Diane Birk

Love Where You Live.......Real Estate in Vancouver

The Bank of Canada announced today that it is keeping its key rate unchanged, noting that the global economy appears to be stabilizing with growth expected to edge higher in the coming years, although uncertainty relating to ongoing trade conflicts continues to be a risk. A resilient Canadian economy, with investment spending stronger than expected, has allowed the Bank to hold rates while...

Read full post

I have sold a property at 10511 LEONARD RD in Richmond.
Flat, rectangular 6045 sf. lot, no ditches, no easements, suitable to hold or build. Large family home can be renovated. House is solid but mostly original condition - large family sized kitchen has been updated. Solid Oak Hardwood flooring under carpets is in good condition, 2 wood burning fireplaces. Great layout to create a...
Read full post

The Bank of Canada announced today that it is keeping its key rate unchanged, making Canada an outlier as many countries around the world have responded to a weakening global economy by lowering rates. The Bank noted that Canada's economy has held up well but will be tested as trade conflicts and uncertainty persist. Going forward the Bank will be closely watching our main sources of strength which...

Read full post

While persistent trade tensions are affecting global economic momentum, the Bank of Canada announced today that it is keeping its benchmark rate unchanged. While growth in Canada has been strong, the Bank expects this to be temporary with economic activity expected to slow in the remainder of the year. The Bank believes the current accommodative interest rate policy to be appropriate, although they...

Read full post

The Bank of Canada announced today that it is keeping its benchmark rate unchanged as persistent trade tensions are having a material effect on the global economy. These ongoing trade conflicts cloud the outlook for the Canadian economy, which is returning to potential growth. As a result, the Bank deems that the current accommodative interest rate policy remains appropriate.


The next rate-setting...

Read full post

I have sold a property at 16 4163 SOPHIA ST in Vancouver.
This beautiful, bright townhome in a private, quiet setting just off Main is sure to impress. Gorgeous newly renovated kitchen with gas range and office nook, large open living and dining rooms, the master bedroom fits a king size bed, and includes walk in closet with built in organizers. With separated bedrooms, each with its...
Read full post

The first-time buyer incentive, launching on September 2nd, is a shared equity program designed to reduce mortgage payments for qualifying first-time buyers who have the minimum 5% downpayment required for an insured mortgage. The Canada Mortgage and Housing Corporation (CMHC) will provide 5% of the cost of an existing home, or 10% of a new home. This incentive isn't payable until you sell the property and is not charged interest.


Mortgage Payments - CMHC's First-Time Buyer Incentive


No Incentive

5% Incentive

10% Incentive

Purchase Price

$500,000

$500,000

$500,000

5% Down

$25,000

$25,000

$25,000

Incentive

$0

$25,000

$50,000

Mortgage

$475,000

$450,000

$425,000

Mortgage +
Mortgage Insurance

$494,000

$463,950

$436,900

Monthly Payment

$2,310

$2,170

$2,043

Monthly Savings


$140

$267

Yearly Savings


$1,680

$3,024

Assumes 25 yr am, 5 yrs, 2.89%


There are a few caveats. If your household income is more than $120,000, you aren't eligible for the program. And your total borrowed amount (including the incentive portion) can't be more than four times your household income. With a household income of $120,000, the maximum purchase price would be approximately $505,000 with 5% down, and about $565,000 for a 15% downpayment.


You are required to pay the incentive back after 25 years or when you sell the home, with the repayment amount based on the property's fair market value, whether it has increased or decreased in value. If you received a 5% incentive and your $500,000 home increases in value to $600,000, then you are required to repay $30,000. If the value deceases to $450,000, you'll repay $22,500. You can repay the incentive at any time without penalty.

This new incentive program has certainly added another layer of complexity to the already complicated mortgage world. Getting expert advice throughout your mortgage years is more important than ever.


Source:  Invis Financial

...
Read full post

 


How much do you need?
Not surprisingly, most Canadian homebuyers purchase a property with the absolute minimum downpayment. The thing is, the minimum can vary, so you want to be sure you know how it's calculated.


Will you live in the home? If the house will be owner-occupied, then you need 5% down for the first $500,000 of the purchase price, and 10% for any amount over $500,000 up to $999,999. If the purchase price is $1,000,000 or more, the minimum down is 20%.


Hoping to skip the cost of mortgage default insurance? Then you'll need at least 20% down. Any downpayment less than 20% of the purchase price requires this insurance, which will be added to your mortgage principal.


Buying a rental or recreational property?If it's not going to be your own principal residence, then you'll need 20% down. Genworth and CMHC have a vacation/second home program that allows you to put 5% down but mortgage default insurance will be required. Rental properties require 20% down.


Are you new to Canada? If you're a permanent resident, then you'll need the same downpayment as a Canadian citizen: 5% for the first $500,000 and 10% after that. If you are a non-permanent resident, then you may need 10% down. And if you're not a resident of Canada, then you'll need at least 35% down from your own resources (not borrowed).


Smart ways to come up with a downpayment

If you're looking to buy a second home, then your best path to a downpayment is often to refinance your existing home. A review of your situation is the best starting point.

