By ebizniz on April 4, 2008 - 4:54pm
Since June 2007 when Canadian Prime rate was raised from 6.0% to 6.25%, the credit seized-up in August forced the central banks of Canada to ease-up and cut interest rates from 6.25% in November 2007 to 6.0% in December followed by a further cut in January to 5.75%.
Canada followed the US aggressive cut in interest rates last month and made another rate cut from 5.75% to 5.25%. The next rate setting meeting by the Bank of Canada on April 22 this month is expected to result in another 0.25% to 0.50% reduction.
So far, Canadian Prime Rate had fallen 1.0 full percentage point, but Canadian Banks are slow to reduce their posted mortgage rates. Prior to the rate reductions, Canadian posted mortgage rates by Canadian Banks and credit unions were from 7.35% for 1-year term to 7.49% for 5-year term. Currently, the posted rates for 1-year and 5-year are at 7.15% and 7.19%.
The reason for the small reduction in the posted rates may be attributed to Canadian Banks taking advantage of the higher interest rate spread to beef-up their balance sheets. Some Canadian banks were reported to be badly affected by their subprime losses.
By ebizniz on December 31, 2007 - 7:09pm
Why buy a townhouse or condo?
Detached houses in the Greater Vancouver averaging around $700,000 have become unaffordable and out of reach by most home buyers. According to the November 2007 sales statistics released by the Real Estate Board of Greater Vancouver, townhouses were averaging around $438,000 and condos $370,000.
You can find out from the local real estate newspapers or search online to learn more about home prices in various municipalities around Greater Vancouver. Properties listed on the Multiple Listing Service System can be found online through RealtyLink Online at
For most home buyers, both the needs and budget consideration are the 2 main reasons for their choice. If a family can manage with the higher mortgage payment, buying a townhouse will leave room for a growing family. Otherwise, a condo will be more appropriate for most home buyers who are still single, active and like the many modern amenities of condo living.
It is always advisable to get the help of an experienced local Realtor to look for the home you wanted to buy. If you are looking for a place in Richmond, you can check out the market by getting in touch with James Wong.
By ebizniz on December 20, 2007 - 9:01am
Can anyone buy real estate online?
The answer is yes, but with qualification.
Buying real estate online has many limitations and it is not for the average home buyers. Such purchases are mostly confined to new condo purchases by oversea or out-of-town buyers. Even then, these buyers are well informed about the local real estate market, real estate taxes and they use local Realtors and the services of local property management companies where required.
Online real estate sale transaction should be more appropriately called long distance real estate transaction. Such sale transactions happened but they form a small percentage of the overall transactions. Real estate purchases are fairly large financial commitments, home buyers are just not comfortable making such major commitments online and sight-unseen.
Most real estates are bough and sold by local people. The process of buying a property involves viewing the property, checking out the neighbourhood, home inspection, etc. Virtual tours and audio/video shows help in the marketing, but ultimately buyers want to physically view the properties before buying.
If you are looking for real estate information in Richmond or South Vancouver, you can contact James Wong at Re/Max Westcoast.
By ebizniz on December 19, 2007 - 12:17pm
Communication is not a problem for home owners buying or selling their homes in Greater Vancouver. There are many home buyers who do not have good command of English. These buyers have no difficulties in finding their Realtors who are able to communicate and provide the required services to complete the real estate deals.
Real estate agents who are multi-lingual do have a communication edge over other realtors to cater to their own community. Most older homebuyers or sellers prefer to deal with realtors who speak their dialects.
The real estate market in metro Vancouver is changing fast. Home buyers can easily find out the most recent housing market information by contacting their Realtors.
By ebizniz on November 22, 2007 - 5:28pm
A collection of US housing market and mortgage news by Vancouver Home Mortgage:
Here are 2 interesting interviews aired on Bloomberg and CNBC.
1) Light At The End of The Tunnel Or The Brain of a Fly?
Nouriel Roubini and Thomas Lawler, of Lawler Economic join CNBC to discuss the latest state of the housing market and the outlook for the future. Roubini continues to emphasize the fact that, by all measures, we are only just begging a massive correction that will inevitably lead to a hard landing recession. Lawler, likes to joke about fly brains and homebuilders.
Originally aired on: 11/20/2007 on CNBC
Running Time: 5 minutes 2 seconds
2) Fannie and Freddie’s Penny Stocks
Jim Rogers of Beeland Interests Inc., joins Bloomberg to discuss the latest turmoil for Freddie Mac and Fannie Mae. Rogers suggests that the management of Fannie and Freddie don’t even know how bad their mortgage holdings are leading him to value their stocks at roughly $8 per share.
