July 31, 2019 – If you live in Canada and especially in Vancouver or Surrey, British Columbia, you already know that real estate keeps on appreciating. But now and then there are windows of opportunity for buyers. One such window is right now in the year 2019. It is expected that the real estate prices will keep on declining until late 2020. That provides a great opportunity for first time home buyers and for investors. The real estate listings for sale are rising and there is a whole lot of inventory to choose from and negotiate a good deal. The next hot areas for real estate appreciation BC are Chilliwack, Abbotsford and Mission.
There are a whole lot of reasons for the declining values of real estate in 2019. One such reason is the stress test. A stress test means that the bank has to qualify a buyer at two percentage points over the actual interest rate or at the Bank of Canada’s Benchmark rate whichever is higher. The Bank of Canada’s Benchmark rate today is 5.19%.
Consequently, stress test takes lots of buyers out of the market. If the buyers can’t qualify, they can’t buy. If there are no buyers that means there is no demand for real estate. When there is more supply and less demand the values go down.
The bottom line is that from now till the end of 2020, it is a buyers’ market. You may be ready to buy but are you prepared to buy? Most people just wake up one morning and decide to buy and then get disappointed when they are not approved for the mortgage. Preparation the key to success.
So, if you are serious about buying your first or your dream home, the first thing you should do is to talk to a mortgage specialist. Let the mortgage specialist look at your financial and credit situation and make suggestions for you to take steps to improve your situation, should that be needed. Don’t be in a rush, especially in a declining market.
The good news is that you can buy your dream house regardless of your credit and income situation.
If you have qualifying income, good credit and meet all other conditions, you can buy with as little as 5% down. An experienced private mortgage broker can qualify you in minutes.
If you have some credit issues and also have high debt ratios but less than 50%, you can probably get a mortgage from an Alternative lender or a ‘B’ Bank. The rate is slightly higher and the mortgage is generally from 1 to 3 years. Alternative lending is a good option. It gives you enough time to improve your credit score and hopefully debt ratios and qualify for a bank mortgage within a year or two.
If your credit is bad and at the same time, maybe because you are self-employed, you cannot verify your income, then the best option is to go for a Private Mortgage. Find a mortgage broker that specializes in private mortgages and has a large network of private investors. He can get you a private mortgage at a decent rate. A word of caution, when getting a private mortgage, don’t just look at the rate and the fees, look at the terms as some of the private mortgages have harsh terms. Talk to a few private mortgage brokers and ask about the terms and read the commitment or approval letter and mortgage agreement carefully. You can always find a private mortgage that has reasonable terms and conditions. It is all up to you.
Good luck to you and may you find and qualify for your dream home.
Company Name: Crown Funding
Contact Person: Jeet Singh
Email: Send Email
Phone: (778) 320-9494
Address:3354 E 27th Ave