Justin MacKinnon

Cell: 778-229-7444 |

 

 

The new guidline for uninsured mortgages come 2018 will have you stress tested for an additional 2%.  So, if you have 100,000$ down for a 500,000$ dollar home and you found a great rate at 2.90%, you will be tested for 4.90% for that 5-year mortgage.  Prepare yourselves for a tighter lending encironment.  Private lenders may see a rise in business as regulated financial institutions are adopting more strict lending procedures.  

 

Those that already own may not be safe either, come renewel time.  Almost all of the leverage falls into your existing lenders hands, and they’ll know you can’t leave. This could result in less mortgage competition, and higher borrowing rates than if you could just go to a competitor and get a better rate.  If you can't afford a new stress test, you'll end up paying more than those who can.

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The topic on everyone's minds is not going away.  Government is making moves to nip certain problems in the bud, but is any of it really helping?  Mayor Gregor Robertson has just rolled out a new plan to limit the marketing of new developments locally first and foremost before going...overseas for example.  So, if a new project starts in East Vancouver, for the first 30 days, marketing will be limited to East Vancouver.  Only after 90 days or so will it be allowed to be promoted overseas.  Is this good for Vancouverites?  Yes.  Is this good for affordability?  Not really.  

Same goes for motions made towards condo assignments or "shadow flipping" as the media calls it.  Coming down on sellers and agents who are taking advantage of the system is a good thing, but I feel that all the work local and federal government are doing to regain the trust of the public in regards to real estate is still not fixing the larger issue here.  

 

Empty home tax is a great deterrant for speculators who are not using our housing market for actual housing, but again, it feels to me like these minimal effort moves are just a dog and pony show for upcoming by-elections.  

I do see some moves as being beneficial to the overall problem, such as allowing more rental suites per lot.  Moves such as these will definitely allow home-buyers to attain more mortgage help.  It also opens up more rental inventory.  

I also see a lot more development happening these days, which should be lowering prices.  Yet I dont see prices dropping.  If supply is increasing to meet demand, shouldn't there be market corrections?  The detached single-family housing market is slowing, but the attached market is stronger than ever!  There are future plans for a lot more inventory coming down the pipes, so maybe a massive increase in inventory will eventually solve the problem, but I dont see these bandaid solutions helping any time soon.

 

https://www.straight.com/news/981731/vancouver-council-debate-putting-locals-ahead-foreign-buyers-lines-real-estate-pre-sales

 

https://beta.theglobeandmail.com/news/british-columbia/cra-investigation-seeks-information-to-identify-bc-condo-flippers/article36596875/?ref=http://www.theglobeandmail.com&

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Dual agency is when a real estate agent represents both the buyer and the seller in a transaction.  Ontario is currently considering a ban on the practice as part of its 16-point housing plan.  Through a spokesman, B.C.’s new superintendent of real estate, Michael Noseworthy, says he’s “very close” to publicly disclosing potential new rule changes on the practice.  


I have always had the opinion that an agent cannot get the best result for both sides.  How is your agent, as a buyer, getting you the lowest possible price if they are also representing the seller?  And Vice-versa, how can that same agent get the seller the highest price?  It seems impossible.  If both sides of the fence feel like there was too much compromise in the negotiations, there is only one clear winner, the agent who collects the full commission.  Some open houses I attend feature 2 agents, (1)the listing agent and (2)someone from their office.  This way, if a buyer without an agent shows up, agent #2 can help them write an offer with no conflict of interest.  I have always respected this practice.  


To some agents, this is their bread and butter, but it seems like they may have to evolve with the times.  If the selling agent is the only person who has found a buyer, theyre going to have to refer that buyer to another agent if legislation changes.  I, for one, feel like that would spread the love a little more evenly and create a more fair market.

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