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New Qualifying Rules for Uninsured Mortgages


 

 

Government adds new qualifying requirements for uninsured mortgages

 

Effective January 1, 2018, buyers who don’t require mortgage insurance — those with a down payment of 20 per cent or more — must qualify for their mortgage at a higher rate.

This new stress test won’t apply to people renewing their uninsured mortgage.

Canada’s Office of the Superintendent of Financial Institutions (OSFI) announced these rule changes today. Draft changes were released in the summer for public feedback. (The Canadian Real Estate Association submitted this response to the draft rules in August on behalf of REALTORS® across the country.)

Under the new rules, the minimum qualifying rate for uninsured mortgages will be the greater of the Bank of Canada’s five-year benchmark rate or the contractual mortgage rate plus two per cent.

OSFI will also require lenders to enhance their loan-to-value (LTV) limits and restrict certain lending arrangements designed to circumvent LTV limits.

These changes apply to all federally regulated financial institutions.

This is the seventh time since 2008 that the federal government has made mortgage policy changes.

Read the government’s full announcement here.

Economic analysis from the BC Real Estate Association (BCREA):

“The impact of the new stress test requirement will be to lower the purchasing power of households by up to 20 per cent. Like past tightening of mortgage regulations, we anticipate that the market impact will be sharp but temporary. In the past, we’ve seen home sales decline in the three to nine months following the implementation of tighter mortgage lending standards, with the severity of the impact fading within one year. However, these new regulations impact a larger pool of mortgages and so the impact could be more significant than in the past,” said Cameron Muir, BCREA chief economist



Market Update September 2017 stats


 

 

Home buyer demand continues to differ based on housing type

Apartment and townhome activity is outpacing the detached home market across Metro Vancouver. This activity helped push total residential sales above the historical average in September.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,821 in September 2017, a 25.2 per cent increase from the 2,253 sales recorded in September 2016, and a 7.3 per cent decrease compared to August 2017 when 3,043 homes sold.

Last month’s sales were 13.1 per cent above the 10-year September sales average.

“Our detached homes market is balanced today, while apartment and townhome sales remain in sellers’ market territory,” Jill Oudil, REBGV president said. “If you’re looking to enter the market, as either a buyer or seller, it’s important to understand these trends and use this information to set realistic expectations.”

There were 5,375 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2017. This represents a 12 per cent increase compared to the 4,799 homes listed in September 2016 and a 26.6 per cent increase compared to August 2017 when 4,245 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,466, a 1.2 per cent increase compared to September 2016 (9,354) and a 7.5 per cent increase compared to August 2017 (8,807).

“Detached homes made up 30 per cent of all sales in September and represented 62 per cent of all the homes listed for sale on the MLS®,” said Oudil. “This dynamic has slowed the pace of upward pressure that we’ve seen on detached home prices in our market over the last few years.”

For all property types, the sales-to-active listings ratio for September 2017 is 29.8 per cent. By property type, the ratio is 14.6 per cent for detached homes, 42.3 per cent for townhomes, and 60.4 per cent for apartments.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,037,300. This represents a 10.9 per cent increase over September 2016 and a 0.7 per cent increase compared to August 2017.

Sales of detached properties in September 2017 reached 852, a 27.9 per cent increase from the sales recorded in September 2016 (666), a decrease of 33 per cent from September 2015 (1,272), and a decrease of 32.9 per cent from September 2014 (1,270). The benchmark price for detached properties is $1,617,300. This represents a 2.9 per cent increase from September 2016 and a 0.1 per cent increase compared to August 2017.

Sales of apartment properties reached 1,451 in September 2017, a 19.1 per cent increase compared from the sales recorded in September 2016 (1,218), a 5.1 per cent decrease from September 2015 (1,529), and a 22.1 per cent increase from September 2014 (1,188). The benchmark price of an apartment property is $635,800. This represents a 21.7 per cent increase from September 2016 and a 1.4 per cent increase compared to August 2017.

Attached property sales in September 2017 totalled 518, a 40.4 per cent increase compared to the sales recorded in September 2016 (369), a 4.8 per cent decrease from September 2015 (544), and an 11.6 per cent increase from September 2014 (464). The benchmark price of an attached home is $786,600. This represents a 14.5 per cent increase from September 2016 and a 1.1 per cent increase compared to August 2017.

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Recently Sold Listing 505 - 1315 Cardero Street, Vancouver, BC


R2201274 - 505 - 1315 Cardero Street, Vancouver, BC, CANADAI have just recently sold this listing at 505 - 1315 Cardero Street, Vancouver.

New Listing 603 - 1600 Hornby Street, Vancouver, BC


R2205839 - 603 - 1600 Hornby Street, Vancouver, BC, CANADAView my new listing for sale at 603 - 1600 Hornby Street, Vancouver and currently listed at $1,998,000.

Waterfront living in Yacht Harbour Point @ Southern foot of Hornby Street. SW facing apartment with False Creek water view. Spacious kitchen, dining and living room, KING-sized master bedroom with ensuite bath and walk-in closet, 2nd bedroom with Murphy bed, large office with built-in storage, plus a 12' x 5'7" balcony with water view. Seawall & foot passenger ferry to Granville Island at your doorstep. Yacht Harbour Pointe is one of the few lower rise (10 storey) buildings on Yaletown's waterfront with only 55 residences and a marina. Concierge, gym, guest parking, bike storage, includess 2 parking stalls and storage locker. Pet(s) allowed; Rentals at max so NO VACANT HOME TAX.

