BIG Announcements on Sept 16th, 2024

General Bronwyn Fuss 24 Sep

Last week was a BIG week for the Mortgage and Real Estate Industry.  So let me break it down!!

3 key points:

  • CMHC Mortgage Cap raised to $1.5 million and extended amortization length
  • Amortization Extension for First time homebuyers
  • Cuts to the US Federal Reserve

Breakdown 

CMHC Mortgage Cap raised to $1.5 million

The Government has capped the insured mortgage limit to $1.5 million from the previous $1 million.  This allows buyers to now qualify for a mortgage with less than 20% down on homes with a value up to $1.5 million.  So, if you were looking at that dream home that was priced at $1,125,000 and you have a down payment available of $135,000 you can now qualify for that property with an insured mortgage.  The government has just announced the details of how down payments are broken down, a buyer will need 5% on the first $500,000 and 10% on the remaining $500,000 to $1.5.  When looking at a property valued at $1.5 million buyers needed $300,000 now with these new rules the amount required has been brought down to $125,000.  Not only was the insured mortgage cap raised, first time home buyers will have the ability to extend their amortization to 30 years rather than the previous 25. Adding on to the previous announcement of anyone purchasing a brand-new build as well!  These changes will come into effect on December 15, 2024.

Amortization Extension for First Time Home-buyers

First time home buyers have been added to what was already announced 30-year amortization.  It was announced previously that buyers purchasing a brand-new build will have the option to extend their amortization to 30 years from the previous 25.  Well now the government has announced that they will also apply that to first time home buyers.  Making it just a bit more affordable to get into this Market.

Cuts to the US Federal Reserve

The Federal Reserve has made a shocking move of trimming its rates by .50%.  It is predicted that this allows the Bank of Canada to feel more comfortable to implement further rate cuts without decreasing our currency.  If unemployment continues to increase both banks will likely expedite more rate cuts.

 

All this is good news for the home buyers out there.  If you are looking to purchase that dream home, your current mortgage is up for renewal, or you just want to see what your options are right now.  It is time to reach out and start the conversation.  The time is now to get control of your biggest asset!

https://www.canadianmortgagetrends.com/2024/09/federal-government-releases-technical-details-of-its-latest-mortgage-changes/

https://www.cnbc.com/2024/09/18/fed-cuts-rates-september-2024-.html

August Mortgage Market Roundup: Vancouver Lower Mainland

General Bronwyn Fuss 29 Aug

August Mortgage Market Roundup: Vancouver Lower Mainland

Hey, hope you’re doing well! Let’s dive into what happened in the Vancouver mortgage market this past August. It was a bit of a mixed bag, but overall, we’re seeing some positive signs.

Where We Stand: August kicked off with a pretty high inventory—actually, the most we’ve seen since 2019. That’s given buyers more choices, but also led to a bit of a standoff. Sellers have been holding out for better prices, and buyers are waiting to see if rates will drop. It’s kept things balanced but slow.

Interest Rates and Buyer Behavior: Interest rates are still up there, but everyone’s keeping an eye on the Bank of Canada. There’s buzz about rate cuts coming soon, and that’s got some buyers off the sidelines. We’re starting to see more activity as folks look to lock in something before the rates change. If you’re thinking about getting in the market, it might be worth keeping an ear to the ground.

Pricing Trends: Price-wise, it’s been a bit of a rollercoaster depending on where you’re looking. Areas like Anmore and White Rock saw some decent price growth, while Vancouver itself had a slight dip. On the whole, prices are expected to creep up by around 2.9% by the end of the year, especially if the market tightens up as we expect​(Zolo,

CityNews Vancouver).

Looking Ahead to September

What to Expect: So, looking forward to September, we might start seeing a bit more momentum. If the Bank of Canada signals rate cuts, it could push a lot of buyers to make their move, which could tighten the market and start driving prices up, especially in the more affordable segments.

Price Movements: We’ll probably see prices start to stabilize, maybe even edge up a bit more in the coming weeks. If you’re in the market, especially for something smaller or more affordable, now might be a good time to start looking. Once those rates drop, demand could spike.

Sales Activity: I’m expecting a pickup in sales activity, especially in entry-level properties like condos. People who’ve been waiting on the sidelines are likely to jump in before the rates drop too much. So, if you’re considering a move, it’s worth keeping an eye on the market as we head into fall​(MPA Magazine).

In short, September’s shaping up to be a pretty interesting month. If you’re thinking about buying or selling, it could be a good time to start making some moves! Let me know if you need any help navigating the market.

