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What you need to know about your downpayment.

 

You’ve got your downpayment and you’re ready to go. Congratulations! Soon, you’ll need to verify that downpayment for your mortgage approval. It’s required by all lenders to protect against fraud and to prove that you are not borrowing your downpayment, which changes your lending ratios and potential approval.

 

Here’s how to prepare:

 

1 Provide a 3-month history of any bank account(s) where you have been assembling your downpayment. It’s critical that your name is linked to the account; some internet print outs don’t show a name.

 

2 If you had any large deposits, show its source i.e. if you sold your car, show a copy of the bill of sale. If you transferred money in from another account, bring the records for that account too.

 

3 If all or part of your downpayment will be a gift, a gift letter must be signed. A bank statement from the giver will verify the funds. Be prepared to show the funds deposited to your account no later than 15 days prior to closing. Gifted funds are only acceptable from immediate family members (parents, grandparents, siblings).

 

4 If using RRSP money, provide a 3-month history of the account. If you are withdrawing under the Homebuyer’s Plan, the funds must have been in the account for 90 days.

 

5 If you are getting money from outside the country, get the money into Canada at least 30 days before funding, and provide a 90 day confirmation from that location.

 

6 Regularly deposit all cash in the bank, don’t stockpile at home.

 

7  If your downpayment is coming from the sale of your home, provide a firm contract of purchase and sale and the current mortgage statement.

 

8 You’ll also need to verify that you have an additional 1.5% of the purchase price to cover closing costs.

 

Courtesy Steve Garganis

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Vancouver, BC – July 14, 2015. The British Columbia Real Estate Association (BCREA) reports that a total of 11,294 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in June, up 25.6 per cent from the same month last year. Total sales dollar volume was $7.1 billion, a 42.6 per cent increase in comparison to the previous year. The average MLS® residential price in the province rose to $631,962, a 13.5 per cent increase since last June.

 

“BC home sales posted the second strongest June on record,” said Brendon Ogmundson, BCREA Economist. “A growing provincial economy and record low borrowing rates continue to push demand higher, particularly in the lower mainland.”

 

“While consumer demand is surging, the supply of homes for sale has not kept pace. The resulting imbalance of supply and demand has put upward pressure on prices in many areas of the province, most notably with respect to single-detached homes,” added Ogmundson.

 

Year-to-date, BC residential sales dollar volume increased 36.8 per cent to $32.6 billion, when compared with the same period in 2014. Residential unit sales climbed by 23.1 per cent to 51,559 units, while the average MLS® residential price rose 11.2 per cent to $631,946.

 

Source BCREA

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BCREA 2015 Second Quarter Housing Forecast Vancouver, BC – June 1, 2015.

 

The British Columbia Real Estate Association (BCREA) released its 2015 Second Quarter Housing Forecast today. “More robust economic growth, strong consumer confidence and rock-bottom mortgage interest rates are expected to push housing demand this year to its highest level since 2007,”

 

Multiple Listing Service® (MLS®) residential sales in British Columbia are forecast to rise 2.4 per cent to 86,050 units this year and a further 3.9 per cent to 89,400 units in 2016. The ten-year average is 82,100 unit sales. A record 106,300 MLS® residential sales were recorded in 2005. The average MLS® residential sales price is forecast to rise 4.5 per cent to $594,000 this year, with most of the upward pressure being exhibited on the South Coast. Elevated consumer demand is expected to be partially offset by resale inventories and additions to the housing stock in 2016. As a result, the average MLS® residential sales price is forecast to increase by 2.4 per cent to $608,500 next year.

 

Information courtesy BCREA

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Vancouver, BC – September 12, 2014.

 

The British Columbia Real Estate Association (BCREA) reports that a total of 7,341 residential sales were recorded by the Multiple Listing Service® (MLS®) in August, up 7 per cent from August 2013. Total sales dollar volume was $4.1 billion, an increase of 12.4 per cent compared to a year ago. The average MLS® residential price in the province rose to $560,318, up 5 per cent from the same month last year.

