CMHC hikes mortgage insurance premiums

Yesterday we all anxiously waited for the “big” announcement Canada’s national housing agency had for us, and how it was going to effect you getting a mortgage in The Great White North. There were many speculations of what they were going to do. Of all the options they could have exercised, this one in my opinion is the least detrimental. CMHC has increased the amount of money that homeowners with less than 20 per cent down payments must pay to insure their mortgages. Starting in May, the housing agency will charge an average of about 15 per cent more to insure mortgages, CMHC said in a release Friday. Prior to the announcement, the premiums ranged between 0.5 per cent and 2.75 per cent. Under the new rules, they will range from 0.6 per cent to 3.15 per cent. The changes are unlikely to have a major impact on the housing market, but in real-dollar terms, the move makes it incrementally more expensive to buy a home. A heavily leveraged buyer — someone with only five per cent down, and therefore borrowing 95 per cent of the home’s value — would be most impacted by the hike, but even then not in a significant way. Under the old system, that borrower would pay an insurance premium of $6,875 to get a $250,000 mortgage. Under the new system, their premium would jump by $1,000 to $7,875. On a typical 25-year mortgage at 3.5 per cent, that person would be paying about $5 more on their mortgage payment, every month, to pay down the fee. Thanks to Pete Evans of CBC News for the prompt and informative update on how CMHC’s announcement effects people in Canada getting a mortgage.

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Buyers are liars

Before you call or e-mail me with your hate mail, hear me out. Typically the first time I meet with potential buyers we sit down and go through a series of questions to get a general idea of what they expect. What I’m looking for at this point, are what I call the non-negotiable items. I ask questions like; How many bedroom/bathrooms do you need? What’s your budget? What area are you wanting to be in? Do you want to be in a house, townhouse condo etc.? Quite often I’ll hear things like, “The house needs to be at least 2000 sq ft”. Or, “ We only want to look at ranchers”.   Part of my job is to give the buyer all their options. That includes the ones they don’t know they have or even want yet. So when I show property I purposely go outside their non-negotiable criteria. At no fault of the buyer, the majority of the time the property they purchase doesn’t contain all the items they thought were non-negotiable. At times, what they buy will be completely different than what they said they wanted. Whether it was because they over or under compensated what they could get for their money, didn’t realize what they wanted till it was in front of them or most commonly they were willing to sacrifice one thing for another.   Whether you’re a first time home buyer or a seasoned veteran in the art of home purchasing, my advice to you is to keep an open mind. Sometimes you don’t know what your looking for till you walk in the front door. Having tunnel vision can cause you to miss out on an amazing property you may have not even known you wanted. Have an open mind and trust that your Realtor will lead you in the right direction.

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WELCOME!

Welcome and thanks for visiting the newest in Chilliwack Real Estate websites. This site will be updated daily with everything from hot new listings, market news and relevant, useful articles. It has been designed as a one stop shop of information for people looking to buy or sell Real Estate in the Chilliwack area. This simple, yet detailed site is an easy, user friendly way to navigate through all things Real Estate in Chilliwack. There are plenty of property search options, from a detailed in depth search down to a quick address search. You have full access to all the listings of all the local offices like, Landmark Realty Chilliwack, RE/MAX Nyda Realty, Royal Lepage Wheeler Cheam Realty, Sutton Group- Showplace Realty Ltd, Homelife Glenayre Realty Ltd and all other offices of the surrounding areas. This site also has lots to offer if you are looking to buy or looking to sell here in the Chilliwack area. Buyer, make sure you take advantage of my VIP Buyers Program. It’s a sure way to be first to know about brand new listings that just hit the market. New to the area?…. there’s information on every sub area of this beautiful city to help familiarize yourself with Chilliwack. You’ll find everything you need under the “Communities” section. If you have any questions, please don’t hesitate to contact me. Nick Van

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