According to a recent survey sponsored by mortgage insurer Genworth Financial Canada, homeowners are in the best shape when it comes to financial fitness in Canada.

Sixty-five percent of homeowners pay off their credit card balances each month (versus 48% of non-homeowners). Furthermore, a quarter of those homeowners with mortgages have managed to make a lump-sum payment or accelerate their mortgage payments in the past year.

Nearly half (44%) of homeowners were able to pay all of their bills and save some money in the past year, suggesting a strong correlation between homeownership and financial fitness.

The Financial Fitness survey was conducted in conjunction with the Canadian Association of Credit Counselling Services. Compared to the same survey undertaken in 2007 when the economy was booming, Canadians are even more likely now to say their financial fitness is good (55% versus 50%).

Other key survey findings show:

• Mortgage holders more likely to have accelerated or made a lump-sum payment include those with incomes $75-$99k (32%) or $100k+ (30%), and women more than men (26% versus 21%).
• 49% of homeowners made down payments of 20% or more on their purchase
• 13% of homeowners say they are in great financial shape
• 12% of homeowners say they have requested a credit report within the past 12 months
• 59% of Canadians say they pay their credit cards in full each month
• 39% of Canadians say that in the past year they were able to pay their bills and save some money. A further 41% were able to pay their bills but not save
• First-time buyers/those who intend to buy a home as well as those requiring mortgage insurance are more likely to have spoken to a financial planner/coach in the past 12 months

Click here for complete survey findings.

Chris Murphy
Dominion Lending Centres Kelowna
Phone: (250)717-5050
Cell: (250)717-7164
Fax: (250)-717-5288
Email: cmurphy@Dominionlending.ca
Website: http://www.chrismurphymortgages.ca/

Excerpt from “Home Financing Journal, August 2010” from Dominion Lending Centres

Selecting the mortgage term that is right for you can be a challenging proposition for even the savviest of homebuyers, as terms typically range from six months up to 10 years.

By understanding mortgage terms and what they mean in dollars and sense, you can save the most money and choose the term that is best suited to your specific needs.

The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate. And, a shorter term generally means a lower corresponding interest rate. While this generalization may lead you to believe that a shorter term is always the preferred option, this is not always the case. Sometimes there are other factors – either in the financial markets or in your own life – which you will also have to take into consideration when selecting the length of your mortgage term.

If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer mortgage term, such as five or 10 years, so that you can ensure that you will be able to afford your mortgage payments should interest rates increase.

By the end of a five- or 10-year mortgage term, most buyers are in a better financial situation, have a lower outstanding principal balance and, should interest rates have risen throughout the course of their term, will be able to afford higher mortgage payments.

If you are shopping for a mortgage for an investment property, you will likely want to consider choosing a longer mortgage term – depending, of course, on your overall plan. This will allow you to know that the mortgage payments on the property will be steady for a long time and enable you to more accurately project your future income from the property.

As well, if you know you will not be staying in the same home for the next five or 10 years, opting for a shorter term can save you significant fees when it comes to early payout penalties.

Choosing the right mortgage term is a unique decision for each individual. By understanding your personal financial situation and your tolerance for risk, I can assist you in choosing the mortgage term that will work best for your situation.

As always, if you have any questions about mortgage terms or your mortgage in general, I’m here to help!

Chris Murphy
Dominion Lending Centres Kelowna
Phone: (250)717-5050
Cell: (250)717-7164
Fax: (250)-717-5288
E-mail
Website

Excerpt from “Home Financing Journal, August 2010” from Dominion Lending Centres

One day its doom and gloom:
    The listing inventory is high
        The number of sales is down
           The interest rates are rising
                There are too many people unemployed

The following day, “The recession is over”
    The average home price is up
        The interest rates are near all-time lows
            The selection of properties is excellent
                The number of building permits (jobs) is up 

Who is right?

 When in doubt, Google it!

Google analytics measures the number and origin of the unique visits to our Office’s website.

The 18 months prior to May 2010 showed the visits to be about half of the traditional numbers and the origin to be mostly local. The sales during that period were less than normal and almost all local buyers. The sales were modestly priced homes $400,000 to $550,000 and condos $200,000 to $350,000…

Read entire newsletter…

Kelowna’s new home construction market, led by the detached home sector, began 2010 on a positive note. 
 
