Tsawwassen Real Estate Tips

Mortgage tips from Canada's mortgage mavericks at BMO

2012-01-19T09:53:00.000-08:00

BMO announced 2.99% promotional mortgage in January.

This month BMO announced the lowest 5-year fixed rate ever for a Canadian bank at 2.99%. It comes as a two-week promotion, but some say the "restrictions" imposed can potentially outweigh the benefits of the cheap rate.

The editors at Canadian Mortgage Trends (CMT) posted a caution for eager home-owners considering taking advantage of the mortgage deal. "Once you close, you cannot discharge this mortgage for five years unless due to a bona fide sale of the property," CMT wrote. "Although, BMO does allow you to renew early, refinance to another BMO mortgage, or transfer your mortgage to a new property."

Regardless of the ins and outs of the promotion (talk to your favourite mortgage broker, we recommend Angela Wilton and Scott Dawson), the Montreal-based bankers put their heads together and came up with the following tips to help Canadians reduce mortgage debt and become mortgage free faster:

Consider a shorter amortization:

The shorter the life of the mortgage, the less you pay in interest.
Choosing a 25-year amortization can help you become mortgage-free faster and ultimately put more savings towards long term goals, such as retirement.

Make sure you can afford your home, both now and in the future:

Stress test your financial budget using a mortgage payment based on a higher interest rate. If your rate rises even 1 percentage point from 5 per cent to 6 per cent, you will need an additional $146 per month on a $250,000 mortgage amortized over 25 years.
Total housing costs (mortgage payments, property taxes, heating costs, etc.) should not consume more than one-third of household income.

Think about the future:

View your home as an investment. Consider its location and accessibility, and whether or not renovations may be required down the road.
Pay down short term debt before taking on a major financial commitment such as buying your first home or upgrading to a larger home.

Make a larger down payment:

If you can provide a bigger down payment, it's a significant way of helping you pay less interest over the life of your mortgage.
With a down payment of at least 20 per cent, you avoid paying mortgage default insurance.

Make pre-payments when you can:

Pay accelerated weekly or bi-weekly instead of monthly.
Increase your mortgage payment (principal and interest).

Think carefully about fixed vs. variable:

While variable rate mortgages have been a winning strategy over the long term, fixed rate mortgages (currently at historic lows) provide the peace of mind of insulating you against rate increases and the certainty of knowing how much of your mortgage you will have paid down at the end of your term.

If you'd like to take advantage of these low interest rates and get in the Tsawwassen, Ladner, White Rock, Surrey or Vancouver housing market or make a switch from your current home or condo, contact Gene or Bill Watt by visiting www.genewatt.com or calling 778 668-7253.

2012 is close, let the market speculation begin!

2011-11-22T16:21:00.001-08:00

As we get closer to the end of 2011, lots of speculation will begin around what 2012’s real estate market will look like. According to the British Columbia Real Estate Association (BCREA), recent forecasts point to a stable market in 2012: a small increase in sales and a small decrease in average home price.

“Low mortgage interest rates are expected to persist through 2012 keeping affordability on an even keel,” said Cameron Muir, BCREA Chief Economist. “Moderate consumer demand combined with larger inventories of homes for sale means BC housing markets will experience little upward pressure on home prices through 2012.”

The BC Multiple Listing Service (MLS®) forecasts that residential sales across the province will rise 3.9 per cent over the next year from 77,000 units to 80,000 units. However, the average price of homes across the province is expected to decline 2.5 per cent to $550,500 in 2012.

For more information about the BCREA’s forecast, click here. If you’re thinking about buying or selling in the Greater Vancouver Area, contact Gene or Bill Watt.

Five reasons to buy your first home or condo!

2011-11-03T12:05:00.000-07:00

I came across a very interesting article this morning in the Realty Times, a publication out of Dallas, Texas, giving five short reasons about the benefits of homeownership. The old saying goes that there’s never a “perfect” time to become a first-time homeowner, but Carla Hill’s five reasons may persuade you to take the plunge.

Click http://realtytimes.com/rtpages/20111102_great.htm to read the article. Keep in mind facts and figures are based on the U.S. market and economy.

If you’re thinking about buying a home in the Greater Vancouver Area in particular Tsawwassen, Ladner, White Rock or Surrey contact the Gene and Bill Watt real estate team.

Leaves are dropping, but the chances of selling your home might not

2011-10-20T16:34:00.000-07:00

As the leaves begin to fall, there’s a perception that housing market falls too. To this we say, yes and no.

With students back in school and people getting back to their routines after summer vacations, there can be a dip in real estate buying and selling activity. However, the fall can be the best time to list your home.

Keep in mind the right buyer can pop up at any time because of the unpredictable nature of people’s housing needs (unexpected moves because of the job market, changes in family situation or need to downsize). So, there’s no “bad” time to list your home.

A slower market doesn’t mean it’s completely dead. There are always buyers looking and with less homes on the market, your chances of attracting an offer from a motivated buyer is much greater than when the market is flooded with options. Also this year, more and more people are getting into the market as first-time buyers or buying second homes as investments to take advantage of low interest rates.

If you choose to list your home through the fall season, it's even more important to keep your property looking neat and clean. Take the extra effort to rake leaves, cut back plants and remove flowers that are past their summer-time prime. Also, the fall means a lot of naked trees in your yard and your house will be more exposed. It might be a good time to paint your trim and give your home a nice, refreshed look.

If you have questions about the real estate market or are considering selling your home, contact realtors Gene and Bill. We specialize in the South Surrey, North Delta, Vancouver, Tsawwassen, White Rock, Clayton and Ladner areas.

Real Estate Smart Tip! Invest in a rancher.

2011-09-09T12:27:00.000-07:00

Ranchers are becoming highly sought after.

Ranchers are generally defined as sprawling homes with only one floor. These types of homes are particularly attractive to people with mobility issues who prefer not to (or can’t) walk up and down many flights of stairs.

As the baby-boomers look to downsize and find properties that fit their lifestyles, ranchers will become highly sought after. Right now, there is a limited number ranchers and that’s not likely to change. Ranchers take up a lot of space and have longer roof lines than split-level houses. With a shortage of land in the Tsawwassen and Ladner areas, it will be difficult and expensive for home buyers to build these homes to suit.

If you’re currently looking to purchase a home, consider a rancher for its long-term potential. When the large baby-boomer group downsizes, there will be a surplus of large two- and three-storey homes on the market and guess what they’ll be looking for … Homes just like yours!

For more information about making a smart move in Tsawwassen, Ladner or other parts of the Lower Mainland call Gene (778 668-7253) or Bill Watt (604 306-1561). Visit http://www.genewatt.com/ for up-to-date listing information.