Carol Palfrey Associate Broker " The Eastside is my Neighbourhood "

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Cell:1 (604) 818-7422
Office :1 (604) 263-1911
Mailing Address:
4387 Main Street
Vancouver, BC
V5V 3R1 Canada

ARE YOU PLANNING TO BUY A HOUSE OVER $500K?

 

If so, you need to be aware that the down payment rules are changing as of February 15th, 2016. The most recent change to the mortgage rules requires people to put a larger down payment on property priced between $500,000 and $999,999.  Purchases over $1M require at least 20% down with most lenders requiring even larger down payments for purchase prices over $1.25M.

 

In Canada, all loans with less than 20% down payment require mortgage Insurance. By changing the guidelines for insured mortgages, the effect encompasses all lenders.

For purchases of $500,000 or below, a 5% down payment is still possible.  For purchases over $500,000, the down payment requirement gradually increases as 10% is required for the portion over $500,000.  For example, a $550,000 purchase will require $25,000 for the first $500,000 and $5,000 for the remaining $50,000. This is $5,000 more than previously required.

 

The old policies will remain in effect for files approved prior to February.. As most lenders hold rates for between 90 and 120 days, the actual completion date can extend to June.    

 

In our opinion, the silver lining here is that the government appears to feel they are not in a position to increase rates enough to slow down the market. For existing and new borrowers, this hints to continued low interest rates.

 

Here are a few examples of the new down payment requirements:

 

$500,000 ............ $25,000 ............... 5.00%

$550,000 ............ $30,000 ............... 5.45%

$600,000 ............ $35,000 ............... 5.83%

$650,000 ............ $40,000 ............... 6.15%

$700,000 ............ $45,000 ............... 6.43%

$750,000 ............ $50,000 ............... 6.67%

$800,000 ............ $55,000 ............... 6.88%

$850,000 ............ $60,000 ............... 7.06%

$900,000 ............ $65,000 ............... 7.23%

$950,000 ............ $70,000 ............... 7.37%

$999,999 ............ $74,999 ............... 7.50%

 

 

 

If you are fortunate enough to own a home in East Vancouver you may want to consider selling this year!

 

There is a shortfall of homes for sale in East Vancouver and this shortfall is adding to the simple economics of supply and demand. 

 

The last few sales this year in the Commercial Drive area have shown that sale prices are from $1,133,000 to $1,718,000.  

 

Time will tell if prices continue to escalate.... 

 

For property owners this is all very good news, for buyers it is frustrating to bid on houses and not have the result of a purchase. 

 

I wish you well in your endeavours, and as always if you need assistance in Buying or Selling on the East side of Vancouver, feel free to contact me. 

 

 

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THE CRAZY WORLD OF REAL ESTATE AND THE CRAZY PEOPLE WHO OVERBID

 

Recently a property was listed in the Commercial Drive area at 1735 E 3rd list price was $1,588,000.

This property had 4 bedrooms upstairs and a 2 bedroom legal suite.

This house was completely re built in 2012 to enhance the character, update plumbing,

electrical and replace windows.

The property sold for $1,540,000.

Here where the Crazy part of the story begins….

1737 E 2nd was listed in the Commercial Drive area for $1,499,000. This home had

1 bedroom upstairs 1bedroom on the main floor and two bedroom basement suite.

This also was a remodelled Character home.

There were 4 offers and the sale price was $1,718,000. ( No that is not a typo)

I am not sure who the Buyers were, but I can tell you that no bank would appraise the property

at this value, which means the buyers have very deep pockets and most probably are from the

“West side”.I don’t believe this is a sign of what houses will be worth this year in the

Grandview Commercial Drive area.I do believe that it will be a competitive market and if you need

some sound real estate advice, I am happy to answer your questions.

 

Carol Palfrey

Associate Broker

Macdonald Realty

604 818 7422

carol@macrealty.com

www.eastvanlistings.com

Post CommentComments: 0Read Full Story
I have sold a property at 5906 Main ST in Vancouver.
Brand new home on Main Street.
Read Full Story
I have sold a property at 2045 5th AVE in Vancouver.
Fantastic half duplex in the best area of commercial drive. 1195 sq ft.
Read Full Story
I have sold a property at 2045 5th AVE in Vancouver.
Fantastic half duplex in the best area of Commercial Drive.
Read Full Story
I have sold a property at 2045 5th AVE E in Vancouver.
Fantastic half duplex in the best area of Commercial Drive.
Read Full Story
I have sold a property at 2045 5th AVE in Vancouver.
Fantastic half duplex in the best area of Commercial Drive
Read Full Story
I have sold a property at 2045 5th AVE E in Vanouver.
Fantastic half duplex in the best part of Commercial Drive.
Read Full Story
I have listed a new property at 303 15322 101ST AVE in Surrey.
In the heart of Guildford! Walk to all the amenities in your neighbourhood. This rainscreened condo building features two bedrooms and a den and two full bathrooms, open concept with bedrooms on opposite sides. The master bedroom is veryspacious & with a walk in closet. All the bells and whistles in this condo & granite counters and stainless appliances. There is a fabulous clubhouse with a fitness centre, boardroom and lounge with billiards. Small pets & rentals allowed.
Read Full Story
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