October, 2016 RSS Icon
Found 2 entries for October, 2016.

On October 3, 2016 Canadian Finance Minister Bill Morneau announced changes to Canadian mortgage laws that are designed to protect borrowers from taking on mortgages they can not afford.

Essentially, the new law requires that all insured mortgages in Canada must undergo a “stress test” that will ensure borrowers can continue making mortgage payments if interest rates increase. This stress test will check if borrowers can continue making mortgage payments if actual rates were to increase to the big bank’s five-year posted mortgage rate, which is currently 4.64%.

In the example provided by CBC.ca a buyer with an annual income of $100,000 and $40,000 down payment could qualify for a mortgage of $665,435 with a mortgage rate of 2.17%. Under the new

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Fraser Valley Inventory Peaks and Sales Settle for Fall

For a full September 2016 real estate update, please view the FVREB September 2016 News Release.

The once hot real estate market in the Fraser Valley has finally begun to ease off, dropping below 10-year sales averages. While many feel that this has occurred as a direct result of the foreign-buyer tax, others have suggested that the market was getting out of hand.

“What we’re experiencing is an environment where the summer sizzle has ceased, and demand is producing numbers in-line with what we’ve seen historically.”

(Charles Wiebe, President of Fraser Valley Real Estate Board.)

Even though sales have slowed down, real estate prices still remain significantly higher than last year,

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