In the last few weeks, the Bank of Canada has raised its overnight rate +0.75% . While that news may have you questioning the timing of your home search, the truth is, timing has never been more important. Even though you may be tempted to put your plans on hold in hopes that prices or rates will fall, waiting will only cost you more. (READ MORE HERE) and, Mortgage rates are forecast to continue rising in the year ahead.


If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage rates rise.


How Rising Mortgage Rates Impact You
Mortgage rates play a significant role in your home search. As rates go up, they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. So it is important to buy when RATES are LOW, not when PRICES are LOW.


With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of delaying your plans, today’s rates should motivate you to purchase now before rates increase more. Use that motivation to energize your search and plan your next steps accordingly.


The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a trusted lender, help you adjust your search based on your budget, and make sure you’re ready to act quickly when it’s time to make an offer.


Bottom Line
Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Work with a real estate professional to understand your budget and how you can be prepared to buy your home before rates climb higher.

Read full post

Lots of things swirling in our industry at the moment.  Here is a summary of the latest happenings:


INTEREST RATES ON THE RISE

The Bank of Canada recently increased its overnight policy rate by 25 basis points to 0.50 per cent, and on April 13, you can bet there is another hike coming.  Want to know how to prepare for rising rates?   Check out this short video that provides a great explanation:

https://youtu.be/uToRzqp0Ldk



 “COOLING OFF PERIOD”

The NDP is going to legislate what it calls a “cooling off” period for homebuyers under the Property Law Act so they can walk away from the contract for any reason.  It remains to be seen if this measure will actually address the heated market & help to bring prices down.

How will this impact YOU?

There is a recission period in the purchase of new Construction in BC.  It has been in place for many years; the intention was to protect Buyers in a situation where the other side is a more sophisticated party to the sale – a large Developer, with their own sales staff, their own contracts, and no physical property to show.  Clearly in this case there is more of a chance the Buyer is at a disadvantage.

In a typical residential real estate transaction, both sides are generally represented by real estate professionals, and there is more of a level playing field.  

Buyers –

The notion of a Homebuyer’s Protection Period is good.  Buyers DO need time for professional due diligence.   Prices are at an all time high; this is not an insignificant decision.

For Sellers –

At this point, with the limited information we have, we can presume there is going to be some uncertainty for you – until this recission period is over, you are not going to make any solid plans. 


For All –

There are many details missing at this point.  How long is the cooling-off period?  Will there be a penalty if you walk away & how much – and will this legislation change as the market shifts?  EG.  Would it be necessary in a market that ultimately favors Buyers, for example?.

Our BC Real Estate Association offered what we feel is a healthier solution.  A five-business-day delay in accepting bids following a listing. This would adjust the process of homebuying, be of benefit to both buyers and sellers, and create less uncertainty.

More importantly for the consumer, our industry’s proposal has a better chance of ensuring due diligence is actually performed by the Buyer so that they can be protected, rather than just having the ability to walk away.

And a note on the timing of this legislation.  We are in a time of increasing inflation.  We are seeing interest rates rising, and inventory increasing. That is beginning to temper demand. It is likely that by year end that this policy may be unnecessary.



THE FEDERAL BUDGET

The Federal Budget 2022 was housing-focused, with a significant amount of funding going towards quickly creating new, and diverse housing. 

The government plans to restrict foreign buyers and add a flipping tax on homes sold within 12 months of purchase.

First-time buyers will also get tax credit and access to a new, tax-free First Home Savings Account.

 Check out the budget online:  2022 Federal Budget

Read full post
Categories:   #IMHOME CONTEST | Ambleside, West Vancouver Real Estate | Annual Pumpkin Patch | Blueridge NV, North Vancouver Real Estate | Boulevard Real Estate | Boulevard, North Vancouver Real Estate | building | canuck place adventure challenge | Capilano Highlands, North Vancouver Real Estate | Capilano NV, North Vancouver Real Estate | Central Coquitlam, Coquitlam Real Estate | Central Lonsdale, North Vancouver | Central Lonsdale, North Vancouver Real Estate | Coal Harbour, Vancouver West Real Estate | Common Property | conquer cancer lynn valley, ride to conquer cancer | Deep Cove, North Vancouver Real Estate | Dollarton, North Vancouver Real Estate | Downtown VW, Vancouver West Real Estate | Dundarave, West Vancouver Real Estate | False Creek North, Vancouver West Real Estate | Forest Hills NV, North Vancouver Real Estate | Grouse Woods, North Vancouver Real Estate | habitable area | Hamilton, North Vancouver Real Estate | Heritage Woods PM, Port Moody Real Estate | Indian River, North Vancouver Real Estate | interest rates | Lions Bay, West Vancouver Real Estate | live in lynn valley | Lower Lonsdale, North Vancouver Real Estate | Lynn Valley, North Vancouver Real Estate | Lynnmour, North Vancouver Real Estate | Maintenance Fees | Municipality | North Vancouver Real Estate | Northlands, North Vancouver Real Estate | Oil Tank Removal | permits | Princess Park, North Vancouver Real Estate | pumpkin patch 2012 | Queensbury, North Vancouver Real Estate | Real Estate | Renfrew VE, Vancouver East Real Estate | Roche Point, North Vancouver Real Estate | Strata | Strata Lot | Strata Property Act | Tempe, North Vancouver Real Estate | Unit Entitlement | Upper Lonsdale, North Vancouver Real Estate | VNVED, North Vancouver Real Estate | Westlynn Terrace, North Vancouver Real Estate | Westlynn, North Vancouver | Westlynn, North Vancouver Real Estate
Blogs
Posts By Date
Categories
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.