Sutton Showplace Realty (2015) Chilliwack

  604-858-1800 

New Incentive for First Time Home Buyers

15 September 2019
Sutton Showplace Realty Chilliwack
The new First-Time Home Buyer Incentive is a 3 year program offered by the Federal Government as a "Shared Equity Mortgage", with the Federal Government being your partner.

The incentive allows eligible first-time home buyers, who have the minimum down payment for an insured mortgage, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada. Essentially, the incentive helps qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens.
  • Lower Monthly Mortgage Payments
  • Interest-free Incentive Program
  • No Pre-payment Penalty
  • Newly Constructed Homes eligible for 5% or 10%
  • Existing Homes eligible for 5%
This website help to determine your eligibility, calculate your maximum purchase price, and select the incentive that is right for you.
https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive
 
For mortgage advice, contact an experienced licensed mortgage specialist.

Buying Foreclosures: Keep These Tips in Mind

10 September 2019
Sutton Showplace Realty Chilliwack

Many buyers associate buying a foreclosure with getting a great deal on the purchase price, usually with a quick closing date. While this can be true, there are some important things to keep in mind.

The process for purchasing a home in foreclosure is different than a typical purchase. There must first be a firm unconditional contract agreed upon between a Buyer and the Seller. A court date will be set and the contract will be presented to a judge. At this time, other interested parties (who are now aware of the current purchase price) are welcome to attend court and present their best offer as well. The judge, at his/her discretion, then determines which offer to accept. All potential Buyers must have their deposit cheques ready, and be willing to commit to the purchase with zero conditions, and accepting the home and property "as-is, where-is".

The pros and cons differ depending on what stage of foreclosure the home is in. If you're aware of some of the pitfalls, it will help you to be more prepared during the purchase process. Hiring a Licensed Realtor, a Professional Home Inspector, and obtaining advise from a Legal Representative and Financial Lenders, are all important tasks to complete during this process.

A few things to be aware of:

  • If the Seller accepts your offer, you're not guaranteed to purchase the home because the contract will ultimately be, "Subject to Court Approval."
  • The Seller may not be able to negotiate a price that's lower than the outstanding balance of the seller’s mortgage(s).
  • It can be difficult to obtain a mortgage on a foreclosure; buying with all cash is a frequent occurrence. Make sure you have spoken with your lender prior to writing an offer. It's important to know your budget and to stay within in it, especially when there's an opportunity for other interested parties to present offers on the property as well. Discuss this with your Realtor and determine what your best offer will be so they can present it to the court on your behalf.
  • Foreclosures are sold "as-is, where-is", so it's not very likely that the Seller will complete any repairs prior to completion. Also, the Sellers /tenants may not leave the home in great condition, so be prepared to hire cleaners and potentially purchase new appliances, etc.
  • Keep in mind that being foreclosed on is a devastating and stressful time for the sellers, and they may still be living in the home during the process. Be respectful when viewing the home, and save your conversations for when they're not in your presence.
  • When the Seller is the Bank, they cannot provide disclosures as to property history/condition issues. It's very important to have the property inspected prior to committing to the purchase. Read the Home Inspectors report and have funds set aside to renovate or remediate any signs of mould, electrical issues, etc.

While the process of purchasing a foreclosure may seem daunting, consider hiring a Licensed Realtor to represent you and take some of that stress off your shoulders. They will walk you through the process and represent you with your best interests in mind. If a Seller is motivated to achieve a quick sale, that may also result in purchasing the home for below market value. Who doesn't want a great deal!

If you'd like to speak with one of our experienced Sutton Agents, please contact our office and we'll be pleased to introduce you. 604-858-1800


Mortgage stress test rules get more lenient for first time since B-20 intro

22 July 2019
Sutton Showplace Realty Chilliwack

For the first time since the government implemented new stress test rules on Canadian home loans, the bar has been lowered — meaning a would-be home buyer could be approved for a bigger mortgage today than they would have yesterday.

The so-called stress test, formally in place since January 2018, is a financial bar that any Canadian looking to take out a mortgage must pass to be approved for one. Regardless of what deals they may have been offered by a lender in the real world, for regulators to sign off on the loan, the borrower's finances must be tested as though their mortgage rate is at a higher level. The idea is to save borrowers from biting off more debt than they can chew and ensure they have some financial wiggle room if rates rise.

