Canadians are delaying home buying on the hope that prices will fall

Canadians just aren’t interested in buying homes the way they used to be.

That much is clear from the annual RBC Home Ownership Poll, which was released Monday. It showed that only a quarter of Canadians plan on buying a home in the next two years, down from nearly 30 per cent in 2016. It’s a trend that comes as Canada’s average home price has climbed to almost $520,000, up 3.5 per cent from a year earlier, according to the Canadian Real Estate Association (CREA).

Many Canadians still believe that buying a home is a good investment, but potential buyers are delaying their purchases in the hope that prices will come down, the RBC poll showed.

“For many Canadians, buying a home is a financial and personal milestone – often the biggest investment…

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Efforts to cool housing market sparked drop in CMHC insurance

New mortgage insurance rules introduced by the federal government last fall to cool the housing market have led to a sharp drop in insurance volumes for Canada Mortgage and Housing Corp. as fewer home buyers qualify for mortgage insurance.

CMHC said total insured volumes fell 41 per cent in the first quarter of 2017, including a 23-per-cent drop in homeowner insurance volumes and an 87-per-cent decline in the volume of portfolio insurance, which is bulk insurance purchased by financial institutions for their portfolios of uninsured mortgages.

The numbers unveiled on Tuesday offer a window into the impact of the government’s new rules, suggesting they have led to a significant decline in the number of people qualifying for insured mortgages under the…

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How to Sell a House: 4 Rules That Can Make or Break a Sale

These days, knowing how to sell a house isn't as simple as sticking a "For Sale" sign on your lawn.

Times have changed—and the good news is the market is currently in your favor. It’s undeniably a seller’s market. In other words, buyers are demanding homes, but there isn't much inventory on the market. Plus, half of home buyers are worried about future rising interest rates and looking to lock into a home soon. As a result, there is pressure on buyers to submit offers quickly, and to offer full or even above list price.

All of this puts sellers squarely in the driver's seat—which can be a lot of pressure if your GPS is broken and you don't know how to navigate this new world. Consider this your crash course in getting up to speed.

Rule No. 1:…

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CRA and Airbnb hosts - All the news.

Canadian Airbnb hosts and the Canada Revenue Agency

Contrary to popular belief, Airbnb hosting is not “free money”. In the eyes of the taxman, it’s rental income. That status, however, depends on a number of factors I’ll describe in this section.

Of primary importance is that hosts are documenting expenses and retaining receipts to reduce the impact of tax assessments, come CRA filing time. Credit card receipts don’t cut it with the Agency, as these don’t identify specific items purchased. You need to present the CRA with an actual receipt. This includes receipts for all the little things that make your property special – bathing products, toothbrushes, a selection of special teas, or coffee. That means that hosts are on the hook for every single…

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Seven Tips for Selling Your Kamloops Home to Millennials

Numbering around 80 million, Millennials now represent the fastest-growing generation of consumers in North America.

Statistics tell us that those born between 1980 and 2000 are a tough sell – being location-unaffiliated and cash poor means they’ve been written off as a generation of renters. But don’t be fooled: young people are more eager to get on the property ladder than you might think. In fact, Millennials now account for one in three home buyers. That figure is set to explode as we edge into the next decade.

What is true, is that Millennials have different attitudes about home buying than any other generation of home buyer. So, while a Generation Xer might value stability and look for a home they can live in for a decade or more before…

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Pitfalls of the “For Sale by Owner” Route in Kamloops

Homeowners often list their homes by themselves in the hope of saving thousands of dollars in commission. But is this actually a saving?

The term For Sale by Owner (FSBO) is quite self-explanatory. It describes the process in which an owner has made the decision to sell their own home. Homeowners usually decide to pursue this route in the hope of saving money in real estate commission. But is this initial commission saving actually a saving? There are myths and misconceptions about selling your own home.

Although it is possible to sell your own home and save on real estate commissions, there can be obstacles associated with this personal undertaking.

• Pricing/savings. Can the initial attraction of saving on commission mean underselling…

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How to Interview, Negotiate and Work with Listing Agents

If you’re selling a home, you’ll want the best possible representation.

Buying a home is a big step, but then again, so is selling a property. The most important thing when listing a home is finding the right real estate agent to get you the most money possible and ensure a smooth, stress-free process.

Before You Start

First off all sellers should take a look at the Working with a REALTOR® brochure, available on the BC Real Estate Association website (bcrea.bc.ca). This is a great introduction to what a certified REALTOR® does, what their legal and fiduciary duties are, and how you can best work with one.

Interviewing Agents

To ensure your agent is the right fit for you, sellers should interview one or more agents before signing an…

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5 Reasons to Offer Owner Financing

Owner Financing good or bad?

It would seem a bit counter intuitive for someone to allow a buyer to pay over time for their property. After all, wouldn’t it be better to get all the money in one go thereby requiring the buyer to get financing from a bank? Well, sometimes it’s more lucrative for the seller if they can make it work to offer financing. As always TAKE ADVICE when it comes to anything to do with finance and assets. This is a huge undertaking for anyone to make and without the proper fiscal and legal mechanisms in place could be a risk that you would not want to take. There are obviously good reasons to offer owner financing as detailed below.

1. Better Selling Price

In a buyer’s market, it can take a while for a property to sell,…

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Use these tips to pay down your mortgage faster

Canadian homeowners carried an average of $190,000 in mortgage debt in 2015

This according to a Manulife Bank of Canada survey. That’s a lot of money to owe a lender and thousands of dollars in interest to pay over the life of a mortgage.

One way to limit the amount of interest you pay is to pay off your mortgage faster than your agreed upon amortization schedule. Quickly paying down your mortgage will reduce the principal and thus reduce your interest charges. More money for you, less money for your lender.

Fortunately, there are several ways to pay your mortgage off quickly that require almost no effort. Let’s take a look at them below.

Choose Accelerated Mortgage Payments

Accelerated mortgage payments are the oldest trick in the book and…

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Is your bank trying to upsell you?

Here's what you should – and shouldn’t – buy

by Rob Carrick -Personal Finance Columnist - The Globe and Mail

The downside of bank upselling is that customers get talked into buying junk products they don’t need.

According to the bank tellers pouring their hearts out to CBC in a series of recent reports, upselling is rampant because of pressure to meet sales targets. A customer’s best defence is to know which sales pitches are worth listening to, and which to shut down. To help promote more informed banking, the Personal Finance column presents this guide to bank products.

Buy this

• Overdraft protection: Essential for households where money is constantly flying in and out of chequing accounts to cover automatic payments, mortgages,…

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