 

“Consumer demand remained relatively robust in August,” said Cameron Muir, BCREA Chief Economist. “The Okanagan and Chilliwack board areas posted the strongest year-over-year gain of 22 to 25 per cent in unit sales, while Victoria and Vancouver increased around 10 per cent respectively.” Home sales last month were the highest for the month of August since 2009.

 

“Low mortgage rates, increased net-migration and improving economic conditions continue to underpin housing demand in the province,” added Muir.

 

 Year-to-date, BC residential sales dollar volume was up 22.8 per cent to $28.5 billion, compared to the same period last year. Residential unit sales were up 15.8 per cent to 57,715 units, while the average MLS® residential price was up 6.1 per cent at $564,466.

 

 

"Copyright British Columbia Real Estate Association. Reprinted with permission." BCREA makes no guarantees as to the accuracy or completeness of this information.

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Record Low Mortgage Rates Push Home Sales Higher

 

 May 13, 2014. The British Columbia Real Estate Association (BCREA) reports that a total of 7,730 residential sales were recorded by the Multiple Listing Service® (MLS®) in April, up 12 per cent from April 2013. Total sales dollar volume was $4.3 billion, an increase of 19 per cent compared to a year ago.The average MLS® residential price in the province rose to $561,613, up 6.3 per cent from the same month last year.

 

BC home sales trended higher in April as the typically robust spring market unfolds. Rising consumer demand coupled with fewer homes for sale has most BC housing markets now exhibiting balanced conditions, where neither buyers nor sellers have any particular advantage.

 

 Housing affordability improved last month as intensifying completion for new business by financial institutions pushed the posted five-year fixed mortgage rate to a record low of 4.79 per cent added Muir.

 

 During the first four months of the year, BC residential sales dollar volume was nearly 28 per cent to $13.9 billion, compared to the same period last year. Residential unit sales were up 18 per cent to 24,165 units, while the average MLS® residential price was up 8.3 per cent at $573,965.

 

 

 

Source BCREA

 

 

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Vancouver, BC – April 15, 2014.

 

The British Columbia Real Estate Association (BCREA) reports that a total of 6,661 residential sales were recorded by the Multiple Listing Service® (MLS®) in March, up 16.8 per cent from March 2013. Total sales dollar volume was $3.7 billion, an increase of 21.5 per cent compared to a year ago. The average MLS® residential price in the province rose to $562,316, up 4 per cent from the same period last year.

 

 

 

"While home sales are up from a year ago,consumer demand in the province has largely

been treading water over the first quarter,”said Cameron Muir, BCREA Chief Economist.

“However, fewer homes for sale means that most BC markets are moving into balanced

conditions, which signals no particular advantage to either home buyers or sellers."

 

 "Low mortgage interest rates are a key driver in the market, this spring,” added Muir. “It’s unlikely that mortgage rates will be at their current low level a year from now."

 

 During the first quarter, BC residential sales dollar volume was up 32.4 per cent to $9.5 billion, compared to the same period last year. Residential unit sales were up 21.1 per cent to 16,435 units, while the average MLS® residential price was up 9.3 per cent at $579,775.

 

Source BCREA

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When selling your home you want to get the best price possible, right! People say “hey Marie how do we get the best possible price for our home. Do we renovate the kitchen or bathrooms? Do we paint or repair our driveway?"

 

 It is usually not a good idea to undertake major renovation projects simply to sell your home. There are no guarantees that you will be able to recover all of your costs. Instead, consider what types of minor cosmetic improvements can be made, like general cleaning, painting, floor refinishing and so on. These projects generally do not require a lot of capital and your home can be greatly improved by them.

 

 When your home is for sale, it’s often more than just the purchase price and location that will make or break a deal. Making your home look its very best and presenting it as a desirable place to live is also very important.

 

 Your red dinning room looks fantastic but to a possible buyer it could be a complete turn off. A neutral wall color will quietly sit in the background and allow buyers to really look at the space, the windows, the floors, and more. Buyers know that you will be taking the furniture with you but the walls will be left behind for them to deal with.

 

 The very best way to get the most money possible for your home is for it to be clean and free of any offensive scents, you will loose value in your home if it is dirty and smells of smoke or has pet odors.

