Are you purchasing a new property after July 1, 2010? Here are some useful information in Adobe pdf format:
If you cannot read this pdf file, please go to Adobe to download for free at: Free Adobe Downloader
Do you have a mortgage question? Please feel free to contact me, Frank Lee at 604-649-3186 or e-mail me at lee.f@mortgagecentre.com. Happy Home Buying!
More than two weeks ago, when the 2010 Winter Olympics began I’m sure many people were astounded at just how beautiful Vancouver, British Columbia, Canada really is! From their television sets people were amazed at just how “natural” British Columbia can be so breathtakingly beautiful!
In fact, I’m sure that many people “googled” or “yahoo’d” to find out just where Vancouver really is. And of course, to those of us who live here, each day we appreciate why Vancouver is considered the crown jewel of the beautiful province of British Columbia, Canada.
With the majestic North Shore mountains – Grouse Mountain, Seymour Mountain, and of course, the now world-famous Cypress Mountain which is only 15 minutes away from Downtown Vancouver and where many of the downhill ski, and snowboarding events were held for the 2010 Winter Olympics and where the same events for the 2010 Winter Paralympic Games will be held in a week’s time, it’s easy to see why Vancouver is love at first sight for anyone visiting our city.
And it is no wonder that many would like to make Vancouver their home away from home. Where else can you go skiing in the morning, take your mountain bike through the trails in the afternoon, and unwind in the evening at any of the many restaurants and coffee shops which will tantalize your taste buds? All in the same day!
Whether you would like to make Vancouver a permanent home or spend part of the year here, Canadian banks and lending institutions have made it simple to own a property in Vancouver or anywhere in Canada for that matter.
For clients who are not citizens of Canada (non-residents and new immigrants), in most cases a minimum down payment of 35% of the purchase price is required. For example, if your purchase is $800,000, your minimum required down payment would be $280,000. This would mean that you will need a mortgage of $520,000. However, not all banks use this simple calculation, so e-mail me at lee.f@mortgagecentre.com so I can provide guidance on getting you pre-approved for a mortgage before you start looking for a property.
If you are a new immigrant, you will need to provide your immigration papers to prove when you first arrived in Canada (don’t lose this piece of paper – you will need it later when you turn 65 to claim your Canada pension). You will also need to show your “Maple Leaf” or the Permanent Resident card, and the original passport documents.
As a new immigrant or a non-resident you may not have had a chance to establish a credit history. Not to worry, all you need to provide to prove your good credit history is a banker’s reference letter from the country you used to live. That letter will provide the bank or lending institution an idea what kind of client you were with the bank or lending institution.
There are many choices of banks and lending institution to choose from when it comes to obtaining financing for your home purchase as a new immigrant or a non-resident. This is what I specialize in. I can arrange for home financing on your behalf easily and quickly – at no cost to you!
For more details about the non-resident or new immigrant mortgage, or if you would like contact me about how you can finance and own a real estate in Vancouver, please feel free to contact me at:
Frank Lee, 604-649-3186, or e-mail me at lee.f@mortgagecentre.com
….and Welcome to Vancouver!
During an interview with CTV News’ Question Period yesterday, Jim Flaherty, Canada’s Minister of Finance commented that he is watching the real estate market very closely and may be taking measures to cool off our housing market – not necessarily by raising interest rates but perhaps increasing the current 5% down payment requirement to a higher amount, and/or shortening the amortization period (the amount of time it takes to fully pay off the mortgage). Mr. Flaherty’s comment comes closely on the heels of the latest stats showing that housing markets across Canada but especially in major centres are continuing to be red hot. And he is worried about the inflationary effects this sector will have on the economy as a whole.
In principle I support Mr. Flaherty’s view point. Increasing the minimum down payment requirement may be a good thing because the higher the down payment is, the less likely borrowers will walk away from their home and put their mortgage in default status. And by shortening the amortization period from 35 to say 30 years, it will encourage Canadians to pay off their debts sooner. Both of these strategies are good – in principle.
The reality is that Canadians are looking for access to financing to purchase that first home instead of renting. That was why the National Housing Act and the Canada Mortgage and Housing Corporation Act were created in the first place – to allow Canadians access to financing that is affordable and without having to wait for years to come up with the 25% down payment as originally required under the Bank Act. Furthermore, by increasing the amortization period from 25 to 35 years, many more Canadian families are able to qualify for their first home. For example, on a $200,000 mortgage at 4.0%, the monthly payment is $881.60. At 25 years, the monthly payment is $1,052, an increase of $171 per month. For many families that extra $171 can go a long way. And in major centres such as Vancouver, where mortgages are significantly higher, having the amortization period at 35 years has allowed many to get into the housing market where previously they were unable.
Mr. Flaherty now has a balancing act to perform. On the one hand, as Minister of Finance he has to curb inflation in the real estate sector, and on the other hand he recognizes it is the real estate market that is fueling our economy. A healthy real estate market drives many other sectors of the economy. He knows that for each dollar that is spent, five dollars are generated in our economy. This is known as the multiplier effect. And for most people, the home will be their largest purchase – in the hundreds of thousands. So, my guess is that Mr. Flaherty may increase the down payment requirement by a couple of percent to 7% and reduce the maximum amortization period to 30 years from its current 35. Whatever he may or may not do remains to be seen. However, by commenting that he may make changes to the existing Canada Mortgage & Housing Corporation lending policies on national television, he may very well have spurred many potential home buyers to take the leap now to purchase a home before things change in the new year.
I welcome your comments.