An Important Topic of Conversation For Seniors and or Loved Ones.
7 Questions seniors should ask any real estate agent
Buying or Selling Real Estate is Different for Seniors.
Questions and Tips to ensure that are working with a team of experts.
A little preparation will minimize your stress, prevent mistakes while saving you time and money.
Effective Oct. 17, 2016 all homebuyers, requiring an insured mortgage (a mortgage with less than 20 or 25% down-payment) for their home purchas
e will have to further be assessed/qualified on a mortgage payment stress test to
evaluate if a homebuyer would still be able to make the mortgage payments if their mortgage payments increased based on higher interest rates or the homebuyer potentially generated less income.
Until now, Mortgage financing stress tests weren’t required for closed or f
ixed-rate mortgages with a term longer than five years.
In addition to the mortgage stress test, several eligibility rules will tightened on mortgages where borrowers made down payments of at least 20 per cent of the purchase price by Nov. 30, 2016.
The immediate impact for home buyers will result in fewer home buying opportunities for those that only qualify under their current income level.
Home buyers with room to spare in their ability to make higher monthly payments, will have little or no impact at all.
In the (Greater Victoria) real estate market where we already noticed a slight leveling of the market from our earlier very aggressive price and volume increases, the new mortgage rules most likely will offer a new balance to the local market place.
This leveling in the local real estate market will assist homebuyers with a bit more time to review their options in order to make the best home buying decision possible for their next home.
In summary, it would appear that the Mortgage Financing Stress Test may possibly result in some short term pain but will result in a more secure and stable (well qualified) real estate market place.
We would urge aspiring home buyers to connect with the mortgage broker or lender of their choice and confirm their personal financing qualifications.
With the rules changes, some people will notice that the price range of their future home may be impacted by the new mortgage financing stress test.
If you have any questions, please connect with Peter at 250-213-9490 or email us at your convenience.
No, this will not be a singing class, just a quick post about a question we get asked fairly frequently.
The question if you “Should Rent or Buy a Home In Greater Victoria NOW”, will always be a personal for you to answer. However, if we look strictly at the "numbers" and for the moment forget about the emotional investment in either buying or renting, the answer is actually pretty simple.
If you have (or can get assistance with) the buying costs and down-payment, there is little question that Buying a Home in Greater Victoria, NOW is the right thing to do.
Here is some information from my (not so scientific) research:
I looked up (on Craigslist) currently available single family homes for rent with 2 or more bedrooms and 2 or more bathrooms within 20 km from my own home (Saanich near Uptown). and averaged the rental rates, without spending much time on the features and or extra's within the homes.
The average rental rate for single family homes came out too approx. $ 3,000 per month.
In simple mortgage terms that $ 3,000 per month would also pay a 25-year a
mortized mortgage of approx. $ 600,000 and with that I found (as of the writing of this post) 127 single family homes for sale of the same number of bedrooms and bathrooms and within similar distance to my home. Here is a current list of Single Family Home options for sale.
I was intrigued and extended my "research" and tried a similar experiment with Condominium suites, here is what I found.
I searched Craigslist again for 1+ bedrooms and 1+bathrooms within 20 km of my home (Saanich near Uptown).
The average rental rate (which seemed higher than I expected) averaged $2,300 per month.
In simple mortgage terms that $ 2,300 per month would also pay a 25-year amortized mortgage of approx. $ 425,000 and with that I found (as of the writing of this post) 210 Condominium homes for sale of the same number of bedrooms and bathrooms and within similar distance to my home. Here is a current list of Condominium Home options for sale.
To be honest with you I was very pleasantly surprised with my findings and wanted to share them with you right away.
Given that our average prices have only just started to increase since October 2015, we expect that property values in Greater Victoria will continue to increase for the foreseeable future. Hence you (as a buyer and future home owner) would benefit from the value increase over the length of time you own the property, never mind the mortgage balance reduction during the same time.
If you have been thinking about Should I Rent or Should I Buy a Home In Greater Victoria, NOW, I hope this information offers you some perspective?
Okay, here is my caution..... Averaging anything always looks better on paper, your specific reality is likely a bit different, as such we encourage you to connect with us before you venture into the market place to deeply.
We are here to help and make sure that you get all the right information about your specific situation, before you make life changing decisions.
However, many people over many generations, have plunged in to the homeownership pool soon after the Greater Victoria Real Estate Market started to recover and have benefited from the upswing in values for the rest of their respective lives.
Should You Rent or
Should You Buy
a Home In Greater Victoria, NOW?