REAL ESTATE POSTS

Support to End Family Violence in our Community

Kelowna Women’s Shelter Support and Education Programs Get Financial Aid from Local Real Estate Agents   Kelowna 28 January, 2020 – Broker Owners, Francis Braam, Steve Gray and Broker Manager Dave Favell of Royal LePage Kelowna presented a cheque to Executive Director, Allison Mclauchlan and Resource Development Coordinator, Ester Pike of the Kelowna Women’s Shelter. In 2019, Royal LePage Kelowna REALTORS® held fundraising events and donated part of their commissions to The Royal LePage Shelter Foundation throughout the year.  The result was more than $5,600 raised to help women and children who are served by the Kelowna Women’s Shelter each year. Supp...

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Working with a Mortgage Broker; just like dating!

Working with a Mortgage Broker; just like dating! Banks are declining more mortgage applications than ever, in fact, the borrower rejection rate from mortgage lenders has gone up by as much as 20% since Canada’s banking regulators imposed the stress test for home buyers. What this means is people need to get their application in front of more than one lender, lenders are human, and just because one person says no, doesn’t mean the next will, just like dating!! Working with a mortgage broker is like going on a dating website, we show you a number of different options, and you decide which mortgage likes long walks on the beach, and is a goo...

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Teaching Kids About Money

Teaching Kids About Money I’m often asked by clients if I can help their children prepare to buy a home? I love doing this because I think it is an area that our school system gets a failing grade. The next question I get is, when should they start learning about finances? I think it should start at a very young age with allowances, savings programs to buy that bike or pair of shoes. It’s a way of thinking not a level of intelligence. If kids learn at an early age that if they want something, they get it, then it shouldn’t be a surprise when we see the debt level many Canadians are carrying today in our instant gratification world. If...

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Home Ownership and Mortgages

Home Ownership and Mortgages – Good News, Bad News Stats Canada recently reported that home ownership in Canada has increased from 60% of families in 1999 to 63% in 2016. That’s good news for the Canadian economy and most families, but the bad news is the number of families who have paid off their mortgage has decreased from 46% to 43%. During this study period we saw record low interest rates, so in theory we should have had an advantage paying off our mortgages? I don’t think the rates are the issue, it’s our behavior, and changing our behavior can be very easy and yield great results. For example, on a $300,000 mortgage, if ...

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Recovery in Second Quarter

Canadian real estate market continues recovery in second quarter According to the Royal LePage House Price Survey1, during the second quarter of 2019 low interest rates and healthy employment offset the market drag caused by economic uncertainty that kept monthly unit sales volumes below the ten-year average2. As a result, home prices appreciated modestly at the national level. The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 1.1 per cent year-over-year to $621,696 in the second quarter of 2019. When broke...

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Before You Rake Those Leaves

Before you rake those leaves… Bagging leaves can be back-breaking work — what happens if you leave the leaves till spring? Many good things, as it turns out: Free mulch. Fallen leaves prevent weed growth and retain moisture just like wood mulch. They also protect lawns and gardens from scattered salt when the ice hits. Delicate plants thrive under a mat of wet or frozen leaves, and can easily push through in the spring. Shelter for bees and butterflies. Did you know not all Monarch butterflies migrate? A number of our fluttery friends overwinter in town! Caterpillars hide under fallen foliage, and friendly bumblebees use it to shield their eggs ...

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Fall is a Great Time for Homebuying

Why Fall is a Great Time for Homebuying When winter weather blows in, our impulse could be to hunker down and hide. However, house hunting in autumn can be to your advantage. Here are four reasons why: Better perspective. When it’s gloomy out, you’ll have a stronger idea how interiors look in low light. Also, leafy trees and shrubs can hide flaws around a home’s exterior or downspouts. Bare branches reveal areas in need of repair. Assess the action. In September, most neighbours have returned from the cottage and summer holidays. What could seem like a tranquil, traffic-free neighbourhood in mid-summer could be considerably more activ...

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Big Banks at Risk??

Are Big Banks at Risk? Are Canadian banks really at risk because of the high debt levels many Canadians are carrying? I just read the 3rd quarter bank earnings report (it was either that or watch the French language leaders debate) and was surprised by how little risk the 6 largest banks in Canada are actually taking. I looked at 3 key areas the banks could be at risk, the loan to value of the mortgage portfolio (how much debt vs property value securing the loan), the 90 day default rate, and the percent of the lenders book that was insured (guaranteed by the government of Canada). National bank of Canada had the highest overall loan to value of 60%, m...

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Is Real Estate Still a Good Investment for Canadians?

