Mortgage Helpline
Jerry Brar Mortgages, Invis Inc. Unit 206 32625 South Fraser Way V2T 1X8 Surrey, BC, Canada

Congratulations to my buyer for buying this great house in mission for $810,000. 2008 built. 3000 square feet. For mortgage or real estate needs please cont...act: Vick Singh M.Sc. Actuarial Economics (UK) M.Sc. Math Ex- Actuarial Consultant (UK) Realtor - oneflatfee.ca Mortgage Specialist - Jerry Brar Mortgages T: 604 768 6199

https://www.bcrea.bc.ca/lega/suing-for-unpaid-deposits-527/

Will Prices of real estate go down? Majority of people are saying property prices will go down. This is based on heuristics bias. Heuristics are simple strategies or mental processes that humans use to quickly form judgments, make decisions, and find solutions to complex problems without applying any logic or using data analysis. The logic when applied should breakdown the question about prices in two parts:... Which property prices will go down? - detached homes, townhomes, apartments? Where property prices will go down? - Vancouver, Surrey or East of Abbotsford? Before we answer this we need to know what decide property prices? Demand - Which is high with majority of properties that are priced right and below $1 million can easily get more than one offers in Surrey and Abbotsford. Supply - With the limited land supply the demand/supply equilibrium suffers and will continue to do so until government rewrites the land law. Demography - Who are the buyers in different regions? - for example Abbotsford and Surrey attracts both investors/self-employed and labour market buyers. Looking at the questions now: Whilst Vancouver properties are out of reach of buyers that is not the case for townhomes or single detached properties in Lower mainland. High-end properties that cost $3 million plus may take a hit in Vancouver but not in other areas in my opinion due to the demography of buyers in these areas. The demand pressure from increased immigration and low supply of houses give sellers lot of power to price their home. Surprise yourself by looking at the sale data for abbotsford for 2017 and 2020 and you will find how listing prices and sale prices have gone higher. Banking structure - Canadian banks are well equipped with their lending structures compared to US/Europe and have proven time and again that they are reactive to keep their lending secure. They have not reacted to the current Covid crisis thus giving their silent nod to the current market prices. What goes against the real estate prices overall is the expected mortgage default that is expected. If the house to buyer ratio is 1 to 5 right now and with expected 20% of houses coming to market due to mortgage default (will this happen) i.e. 5 extra houses coming to market, the ratio of demand/supply may get to 1-1 bringing stability to the prices but even in that case it will not bring the prices down. The heuristics bias is an amazing way to understand how we stick to the example that easily comes to our mind in this case: Economic crisis = Housing market crash This is my personal analysis and opinion and should not be rely on for making any sell/buy decisions.

No NEED TO PANIC OVER NEE MORTGAGE RULES No one has a crystal ball to see what the next few months or years will bring, but it’s likely that some Canadians will have trouble with their debt in the wake of COVID. With that possibility in mind, the Canada Mortgage and Housing Corporation (CMHC) recently announced that it is tightening the rules for Canadian homebuyers looking for insured mortgages. Homebuyers with less than 20% downpayment require mortgage default insurance...: an important protection for Canadian lenders. Alternative options available This is a great time to work with a mortgage broker! I work with dozens of lenders and private mortgage insurers Genworth Canada and Canada Guaranty that are an alternative to CMHC. Neither have announced new underwriting guidelines, which means I expect to be guiding many new homebuyers through these alternate insurance channels. This is great news and why there is no need to panic. Summary of the new CMHC rules (effective July 1): 1. Reduced buying power. Previously, CMHC allowed 44% of total income to service all your debt and up to 39% of total monthly income to service housing payments (principal, interest, taxes, heat, condo fees). They have now tightened this back to 42% of total income can now go to service all your debt, and 35% of total monthly income to service housing costs. This reduces a homebuyer’s purchasing power by anywhere from 9 to 11%. As an example, someone qualifying for a $500,000 home now, will see that decrease to approximately $445,000. 2. Higher minimum credit score. At least one applicant’s credit score must now be a minimum of 680, up from 600. Find out your own score free through Equifax or TransUnion. 3. Downpayment funds can no longer include most borrowed downpayment sources. Very few buyers used this option so this will have a minimal impact. Get in touch at any time Having trouble keeping up with all the changes lately? That’s why I’m here. My only focus is mortgages and I am always up to date on the changing mortgage marketplace. If you or someone you know is looking to buy, it’s important to get in touch early so we can put a solid plan in place. Or, if you have concerns about your current mortgage strategy, let’s talk, especially if you want to find out if you can renegotiate your mortgage to take advantage of today’s low rates, or refinance to consolidate troubling high-interest debt. BIKRAM SINGH Mortgage Consultant 604.768.6199 Invis Inc.

When you apply for a mortgage, you want to: - Get the best service; - Best rate and terms; - Low fees for private or Alternative lending;... - Assurance that mortgage will be approved. We offer all of these and: - We can tailor the mortgage to suit your present and future needs. - For first time home buyers we pay your legal and appraisal fees* as well! Click here for pre-approval: https://bit.ly/3dXh0Sj