The stress-test level is set at either two percentage points above the actual mortgage rate or whatever the average five-year posted rate is at Canada's big banks, as calculated by the Bank of Canada — whichever is higher.

That bank rate hasn't changed since May 2018, when it rose to 5.34 per cent. But this week, it inched down to 5.19 per cent, the first time it has decreased in almost three years.

Read the remainder of the article here: https://www.cbc.ca/news/business/mortgages-stress-test-rate-1.5217790?fbclid=IwAR1g7QxS0_fbc1Di8uApI2svDCLrPheC25Xeli9N2PpOXwOPNGA2JyxXaUY


OPEN HOUSES

12 July 2019
Sutton Showplace Realty Chilliwack

We advertise our list of OPEN HOUSES every week on our Facebook Page.

Check it out to see what lovely homes our agents will have available to view.


Happy Canada Day!

01 July 2019
Sutton Showplace Realty Chilliwack


Is the First-Time Home Buyer Incentive a good deal for Home Buyers?

25 June 2019
Sutton Showplace Realty Chilliwack

The details of Ottawa‘s new First-Time Home Buyer Incentive (FTHBI) are finally out, and the question for any Canadian struggling to afford their first home is: is it a good deal?

Under the program, which was first announced in the federal budget in March, the government is offering an interest-free loan to help homebuyers take out a smaller mortgage and keep monthly repayments lower. New information released on Monday clarified that, when the loan is repaid, the government will also get a share of any gains from the appreciation of the property.

Vice versa, if the value of the home has dropped, Ottawa will shoulder a percentage of the loss.

The measure will reduce monthly mortgage costs by up to $286 and is expected to help some 100,000 families become homeowners, Jean-Yves Duclos, minister of families, children and social development, said in a prepared statement.

Sources consulted by Global News, though, had either negative or mixed reviews of the proposed incentive. Here’s what you should know:

Qualifying for the incentive

In order to participate in the FTHBI, you must meet two main requirements: be a first-time homebuyer and have an annual income of no more than $120,000.

The government sets out the criteria for who can call themselves a first-time buyer, a definition that is more nuanced than one might think. The income test is subject to requirements set out by lenders and mortgage loan insurers.

Buyers must come up with their own cash for a down payment of at least five per cent of the property value, but the incentive is meant only for mortgages greater than 80 per cent of the home value. In other words, if you’re planning on a down payment of 20 per cent or more, this isn’t for you.

The maximum home price you can aim for is four times your income plus the incentive amount.

Click here to find out how the math works, and if it's a good idea for new home buyers. The opinions mentioned herein are not that of Sutton Showplace Realty.

https://globalnews.ca/news/5398742/first-time-home-buyer-inventive-good-deal/?fbclid=IwAR1OS6el35_EXfNY40_3Tuq-28b9ofLsTk_KIJO9H1V5xh6tA6Ukz6BuN6A

  Buyers  News

Happy Fathers Day

16 June 2019
Sutton Showplace Realty Chilliwack

Congratulations to the winner of our Father’s Day Contest! Thanks everyone for participating!


Any man can be a father, but it takes a special person to be a dad...

We hope you all had a wonderful Father’s Day.


Don't forget to claim your Home Owner Grant

03 June 2019
Sutton Showplace Realty Chilliwack

Friendly reminder that if you've received your Property Tax Notice, now's the time to claim your Homeowner Grant.


Link for Chilliwack: https://bit.ly/2JWpXAb
Link for Abbotsford: https://bit.ly/2W77tOX
Link for Mission: https://bit.ly/2QE2jsm


OPEN HOUSES

24 May 2019
Sutton Showplace Realty Chilliwack

If you're interested what OPEN HOUSES our Agent's are hosting, we advertise weekly on our Facebook Page.
Check them out here: https://www.facebook.com/suttonshowplacerealty/


Free Home Valuation

21 May 2019
Sutton Showplace Realty Chilliwack

Curious what your Home Value is in this changing market?

Request a free report by clicking here: https://suttonshowplace.ca/Market-Value