Is real estate still a good investment for Canadians? First, we definitely shouldn’t be making this decision based on the media headlines, as they definitely do not represent the facts about the housing market. Real estate investment has once again become a hot topic around many water coolers and dinner tables, I believe because of the volatility and uncertainty in the stock market. Chasing returns on the stock market can be very stressful and requires a lot of time and knowledge, and even then the returns have not been great. Today many people are looking into the less glamorous, but also less volatile world of real estate investing. The challen...

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Mortgage Rates 2020

What is in store for mortgage rates in 2020? I have made predictions for years, and I have been doing just a little better than the weather man, though I was almost bang on last year, proving even a blind squirrel finds the occasional nut!! The British Columbia Real Estate Association (BCREA) believes there will be no change in mortgage rates in 2020 and a modest increase in the economy rising up from 1.6% in 2019 to 1.8% in 2020. The bank economists are leaning towards a small decrease in mortgage rates of a quarter percent overall in 2020 and a modest increase in the economy. So I will be bold and issue a guarantee, mortgage rates will go up, down, ...

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Mortgage Rate: Not the only thing to consider

Mortgage Rate: Not the only thing to consider   Below are two examples that show why rate is not the only thing to consider when choosing a mortgage lender. $360,000 Scotia Mortgage 1 year into a 5-year term, the clients payout their mortgage and are charged a penalty. • Mortgage penalty the clients were actually charged $9500 • Penalty the clients would have been charged with a different lender $3200 • Difference $6300 $320,000 BMO mortgage 3 years into a 5-year term the clients went through a divorce and had to sell their home and payout their mortgage. • Mortgage penalty the clients were actually charged $12,480 • Penalty the clients would ha...

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Rental Suites Increase Qualifying Income

Rental Suites Increase Qualifying Income In today’s market with stricter mortgage rules, a rental suite can make a huge difference when qualifying for a mortgage and knowing which lenders offer the biggest bang for your buck is even more important. Different lenders allow different amounts of the rental income to be added into your qualifying income. Some lenders only allow 50% of the rental income to be used when qualifying for a mortgage, while others allow 80% and even 100%. If a lender allows 50% of the rental income, and the rent is $1200 per month, this will increase the mortgage you qualify for by just over $40,000, at 80% it increases you...

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Markets Are Stabilizing – House Affordability Isn’t

Markets Are Stabilizing – House Affordability Isn’t It looks like most housing markets in Canada are heading towards stability this year, not a crash, and while that’s good news for the economy at large, not everyone will be cheering.  A soft landing is in the cards. Not welcome news for potential home buyers, as affordability will only worsen in the year ahead, writes John Stackhouse, senior VP, office of the CEO of RBC, in an analysis published this month. Although the cost of borrowing has increased as the Bank of Canada has hiked it’s rate five times since July 2017, Stackhouse suggests certain fundamentals should support h...

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8 Tips the Banks Won’t Share with You in 2019

8 Tips the banks won’t share with you in 2019 If you’ve got a mortgage renewing or plan to get a new one this year you probably know that it’s more complicated than it used to be. That said, I have some tips and strategies that can help you get the mortgage you need, tweak the one you have, or help you plan for renewal. To get the best deal, you need options. When you go to your bank, you’re talking to one lender. Their best deal might not be THE BEST DEAL (last months article proved that). It’s also difficult to qualify at a bank if you’re self-employed, have past credit issues, or are finding the stress test a ch...

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Renewing Your Mortgage

Renewing Your Mortgage According to a recent survey of 2,000 Canadian homeowners, 19% will be renewing mortgages next year, 82% of whom are currently in a fixed rate mortgage. If you are one of these people the prospects aren’t as bleak as you may think!  That’s because those five year fixed terms were locked in on average at 3.65%, and mortgage holders can renew at similar rates today.  What this highlights is the way lenders work and the variation in rates that people get. Five years ago Canadians didn’t all get the best rates available. This is obvious when we see the average rate of mortgages renewing at 3.65%, when there were rat...

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First Time Buyers

First Home Guide Compliments of Genworth Canada Loading... Taking too long? Reload document | Open in new tab Download [3.41 MB]

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Should I Buy or Wait?

Should I Buy or Wait?   Should I buy now or wait a year as prices are dropping, but interest rates are rising? I hear this question daily, and my usual answer drones on about interest rate projections, supply, and demand for homes blah blah!! So I thought I would run the numbers and see what makes the most sense based on the numbers, not my opinion! Option 1 – If you bought a home for $100,000 and put 5% down and had an interest rate of 3.59% on a 5-year term amortized over 25 years you would have monthly payments of $498.46.  At the end of the first year, you would owe $96,397. That is a decrease in your mortgage of 2.53% over the first yea...

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Open Houses Tour: 6 Things To Do

Open Houses Tour: 6 Things To Do Looking for open houses in the Kelowna Area – visit www.KelownaOpenHouses.com     Loading... Taking too long? Reload document | Open in new tab Download [37.69 KB]  

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