First quarter detached home starts more than doubled from the same three month period in 2009.
 
First quarter existing home sales were up from the same three month period in 2009, with detached and attached home and apartment condominium sales all posting big year-over-year gains.

Excerpt from News from the Central Okanagan Economic Development Commission – June 21, 2010. To read the entire newsletter click here.

The University of British Columbia’s Okanagan campus will soon double its land area, as the UBC Board of Governors today approved the $8.78-million purchase of 103.6 ha. (256 acres) of North Glenmore farmland from the City of Kelowna.

“This is an unprecedented and extremely important event in the history of UBC,” says Brad Bennett, Chair of the Board of Governors. “We’re grateful to the City of Kelowna for being such outstanding partners and for the opportunity to acquire this land. This ensures that UBC’s Okanagan campus can respond to the future needs of our region, our province and the country. The possibilities are limited only by vision and imagination.

“Endowment assets are a legacy held in perpetuity for the benefit of the university, to support the core mandate of UBC. Because of this, the Okanagan campus will be a direct beneficiary of the land, and of the future teaching, learning, research and recreational opportunities it will support.”

Read the rest of this entry »

Kelowna area housing starts increased to 77 homes in April from 29 homes in the same month a year ago, according to Canada Mortgage and Housing Corporation (CMHC).

Both detached home and multi-family starts have picked up from the unusually low levels of new home construction recorded in 2009.  “New home buyers are taking advantage of favorable interest rates and lower construction costs,” explained CMHC Market Analyst Paul Fabri.  “Kelowna’s multi-family construction sector has moved away from big apartment condominium projects.”

High inventories of new, completed and unoccupied units and strong price competition from a well supplied existing home sector have constrained apartment condominium construction this year.  “For now, builders have focused on smaller, phased attached housing projects and rental apartment construction,” Fabri added.

Excerpt from News from the Central Okanagan Economic Development Commission – May 17, 2010
To read the entire newsletter click here.

HARMONIZED SALES TAX… WHAT IS THIS ALL ABOUT?

ON NEW HOMES:

The BC Gov’t to harmonize our tax 7% + 5% = 12% July 01, 2010.

As a Realtor my biggest concern is the increased cost to the consumer in Real Estate sales. To off set the cost, the province is proposing to raise the threshold for the B.C. HST new homes rebate from $400,000 to $525,000.Homes purchased over $525,000 will have a maximum rebate of $26,250.00.

New home owners who take ownership or possession before July 01, 2010 will not apply HST only GST.

ON PROFESSIONAL SERVICES:

Professionals that serve the Real Estate Industry will have an increased tax of 7% as well. The Gov’t has been charging GST on all Real Estate services including commissions, home inspections and appraisals; they will now have to charge HST… read entire newsletter

Vancouver, BC – April 13, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 43 per cent to 7,110 units in March compared to the same month last year.

On a seasonally adjusted basis, MLS® residential unit sales in the province increased 6 per cent compared to February 2010. However, home sales in March were 20 per cent lower than December 2009 on a seasonally adjusted basis.

To read the full story: BC Home Sales Moderate in First Quarter

Excerpt from: BCREC eNewsletter – April 2nd Issue
©Source by British Columbia Real Estate Association Public Release

In its January, 2010 report, Canada Mortgage and Housing notes that sales of existing home rebounded sharply in the fourth quarter of 2009, more than doubling from the previous year.   Sales of detached home, townhouse and apartment condominium sales all recorded big increases. 

Kelowna’s existing home market has shifted to a balanced position from a buyer’s point of view.  Homes are still taking longer to sell than in 2008, but sellers are now achieving a higher sale price to list price ratio compared to just a few months ago.
Vew entire report

Excerpt from – News from the Central Okanagan Economic Development – February 15, 2010
View entire newsletter

The flurry of activity that we have seen in the Real Estate Market this summer and fall accounts of a few reasons:

Interest rates are still the lowest in decades

Prices have decreased 11% since last year but are starting to increase at a normal rate

Buyers who were sitting on the fence over the past 2 years and are now ready to commit to ownership have found their window of opportunity

All the above ingredients have combined to improve affordability markedly; plus the economic picture looks promising… read entire newsletter>>