.

You may know of friends who have had their basements finished over the past few years and maybe none have obtained a building permit first. They assumed that since the renovation did not extend beyond the existing walls of their home, they were free to make any changes they wished. According to Ray Leclair, a real estate lawyer your friends have been breaking the law.

"It's a municipal by-law under building code," he says. "The impact of it is that there could be a fine for the homeowner or the municipality can say remove the structure or they'll condemn the property."

Most of us realize that major renovations such as building an addition to a home require a…

3888 Views, 0 Comments

The art of making an offer to buy a house

Posted by Steve Harmer on March 16th, 2016

When buying a house, getting your offer right is both very important and very difficult.

What do you need to consider? How do you make your offer stand out? How do you get your offer accepted? And how do you ensure that you are getting the best deal? These are some of the questions that you might already be struggling with, so to help you out, we have put together some of the key things to consider.

What to consider before making the offer

Ask yourself...

• What are my long term plans?
• Will I live here for more than a few years?
• Can I commit to paying my mortgage on time every month?
• Will I like the neighbourhood?
• Am I ready for the expenses of a home?

Use our calculators page for help with affordability

Other things to…

3256 Views, 0 Comments

How to try to win a multiple offer situation with today's low inventory

Posted by Steve Harmer on March 14th, 2016

The spring home-buying season is in full swing.

But there is just one problem: Low housing inventory in most price points of the market.

And no matter how much the demand is there and how much lenders are willing lend, it means little if there are no houses to buy.

As a result, the few houses left end up being fought over in multiple offers, leaving many borrowers without a house.

Here are a few tips that may help you win a multiple offer situation:

1. Offer Full Price or More. Money is a major factor in a seller’s decision, but not the only one.
2. Good sized deposit. Show the seller you are committed with a good sized deposit to stand by your “word” (purchase agreement) to buy the home.
3. Cash is King. Go in with cash if possible to…

2956 Views, 0 Comments