   

                                                    A dirty smelly house = less dollars in your pocket.

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Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.

 

Effective May 1, 2014 the nation’s largest default insurer (Genworth as well) is bumping up its standard premiums by 0.10 to 0.40 percentage points. It's the first hike to homeowner insurance premiums since 1998.

 

• Existing insured borrowers are unaffected by this news (unless they increase their insured mortgage later)

 

• CMHC’s fee hikes apply to owner-occupied, self-employed and 1-to-4 unit rental property applications.

 

• Self-employed borrowers without traditional income validation (i.e., stated income borrowers) will see an even    bigger fee increase. On stated income applications of 85.01% to 90% LTV, homeowners will pay 70 basis points  more than today. That’s $1,750 more on a $250,000 mortgage, plus interest if the premium is rolled into the  mortgage.

 

• Those submitting applications to CMHC before May 1 get the existing lower premium

 

 • Note that “complete borrower and property details must be submitted to CMHC” before May 1 to qualify for the old    premiums, including the property address.

 

• CMHC says the borrower’s closing date will have no effect on the premiums charged to the client.

 

• Going forward, CMHC will start announcing any changes to its premiums in the first quarter of each year.

 

CMHC mortgage loan insurance premium is calculated as a percentage of the loan based on the loan-to-value ratio. The premium can be paid in a single lump sum but more frequently is added to the mortgage principal and amortized over the life of the mortgage as part of regular mortgage payments. For loans with a loan-to-value ratio of 80% or less, the premium surcharge for every five years beyond the 25 year standard amortization period will increase from 0.20% to 0.25%. For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact the housing market.

 

 

 

Source ; CMHC

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In this years provincial budget the Property Purchase Tax exemption threshold for first-time home buyers will increase from $425,000 to $475,000.

 

 According to the governments own calculations this measure will benifit about 1,700 additional first time buyers by providing them with a potencial tax savings up to $7,500.

 

This is welcomed news for fisrt time home buyers looking for a home under the new $475,000 threshold. The Victoria Real Estate Board has been advocating for a change in these thresholds for a number of years and are please to see the government responding to ease the burden of shelter tax for first-time home buyers.

 

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The Savvy Home Viewer

 

If house hunting is in your future, then you will likely be viewing many homes on the market that fits you criteria. Considering that a home is likely the biggest investment you make, you will want to make the right decisions for you and your family. So, it's wise to be savvy when you're viewing properties for sale.

 

Here are some ideas to keep in mind

 

  • Take notes, not only of the homes characteristics, but also of how you feel in the home and on the property. Can you imagine yourself living comfortably in the home? Do you see the home being a good fit to your lifestyle?
  • Take a measuring tape. Will your furniture fit? Your fitness equipment, your dinning room set? Ask your Realtor if there is a floor plan available.
  • Ask about maintenance, will anything need to be repaired or replaced such as the roof or the windows. (Note often you can find the year the windows were manufactured by a date stamped on the inside metal frame between the glass panels).
  • It's difficult to remember everything about a home you have viewed so bring a camera and take lots of pictures. Start with the front of the property and end your picture session for each house by taking a picture of the front door. You will be able to determine which pictures belongs to which house.
  • Check out the area. Do other home owners take care of their properties? This shows pride of ownership. How is the noise level? Is there a playground close by or any other area features nearby?
  • Make a list of compromises. For example are there ony 2 bedrooms instead of 3? Can you live with that?
  • Make a list of bonuses. What features does the home have that are not necessary, but would be nice to have. For example a basement recreation room or a pool.
  • Keep your budget in mind. The savvier you are when viewing properties on the market the more likely that you will be successful in finding the right home.

 

Please don't hesitate to contact me for more details or any of your real estate needs.

 

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Marie Dorland

Cell: 250-507-8096

Office: 250-477-5353

Royal LePage Coast Capital - Chatterton

110-4460 Chatterton Way

Victoria,BC

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NOTE: MLS® property information is provided under copyright© by the Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification. This website may only be used by consumers for the purpose of locating and purchasing real estate.