Small Home Improvements That Make a BIG Impact.

General Bronwyn Fuss 19 Aug

Whether you’re looking to sell your home this year, or just want to make some updates, I have put together six small home improvements that can make a BIG impact on your space! From improving saleability to refreshing your home, here are some simple and affordable ideas to help get you started:

  • Painting: One of the easiest ways to spruce up your home for a refreshed vibe or sale is to add a new coat of paint! While it is a relatively simple task for a new homeowner to take on, you might be surprised at how many people will pass on a house because they are not a fan of the paint colors or the flooring. A fresh coat of paint – especially more neutral colors such as beige, cream, light grays, and soft blues or greens – can do wonders to make a home feel appealing.
  • Light Fixtures: I don’t know about you, but I haven’t taken a good look at my light fixtures in a while. However, potential buyers will! Light fixtures are another low-cost and relatively easy improvement you can make to your home. Upgrading to newer styles and ensuring they are clean, with fresh LED bulbs, will help add an extra sparkle to your home!
  • Update Your Hardware: Another overlooked aspect of a home are light switches and door handles. If your home is 20 years old, most likely your white light switch covers are not so “white” and your door handles are a little worn down. These are a cheap and easy replacement that will go a long way to boost your interior!
  • Swap Out Your Window Coverings: Just like with a fresh coat of paint or new hardware, swapping out your window coverings is a small change that can make a big impact. Change your stale, white plastic blinds for wooden slats, or update your curtains to something fresh and vibrant!
  • Refinish Your Cabinets: The kitchen is known to be a central space in most homes, but did you know roughly 80% of homebuyers feel that it is the most important space to consider when deciding on a new home? While a full kitchen renovation may be out of the question and all-new kitchen cabinets can cost thousands, there is a third option. Refinishing or repainting your cabinets is a great alternative for breathing new life into your kitchen!
  • Curb Appeal: They say don’t judge a book by its cover but, when it comes to selling your home, first impressions matter. This is where curb appeal comes in! If a potential buyer pulls up to see overgrown weeds, clogged gutters, or cracked concrete, they are already going to have a negative impression of the home and it will be harder to impress them once they are inside. Attending to landscaping and any outside maintenance needs will go a long way in making your home more appealing. A pressure wash and a new coat of exterior paint can also do wonders to give your home a facelift!

By putting the effort into completing a few small changes around your home, you can reap big rewards when it comes time to sell – and increase your comfort in the interim!

Living Comfortably and Securely at Home with the CHIP Reverse Mortgage.

General Bronwyn Fuss 18 Jul

What is Aging in Place?

Aging in place refers to living safely, comfortably, and independently in your home for as long as possible. It involves having access to necessary services, healthcare, and support to ensure security and comfort at home.

The Benefits of Aging in Place

More than 90% of Canadians dream of aging in place. Staying in your home allows you to remain rooted in your community and preserves the memories you’ve created. It also means maintaining independence without adhering to a structured mealtime or activity schedule. Being close to family and friends and continuing day-to-day activities that bring meaning and fulfillment can enrich your quality of life.  Here’s a quick overview of the benefits of aging in place:

  • You don’t have to downsize your home or your possessions
  • Enjoy the comfort and familiarity of your home and surroundings
  • Maintain control over your daily schedule
  • Keep your independence and privacy

Overcoming Challenges with the CHIP Reverse Mortgage

Financial challenges, reduced mobility, and costly home modifications can make aging in place difficult. Fortunately, the CHIP Reverse Mortgage by HomeEquity Bank can allow Canadian homeowners aged 55+ to access up to 55% of their home’s value in tax-free cash. You can receive funds as a lump sum, monthly, quarterly, or a combination, with no required payments until you move or sell your home.

How the CHIP Reverse Mortgage Supports Aging in Place

Here are three ways that funds received from the CHIP Reverse Mortgage can support you:

  1. Home Improvements for Accessibility:  Enhance your home’s accessibility and safety, such as adjusting electrical switches or relocating the laundry room to the main floor.
  2. At-Home Care: Hire cleaning services or in-home caregivers to ensure you receive the necessary assistance.
  3. Support for Assisted Living: If a spouse or loved one needs to transition to assisted living, the CHIP Reverse Mortgage can provide financial support.

Contact your Dominion Lending Centres mortgage expert today to discover how the CHIP Reverse Mortgage can empower your journey of aging in place.