Recently Sold Listing 802 - 1315 Cardero Street, Vancouver, BC


R2200028 - 802 - 1315 Cardero Street, Vancouver, BC, CANADAI have just recently sold this listing at 802 - 1315 Cardero Street, Vancouver.

New Listing 505 - 1315 Cardero Street, Vancouver, BC


R2201274 - 505 - 1315 Cardero Street, Vancouver, BC, CANADAView my new listing for sale SOLD at 505 - 1315 Cardero Street, Vancouver and currently listed at $919,000.SOLD

Mid-century modern 2 bedroom, 2 bathroom co-op apartment facing English Bay in reputable Dianne Court. This apartment has it all: original oak hardwood flooring, balcony facing English Bay, windows all sides-- South, West, East, allowing for refreshing cross-breeze and English Bay view from living room, dining room, kitchen, bedroom, plus privacy from tress on SE side, '50s style large rooms too. The apartment has updated kitchen and bathrooms with excellent quality tile work and loads of storage incl. locker. Co-op requires min 35% down payment & board approval. NO: rentals, pets, smoking, must be 19+ years, max 2 occupants/suite allowed. Open Sat/Sun Sept 2/3 2:00-4:00, by Seller's instructions offers if any Wednesday September 6th by 5 pm.

New Listing 802 - 1315 Cardero Street, Vancouver, BC


R2200028 - 802 - 1315 Cardero Street, Vancouver, BC, CANADAView my new listing for sale SOLD at 802 - 1315 Cardero Street, Vancouver and currently listed at $1,080,000.SOLD

MID-CENTURY MODERN PENTHOUSE @ Dianne Court w English Bay view in prime West End location! Seawall at your doorstep but not traffic noise, shopping a block away on Davie St. 1950s-size principal rooms: 30' x13' living/dining room w oak floors, wall of windows facing English Bay & a 43' sunny terrace with ocean view for al fresco entertainment-a Green Thumb's heaven. Master bedroom with ensuite bath, 2nd bedroom (Murphy bed) + 2nd full bath w shower and washing machine, plus spacious bright den/office with wall of windows onto water view. Galley kitchen with lots of light and good storage, newer appliances. Co-op building requires 35% min downpayment, NO:rentals/pets/smoking/age 19+

New Community to be developed harbourside in North Vancouver


There is a new community coming to the North Vancouver waterfront.  Read about it in Vancity Buzz:

north vancouver harbourside waterfront

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Condo Prices Keep Rising in Vancouver


From the Real Estate Weekly:

 

Buyers, be prepared to bid high on Vancouver condos

Almost two-thirds of the condos sold in Vancouver proper last week went for over asking price

 

JOANNAH CONNOLLY / HTTPS://WWW.REW.CA/

AUGUST 11, 2017 05:42 PM

REW.CA

 

     
 
 

Even as the summer sales slowdown deepens, the proportion of homes being sold over their asking price continues to hold steady – or even rise, in the case of Vancouver condos.

There were 16 detached home sales in Vancouver proper from July 31 to August 6 (registered sold as of August 10), exactly half went for more than their asking price. The biggest price leap was a fairly modest 6.24% above list, seen in the sale of an East Vancouver family home that sold for $1,805,000 after eight days on the market.

However, of the 69 condos that have so far been registered as sold the same week, 45 units – more than 65 per cent – went for over asking price. The median price of a Vancouver condo sold that week was $

In fact, the priciest home to be registered by August 10 as sold July 31-August 6 – not just in Vancouver proper but across the entire Greater Vancouver region – was a condo. A stunning 15th-floor Coal Harbour corner unit with 1,772 square feet of living space and the obligatory spectacular mountain views, it sold for $5,030,000 after 30 days, bucking the trend by going for $170K under list.

Townhouses (including half-duplexes and row homes) saw a very high median selling price last week at $1,215,900.

Of the 13 townhomes that sold the same week, seven were traded for above sticker price, including a one-bedroom, two-level townhouse in Fairview that went for nearly 40% over asking. This 747-square-foot home sold for $790,000, a whopping $235K above its $565,000 list price, after eight days listed.

The priciest townhome to sell last week was a luxurious waterfront Yaletown unit that sold for $3,490,000 after 48 days on market, $109K below list price.

And the most expensive detached house to sell that week, registered as of August 10, was a beautiful heritage-style, 2003-built house in MacKenzie Heights on the West Side, which sold for $3,410,000. This four-bedroom house took 17 days to sell for $130,000 under asking.

Even though total listings and median days on market increased for every home type, compared with the previous week, so did the median list price in every category, for all Vancouver homes listed as of August 10.

REW stats

Joannah Connolly is the editor of REW.ca.

 
 

© 2017 Vancouver Courier


Vancouver West Stats for June 2017


Click below for the Real Estate Board of Greater Vancouver's stats for June 2017: 

 

Vancouver West Stats June 2017

 

 

West Side condo listings are down over 17% year over year and as a result of low inventory condo sales are down 20% year over year.

West Side detached listings are up 10% year over year while sales are off by 25% year over year and days on market are up 20%.

West Side town home supply is up over 20% in a year, while sales are off close to 5% and are taking 26% longer to sell than last year.

 

All types of West Side homes have seen price increases since last year with condos up over 10% on the benchmark price.