With housing transactions and mortgage volumes significantly down in Vancouver you might be wondering what is going on in this country. Are lenders still giving out money? Simply put, yes! However, lending requirements have gotten tighter over the past few months. Banks want to ensure clients have enough income to debt service the mortgage properly. Self-employed income needs to be verified now more than before. Why have lenders tightened up? Because, costs of funds have been driven up and fears of the US subprime mortgage mess has moved north of the border.
The bottom line is that there is no perfect time to buy a house or get a mortgage. If you are able to find a home you love and afford and sustain a mortgage payment then why not do it. Vancouver is now a buyers market and deals can be had for agressive shoppers. Interest rates are still very low with 5 year fixed rates starting at 5.50%. If you'd like to start searching for a place to buy give me a call and I will put you in touch with a good realtor.
Refinancing your existing mortgage is a very popular option if you are looking to pull equity out of your home. People usually decide to refi for one of two reasons: 1. They'd like to use equity on a down payment towards a new property. 2. They'd like to consolidate debt and have one low monthly payment. Of course the best option is to be mortgage free but that is just not the reality for many Canadians. As well, some banks will lend up to 95% of the value of your home.
Until next time.. Happy November!