Update
It’s been a while since I’ve been on here, though I plan to be more consistent with my blog in the future!
I joined Smartymortgage Inc. (a Dominion Lending Centres franchise) a few months back and enjoy working out of our downtown Vancouver office location. I have also launched another a website, www.yaletownmortgage.com – check it out!
There has been a lot of changes in the mortgage industry this past year. Many sub prime lenders have stopped doing business in Canada. In October, new rules the government has put forth will affect the type of mortgages available. 40 year/100 percent mortgages (zero down) will be no longer in Canada. The maximum amortization will be 35 years and 95% loan to value (5% down).
The Vancouver market has slowed somewhat and unit sales have decreased. Prices have only moderately been affected at this point. People keep asking me whether now is the time to buy.. the million dollar question. Interest rates are probably on the rise so even if house prices come down marginally the total cost of your mortgage will likely remain the same IMO. The other popular question is whether to go fixed or variable. I am a fan of variable as it’s a great way to save money now and you can lock into a fixed rate at a later date. As of today, I can secure a variable rate of 4.15%, vs. fixed at 5.34.
Please contact me anytime if you’d like to discuss setting up a mortgage – thanks.
Changes to Mortgage Industry
Please note that as of Oct.13/08 100% mortgages (no down payment) and 40 year ammortized mortgages will not be offered in Canada. Instead, the maximum loan to value (LTV) will be 95% (5% down payment) and a maximum 35 year ammortization will be available. This change is not major but will affect those without a down payment. If you are looking to get into this type of mortgage I would recommend doing so ASAP.
In other news.. mortgage interest rates have been staying low and home unit sales in Vancouver have dropped significantly. There are some deals to be had for home buyers with increased real estate inventory in the lower mainland. Rates are expected to rise marginally over the next year or two to help ease inflation.
Mortgage lines of credit have become more popular in recent years. If you have equity in your home and looking to refinance, a line of credit mortgage will offer the most flexibility. Get a credit line of up to 80% of your home’s value (w/ no insurance fees) and use the equity to pay off other debts or to buy other property. Please contact me to for more details on how these mortgages can be set up.
Have a great August and enjoy the rest of the Summer!
Introduction
Hi, my name is Michael Sjerven and I am a Mortgage Broker working with Dominion Lending Centres Smartymortgage in Vancouver, BC. I have a background in sales and lending, and look forward to building new client relationships throughout BC and Canada. My main website is www.yaletownmortgage.com and phone number is 778.861.3336. I can also be reached by email at msjerven@dominionlending.ca. Please feel free to contact me anytime to discuss getting a mortgage.
I plan to post updates to this blog every month at minimum. My goal is to keep you up to date on the mortgage trends and rates in Canada. Hopefully this information will help keep you informed and ready for your next mortgage.