If you're saving for your first home, here are some ways to come up with the cash:

  1. A financial gift: If you're lucky enough to have financial support from a parent or other blood relative, you'll need to get a form signed that says the funds are a gift and that you are not required to pay the money back at any time.
  2. Your RRSP: You can withdraw up to $35,000 tax-free from your RRSP or $70,000 per couple. The recent federal budget increased this from $25,000 and also announced that in 2020, this program will be available to divorced individuals. You will be required to pay the funds back over 15 years.
  3. TFSA/Investments: If you withdraw from your TFSA to boost your downpayment, you're allowed to re-contribute, so you never lose your TFSA room. If you haven't set up a TFSA, then do it today and set it up so money goes in every month.
  4. Early inheritance: Many parents and grandparents would rather help with the purchase of a home while they're alive rather than having their children wait for an inheritance.
  5. Sell assets: For instance, a vehicle, or jewelry. You need to show 3 months of bank statements to support your downpayment, and explain any large deposits.
  6. Money from outside of Canada: If you're bringing funds from outside of Canada, you'll want to have those funds in Canada for at least 30 days before closing, and you'll need to provide 3 months of financial history from the original account they came from.

Often homebuyers are actually closer than they think to buying that first or next property. 


** This information is current as of May 7, 2019, and lending practices are subject to change at any time.  


Source:  Invis Financial

...
Read full post

I have sold a property at 2455 PANDORA ST in Vancouver.
A rare offering, newer home with 4 bdrms up, 2 bdrm bsmt suite down and a 1 level 688 sq ft 2 bdrm Laneway house in the back. Custom built for the current owners, the main flr offers a versatile open floor plan, custom kitchen w/high end appliances and finishes. Upstairs Master bdrm w/walk-in closet & huge en-suite bthrm with ...
Read full post

The Bank of Canada announced today that it is keeping its key rate unchanged. The Bank noted that while a slowing economy was anticipated in late 2018 and early 2019, the slowdown was in fact "sharper and more broadly based" than expected. While there was growth in employment and labour income, consumer spending, the housing market, exports and business investment all fell short...

Read full post

I have sold a property at 1738 7TH AVE E in Vancouver.
Beautiful 1/2 Duplex on one of the most desired tree-lined streets near The Drive! Exceptional floor plan, great for families. 3 Beds & 2 Baths up, with a Powder on the Main. Spacious and bright open floor plan, perfect for entertaining. Large pantry next to the Kitchen, a cook's dream. French doors open to the sunny patio & yard....
Read full post

The Bank of Canada announced today that it is keeping the key rate steady. The Bank continues to judge that the policy rate will need to rise into a neutral range to achieve the inflation target, but that will happen over time. Going forward, rates increases will depend on key factors – global trade uncertainty, the housing market, and developments in the oil sector. The next rate-setting day...

Read full post

I have sold a property at 306 1928 11TH AVE E in Vancouver.
This niche pocket in Grandview Woodlands area brings you a peaceful and spacious living experience. Top floor, North-West facing unit receives ample sunshine being a corner unit. This updated home brings comfort, convenience and reliability. The building has completed an envelope renovation in 2011: rainscreened, doors, windows,...
Read full post

I have sold a property at 601 1935 HARO ST in Vancouver.
One of the best locations in the city! This fully renovated 1006sqft, 2 bedroom, 2 bathroom has it all. Studs-out high end reno includes new kitchen with Fisher and Paykel fridge, induction range, Miele dishwasher & washer/dryer. As well as beautifully updated bathrooms and built in speakers throughout. S/E facing corner unit...
Read full post

As many economists expected, the Bank of Canada announced today that it is increasing the overnight rate .25 per cent, noting that the "policy interest rate will need to rise to a neutral stance to achieve the inflation target." As for the pace of future rate increases, the Bank will take into account how the economy is adjusting to higher rates, household debt levels, and global trade policy developments....

Read full post

The Bank of Canada announced today that it is keeping the overnight rate unchanged as they monitor the evolution of NAFTA negotiations and the outlook for inflation. Household debt levels are improving, the housing market is stabilizing, and business investment and exports are “growing solidly”. The Bank noted that higher rates will be warranted but they “will continue to take a gradual...

Read full post

I have sold a property at 102 2336 WALL ST in Vancouver.
Welcome to Harbour Shores, fully RAINSCREENED, new windows, balconies, membrane & drainage in 2017! Pet lovers & gardeners will love the massive, fully fenced patio/yard, with a bit of mountain view. Renovated kitchen with newer appliances, quartz counters, under-mount sink. Dining room has built in buffet with quartz counters...
Read full post

As many economists expected, the Bank of Canada announced today that it is increasing the overnight rate .25 per cent, the fourth increase since last summer, given strong economic improvements. The economy and job market are performing well, housing is beginning to stabilize, oil prices have gone up, exports are strong and businesses are spending. The Bank also wants to keep inflation near target. The...

Read full post

I have sold a property at 701 1736 10TH AVE W in Vancouver.
Welcome to Monte Carlo, a unique boutique hi-rise in Fairview, offering 2 indulgent suites per floor. Enjoy more than 180 degree views from the ocean/city/mountains to Shaughnessy. This bright home features North/South/East exposures with large windows. Downsize without sacrifice - a rare large 3 bedroom home, with over-sized...
Read full post

I have sold a property at 305 711 6TH AVE E in Vancouver.
Great investment opportunity in the heart of Mount Pleasant! Walk to Main Street, VCC/Clark Skytrain, Emily Carr, Van Tech, False Creek, Olympic Village, Broadway & China Creek Park! Quiet, south facing 1 bedroom suite, with balcony, overlooking mature landscaping. 1 parking & 1 locker included, in-suite storage, pet friendly,...
Read full post
Diane Birk
Office: 604-408-9311
Fax: 604-408-6648
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.