December 2016 Market Statistics | Sunshine Coast BC

Please see the chart below describing the Market Trends for December 2016 on the Sunshine Coast BC.

When buying or selling a home, everyone wants the most advantageous situation. Both buyers and sellers want “the best price,” but this definition varies: Home buyers want to purchase the desired property at a good deal, while sellers want to receive their asking price.

A Balanced Market is a perfect solution being that you sell and buy within the same market (which is a huge advantage for those who are risk adverse in the Real Estate Industry).

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Federal Changes in Lending Criteria

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On October 3, 2016, the federal government released new rules that apply to your ability to qualify for a mortgage. The following statements will be released.

To help ensure new homeowners can afford their mortgages even when interest rates begin to rise, mortgage insurance rules require in some cases that lenders “stress test” a borrower’s ability to make their mortgage payments at a higher interest rate. Currently, this requirement only applies to a subset of insured mortgages with variable interest rates or fixed interest rates with terms less than five years. Effective October 17, 2016 (TOMORROW), this requirement will apply to all insured mortgages, including fixed-rate mortgages with terms of five years and more. Homeowners with an existing insured mortgage or those renewing existing insured mortgages are not affected by this measure.

What does this mean?

1. As of October 17, 2016, any arranged mortgage that is an insured mortgage has to qualify at 4.64%. This means:

How this affects you?
Your purchasing power will likely decrease. Historically, clients have been able to qualify at the 5 year discounted rate (for example, current 5 year rates are at about 2.49%).

2. As of November 30, 2016, any mortgage that is back end insured (regardless of down payment amount or equity) has to qualify at 4.64%.

How this affects you?
The amount of equity that you can take from your owner occupied home could decrease, based on you ability to debt service. Although you can still mortgage up to 80% of the appraised value of your home, you will have to qualify at 4.64%.

3. As of November 30, 2016, any low-ratio insured loans (mortgages with more than 20% down) will have to comply to new criteria. Monoline lenders are notably lenders that do low -ratio insured mortgages.

How this affects you?
Property has to be owner occupied. No rental properties
Maximum amortization of 25 years
Maximum property purchase of $1,000,000
Minimum credit score of 600

For more information on these announcements please click on the following link:

http://www.fin.gc.ca/n16/data/16-117_1-eng.asp

http://www.fin.gc.ca/n16/data/16-117_2-eng.asp

http://www.cbc.ca/news/canada/british-columbia/first-time-homebuyers-take-hit-with-new-mortgage-rules-1.3795836

Attention First Time Home Buyers…..

Yesterday, the Liberal government announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates. The changes are also meant to address concerns related to foreign buyers who buy and flip Canadian homes.

Below is a breakdown of the four major changes Finance Minister Bill Morneau announced Monday. To read more, click on the link below or feel free to ask me!

1. Buyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance.

2. As of November 30, the government will impose new restrictions on when it will provide insurance for low-ratio mortgages.

3. New reporting rules for the primary residence capital gains exemption.

4. The government is launching consultations on lender risk sharing.

To read more about these changes and who they impact, please click here.

20th Anniversary Of The Pender Harbour Jazz Festival This Weekend!

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WELCOME TO THE 20TH ANNIVERSARY OF THE PENDER HARBOUR JAZZ FESTIVAL, SEPTEMBER 16-18, 2016. WE’RE GOING TO HAVE A BIRTHDAY PARTY!

This annual event showcases many different styles of jazz styles to appeal to every ear: Straight up, Swing, Boogie Woogie, Big Band, Gypsy, Afro, Fusion, Gypsy, 30’s and 40’s, Hot Latin and more. Bring your blankets, umbrellas, sun hats, sun screen, dancing shoes, and have a great time!

Continuing their Icon Series, the festival is showcasing 2 Canadian Icons: BILL COON and OLIVER GANNON with TWO MUCH GUITAR.

The Big Band this year is the amazing Juno and WCA nominated JACLYN GUILLOU with her tribute to Dinah Washington, ‘This Bitter Earth.’ The 2 set performance will be at Saturday’s JAZZAPALOOZA.

And this year they have added a new tradition: Gospel Hour on Sunday morning, taking you back to one of the roots of Jazz. Their inaugural group is THE SOJOURNERS, A Cappella, at the School of Music.

Check out their Programme here!