Some Key Information for the First time Buyer's Loan Program

By now most of you will have heard that the British Columbia government is providing matching low interest loans to first time buyers. This is a remarkable opportunity for many that have been able to save but perhaps not have quite enough for a downpayment. Here are the details: 

To qualify, buyers must:

• Be buying their first home;
• Obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;  
• Have a combined gross household income not exceeding $150,000;
• Have saved a down payment amount at least equal to the loan amount;
• Be a Canadian citizen or permanent resident for at least five years; and
• Have lived in BC for at least the full year preceding their application.

Key facts:

• The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price. 

• The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).

• After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.

• Loans through the program are due after 25 years.

• The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.

While this program can be a boon to the right person, it's always good to exercise caution when taking on large amounts of debt.  As always, I'm happy to chat with you about how to make this new program work for you!  Call me at 604-885-4313.

Listening to the news these days one is led to believe that things are slowing down, but some perspective on the numbers locally shows very strong underlying demand. Despite a pace of sales which is about half of what we saw last year, two things stand out: First, despite a marginally increasing inventory, the sales vs. listings ratio continues to steadily climb towards a Seller's Market. This is resulting in steady price increases year over year with well over half our detached listings priced over $800,000. Second, with prices escalating as quickly as they are on detached homes, we have seen very strong demand for more affordable attached sales. In this case, we have 70% fewer listings than a year ago as well as less days on the market. This, too, has resulted in a robust Seller's market and prices rising rapidly in that sector as well.

From our RE/MAX Oceanview Office:

The April statistics show our Spring market is in full bloom. There were 67 detached homes sold this past month. That’s an increase of 13% over March and the second busiest April in 10 years. The Benchmark Price – that is, the price of an average home in an average area – rose another 2.8% last month to $532,300. This is due mainly to fewer listings, which are down 25% from last year. 

Apartments and townhome sales totaled 23. That’s the same number as April of 2016, but twice that of last month’s total. We anticipate more price increases as supply shortens in this sector. With land, sales increased to 21 from just 13 in March. That’s up 66%, but still well below the 60 sales noted in April of last year. It is safe to say that prices in this category are rising, too, as the supply lessens.

As to where prices are going, we can only assume that as long as there is large price gap between the Coast and Vancouver, and local demand continues to be strong, values will increase. 

One thing we can state with certainty: if you’ve been thinking about selling, there has never been a better time to bring property onto the market.

Want to stay informed? Be sure to stay in touch with your RE/MAX Oceanview Agent and be sure to read the Weekly Report.