To Pay, or to Play: Mortgages vs. Vacations

As you may have heard, CIBC recently announced that fewer Canadians are in a rush to pay off their mortgages. The reasoning behind this: Record low rates.

Based on the polling results, which surveyed 1,509 randomly selected participants, fewer Canadians are in a rush in pay off their mortgage as stats dropped from 68 per cent last year, to 55 per cent today. The poll also shows that 23 per cent of these Canadians have accelerated their payment frequency (down from 42 percent); 28 per cent increased the payment amount (down from 30 per cent), and 18 per cent made lump sum payments. Overall, the average Canadian is expecting to be 58 by the time they are mortgage free.

Appraisals 101

With fluctuations in the real estate market and changes to Lender requirements and qualifications, it is important to know what an Appraiser is looking for when viewing your home. When booking an appointment with the Appraiser, remember these top five items for the most accurate valuation of your home.

1) An Appraiser is required to view all rooms in your home

Since the Appraiser will make sure you are aware that all rooms need to be viewed, you’ll be able to prepare the occupants or tenants of the home. If no access is provided at the time of the inspection then a second visit may (most likely) be required by the Lender, and a fee will be charged for a second visit.

Secondary Suites: Increasing Interest, Lacking Legal

While buying your first home can be a scary, expensive, experience, today many first time home buyers are finding a peace of mind and paying off their mortgages faster by settling in homes with a secondary suite.

As this trend of additional income via renting a suite in your home becomes more and more popular, the actual number of legal secondary suites remains quite low.

Canadian Housing Market Overvalued?

The weather isn’t the only thing that’s hot right now. The housing market is also overheated.

Fitch Ratings, a global rating agency, recently announced that Canadian home prices are overvalued by 20 per cent based on historical drivers of home price growth. They also noted that if the market doesn’t begin dropping on its own, then the federal government may have to step in to prevent a crash.

Boomers on Billions

Bob Rennie, a Vancouver based Real Estate Marketer and founder of Rennie Marketing Systems,  recently revealed the amount of real estate wealth boomers and super seniors (aged 75+) in the region are sitting on. During his annual announcement to Greater Vancouver’s development community, Rennie dropped the shocking number: $163.4 billion.

Kam Weighs in on CMHC Product Changes via Black Press Media

In an interview with Natalie North via Victoria News, Kam discusses the recently announced Mortgage Insurance product changes. Here's the scoop:

Prospective home buyers in Victoria may have a difficult time sealing the deal at month’s end when the country’s national housing agency does away with two insurance products – a move that could spark repercussions across the buyers’ and rental markets alike.

Genworth and Canada Guaranty Stay the Course

Recently CMHC announced that they will be eliminating Mortgage Insurance programs for Second Homes and Business for Self applicants without third party provable income. These are hefty changes that could affect many of you who meet this criteria when looking to secure a mortgage in the future.