Originally aired on: 11/20/2007 on Bloomberg
Running Time: 7 minutes 26 seconds
By ebizniz on November 21, 2007 - 1:23pm
... there are many issues you need to consider. The most challenging task for anyone buying a Vancouver small business is to determine the "right" small business and "finding" the "listed or unlisted" businesses that are for sale. Searching for Vancouver small business listings to find the right business is not easy.
Buyer beware Unlike buying a home which is static and has attributes that are easy to understand, a small business is "dynamic" and there are many "pitfalls" and "unknown" issues that can cause you to loss money. The most serious problem can result in a buyer losing all his investment and possibly financial ruin. Here are some of the common problems faced by a small business buyer:
1) A buyer not knowing that the business is not suitable
2) Buyer has no business experience and fails to investigate the suitability and his ability to operate the business
3) Buyer has unrealistic expectations that he can improve the business he is buying
4) A Buyer failing to verify the accuracy of the information on the business provided to him
5) A Buyer failing to ensure he has a good lease in place that will not pose a problem when he wanted to sell his business
You can contact James Wong (604-721-4817) at at Re/Max Westcoast for a discussion on what you are looking for.
By ebizniz on November 10, 2007 - 2:06pm
There are 2 time periods of the year that are good for listing and selling your homes. Historically, early spring and mid-summer are the most active periods and best time for sellers listing their properties for sale. These time periods coincide with better weather conditions and home buyers planning to make a move before the new school term starts in September.
Conversely, Autumn being perceived as slower months with less buying and selling activities, may be the best time to buy a home. With lesser activities, some sellers may be more motivated and willing to compromise to make the deals work. So, if you are a homebuyer, you should seriously consider what you can buy. Your local realtor should be able to provide you a list of properties within your budget. Buying a home in Autumn is less stressful as you will have more time to carefully consider your selections.
If you like to have the Richmond or South Vancouver property listing information, kindly contact James Wong 604-721-4817 at Re/Max Westcoast.
By ebizniz on October 25, 2007 - 4:57pm
Home buyers can buy with 5% down payment if they are qualified for CMHC high ratio mortgages. If you are a first time home buyer, check out if you are qualified to withdraw your RRSP savings as down payment under the "home buyer's plan". In addition, find out if you are exempted from paying the British Columbia "property transfer tax".
When you are buying a home with less than 20% down payment, your mortgage is a high ratio mortgage. You are required to buy a home mortgage insurance to protect your mortgage lender against loan default. The insurance premium charged is dependent how much down payment is provided by you. The insurance premium may range from 1.00% to 2.75% of your mortgage amount.
Please refer to CMHC mortgage insurance premium table for details. If you plan to buy a home with 5% down payment and get a high ratio mortgage, check with your local mortgage broker whether you can be approved for mortgage financing. The 5% down payment can come from different sources such as lender’s cash back incentives, lines of credit/credit cards, arm's length personal loans or gifted down payment.
If you like to have more information on buying a home with 5% down payment, please contact James Wong at Vancouver Home Mortgage.
By ebizniz on October 21, 2007 - 11:40am
A decade of capital appreciation in the residential market has convinced many middle-aged consumers to make real estate investing not just about the home they are living in, but about a second property. Some housing experts have suggested as much as 25% of the condominiums in Toronto and Vancouver are owned by investors.
A Statistics Canada survey shows real estate investing has been on the upswing over the past six years. The housing market has been good, so there are a lot of people buying second homes now. These second homes include investment properties for rental and recreational properties which buyers can use for a few weeks, and for the rest of the year professionally managed in a rental pool.
Financing second properties by the banks can be difficult. But if you have plenty of equity in your main residence, it is easy to use that cash for second property investment. If you like to find out more information on second property investment, you should do your research and talk to a few experienced Realtors to discuss your plan.
By ebizniz on October 14, 2007 - 11:12am
A posting by James Wong at RE/MAX Westcoast.
According to the Greater Vancouver Real Estate Board's August 2007 report on house prices and sale activities, the demand for housing continue to be positive. The average sale prices for apartments, townhouses and detached homes are:
Apartments: $367,944
Townhouses: $446,577
Detach homes: $726,067
With the average Greater Vancouver household income at $63,300, home buyers are squeezed out of the home ownership market. Or, they are forced to buy the most affordable apartments as shelters for their families.
While Vancouver house prices are consistent with pricing trends for the above types of dwelling, there is a market disconnect with "affordability" and "average prices" in other major Canadian Cities. If you take a look at the various charts as presented by Brian Ripley here, you'll find that Vancouver home owners are bearing a much heavier cost in home ownership.
Our average detached home prices are twice as much as that in Calgary and Edmonton and Toronto detached home prices are only around 40% of that in Vancouver. Ottawa and Montreal prices are at about one-third the price in Vancouver, have the most affordable detached homes in the country.
