Paying 20% down payment is the wiser choice, or is it?

Taking current economic and fiscal realities into account, it would be far more sensible to pay the initial 20 per cent down payment for a home purchase in full instead of saving the money for later, according to a veteran industry analyst.

In a March 10 piece for The Globe and Mail, markets observer Rob Carrick argued that the mortgage environment of today does not favor those who carefully save and spend their hard-earned funds.

“Home buyers who put less than 20 per cent down are seen as risky enough to require that they pay the cost of default insurance for their lender. But the best mortgage rates are in some cases going to people with small down payments,” Carrick wrote.

“The indignities for diligent savers are piling up. You’ll earn next to no…

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B.C. real estate reform: What you need to know

You will have heard about the changes to British Columbia real estate laws

The British Columbia government is in the midst of a wide-ranging overhaul of how the housing market is regulated and taxed, amid growing concerns that foreign ownership, rampant speculation and unscrupulous real estate agents are fueling an affordability crisis.

On Aug. 2 2016, a 15-per-cent tax took effect for home purchases in the Metro Vancouver area involving foreigners. During the past several months, the province has also announced an end to self-regulation, largely in response to a series of Globe and Mail investigations into questionable practices within the industry. This has included a tax on vacant homes in the City of Vancouver.

These are in addition to what…

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House Hunting Etiquette

Have you been pre-approved for a mortgage?

Have you started looking for your starter home and or your dream home? Maybe you are wondering what you need to know and what you should do before you begin checking out open houses.

We’ve already covered the timeline to possession in a previous blog but we thought it would be beneficial to understand house hunting etiquette in order to best understand the viewing process and in order to best utilize your time.

1) Show up on time:

We get it, life happens. No problem. If you are running you late call ahead and let your agent know you will be late. This is good etiquette for any situation in which you might be late. They might have other showings after you that they need to move back a little but to…

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Who is out there in the Kamloops real estate market

Real estate trends vary a little from year to year

Sometimes it’s a buyer’s market, and other times sellers are favored. Knowing what is going on in financial and investment sectors can often signal you whether it’s time to buy or sell. 2016 is in it's the last quarter with some very low inventory available in Kamloops, we are seeing homes in the average price range and lower are selling fasteroften going into multiple offer situations. Millennials (born between 1982 and 2002) are finally beginning to invest in real estate in larger numbers, which should continue to rise. This is still a year that favors both buyers and sellers in various markets.

The Millennials

As more and more Millennials are considering their future retirement, eighty-percent…

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Finding the right real estate agent. How do we accomplish it?

Finding the right real estate agent can make a huge difference in the process of buying or selling a home. 

Because searching for a home, or selling a home, may be the largest single financial decision you make, interviewing three agents is a wise exercise for you to undertake.

Which Agent Will It Be?

If you had been attending open houses before you reached this point, you have already been interacting with agents and met some that you are already considering. You had probably eliminated several before you left the open house. You may consider other agents you are acquainted with in the community. The agent you choose must be able to wear many hats. Because this process often takes time, that will be spent with that person, bear that fact…

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How to choose a Kamloops income property

There are quite a number of variables to consider when purchasing a residential income property.

You’ll likely want to eventually engage with a real estate agent, but prior to doing so it is important to conduct as much research as possible. Remember to approach the purchase with an unbiased attitude and evaluate your options based on factual information.
 
Here’s a look at some of the top variables to consider when evaluating potential properties.
 
1. Economic outlook. Locations that are seeing employment growth will typically have more people moving to the area – this should also increase the potential renter pool. Conversely, locations that don’t offer as much employment opportunity or have/will see large employers leaving town, will often…

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Kamloops First Time Home Buyers

First-time Home buyer in Kamloops

Making an Informed Investment

If you’re in the market for a new home, take a moment to ask yourself a few key questions about what you should be looking for, how much you can comfortably afford to spend, and whether home ownership is right for you.

How much home can you afford?

• Before you begin shopping for a home, prepare a simple budget, so you can figure out where most of your money is going on a monthly basis. If you aren’t sure how much you’re spending each month, use CMHC’s Household Budget Calculator to take a realistic look at your current expenses.
• When preparing your budget, don’t forget that there are many up-front costs that come with buying a home. This can include a deposit, appraisal…

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Can I Get a Mortgage with Bad Credit?

Is It Possible to Get a Mortgage with Bad Credit in Canada?

You had a few financial setbacks when life’s speed bumps tripped you up, but now you’re on the right path and are ready to take the leap into home ownership. The only problem is: you’re not sure if your pesky credit history is going to prevent a lender from giving you a mortgage loan. The good news is there are some options available to you; the bad news is they don’t always come cheap. Here’s a quick breakdown of how you can check your credit score and, if you need to, get a bad credit mortgage. While many brick-and-mortar banks consider customers with poor credit to be high risk, there are lenders who are willing to extend loans to clients, regardless of their payment history. One option is…

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Mortgage's explained - Part 2 - Fixed versus variable

The gap between variable rate mortgage and fixed rate mortgage products has narrowed in recent years. And while fixed rate mortgages are starting to rise they offer certainty in a monthly payment. On the flip-side, variable rate mortgages remain low, but are the riskier of the two choices – so how do you choose?   Your income, lifestyle and risk tolerance will weigh heavily on your decision and will inevitably determine which product suits your circumstance.   Risk versus reward   The appeal of variable rate mortgages (also called adjustable rate mortgages) is that the interest rate is typically lower than that of fixed rate mortgage products. However, the main drawback is the risk involved. Without warning, interest rates could increase…

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Mortgage's explained - Part 1 - The Basics

Sometimes concepts in the finance world can be tricky. We get so caught up in trying to understand what all the offerings are that we forget to understand the simple things. When is the last time that someone said what a mortgage really is? Or explained why I can only buy a home for $350,000.00. We all have questions in the back of our minds that we don't articulate because we are just too embarrassed. Here are the top five things you are afraid to ask.

1. What is a mortgage?

A simple enough question but not one that people seem ready to admit to . A mortgage is a loan secured by real property, commonly referred to as real estate. In essence it is a contract that includes rights and obligations of both parties. The term actually comes from a…

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