Sutton Showplace Realty (2015) Chilliwack

  604-858-1800 

Featured Listings - Jan 24

25 January 2018
Sutton Showplace Realty Chilliwack

Check out just a few of our newly listed homes. Stay tuned on Friday for OPEN HOUSE info for this upcoming weekend!


What about the recent Bank of Canada interest rate increase?

22 January 2018
Sutton Showplace Realty Chilliwack

Short Version

The math is as follows:

A payment increase of ~$12.69 per $100,000.00 of mortgage balance. (unless you are with TD or a specific Credit Union, in which case payments are fixed and change only at your specific request)

i.e. – A mortgage balance of $400,000.00 will see a payment increase of ~$50.78 per month

Long Version

Qualification for variable rate mortgages has been at 4.64% or higher for some time. This required a household income of greater than $70,000.00 for said $400,000.00 mortgage .

Can 99% of said households handle a payment increase of $50.78 per month? Yes.

Will 99% of households be frustrated with this added expense? Yes.

Ability and annoyance are not the same thing.

Have these households enjoyed monthly payments up to $216.80 lower than those that chose a fixed rate mortgage originally? Yes.

Are 99% still saving money over having locked into a long term fixed from day one? Yes.

Should I lock in?

A more important question is ‘why did we choose variable to start with’? And this may lead to a critical question ‘Is there any chance I will break my mortgage before renewal’?

The penalty to prepay a variable mortgage is ~0.50% of the mortgage balance.

The penalty to prepay a 5-year fixed mortgage can increase by ~900% to ~4.5% of the mortgage balance. A massive increase in risk.

There are many considerations before locking in, many of which your lender is unlikely to discuss with you. It’s to the lenders advantage to have you locked into a fixed rate, rarely is it to your own benefit.

At the moment decisions are being made primarily out of fear. Fear of $12.69 per month per $100,000.00.

What about locking into a shorter term?

Not a bad idea, although this depends on two things:

  1. Which lender you are with as policies vary.
  2. How many years into the mortgage term you are.

If your net rate is now 2.95%, and you have the option of a 2-year or 3-year fixed ~3.00% – this may be a better move than full 5-year commitment.

Do not forget the difference in prepayment penalties, this is significant.

Bottom line – Know your numbers, know your product, and stay cool.

These are small and manageable increases.

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Matt Robinson - Dominion Lending Centres.


Changes to Mortgage Rates in January 2018

19 January 2018
Sutton Showplace Realty Chilliwack

Canada's biggest lenders have raised their prime lending rates on the same day the country's central bank moved its benchmark interest rate a quarter percentage point higher.

The Bank of Canada raised its key lending rate by a quarter point to 1.25 per cent Wednesday morning, the third time it has moved its benchmark rate from once-record lows last summer.

The bank rate has an impact what Canadians pay lenders for things like mortgages and personal loans. While the move means borrowers can expect to pay more, savers can expect to earn more, too, on savings accounts and guaranteed investment certificates.

That's exactly what happened later on Wednesday afternoon, when Canada's five biggest banks — Royal, TD, CIBC, BMO and Scotiabank — all hiked their own prime lending rates by a quarter percentage point, effective tomorrow.

As of Thursday, Jan. 18, all five now have the same prime lending rate of 3.45 per cent. Prior to the Bank of Canada's move, their rates were all 3.2 per cent.

The central bank was widely expected to raise its rate after data in recent months showed gross domestic product growing, the job market healthy and the cost of living ticking higher.

The bank's benchmark rate is now at its highest level since 2009.

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Article from http://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.4490918


Chilliwack Real Estate Statistics

15 January 2018
Sutton Showplace Realty Chilliwack


Thinking About a Career in Real Estate?

10 January 2018
Sutton Showplace Realty Chilliwack

If you've been  thinking of starting a career in real estate, but are not sure if it is the right path for you, you can book an appointment with us and we will go over all the details with you and help you make a sound decision.

Our brokerage will not only give you the training and support you are looking for but will do so without burdening you financially. We have a fair fee structure that is competitive with other offices.

As a successful and growing Canadian company, our brokerage will assist you by teaching you the tools to keep your business running smoothly, and growing at the same time.  Sutton offers you support, sales tools, technological tools, support, growth, and a brand and logo you will feel proud to have on your marketing materials.

Below are a few tips to keep in mind if you're interested in becoming a Licensed Realtor:

  • It's important to be self-motivating and set goals to achieve. Realtors work with minimum supervision.
  • You must be excellent with communicating and returning calls/emails to clients and colleagues in a timely manner. Can you speak easily with a stranger on the phone, or knock on a strangers door?
  • Maintain a positive attitude and try not to jump to conclusions before finding out facts.
  • You can set your own work hours, work from home or an office at a brokerage.
  • It's important to continue your real estate education and keep up to date with the latest technologies, so you can offer clients educated advice.These are just a few of the skills that we believe are important to Realtors to be successful in their careers.

If you'd like to learn more, please contact our Managing Broker, Jake Siemens. jsiemens@sutton.com |  604-858-1800. He'd be happy to meet with you, show you around our office and answer any questions you may have about real estate. If you're already licensed and looking for a friendly and professional office to join, we'd love to have you!


Will This BC Region continue to be a hotspot in 2018?

03 January 2018
Sutton Showplace Realty Chilliwack

The housing market in BC’s Fraser Valley region experienced skyrocketing demand and prices this year, but will the region continue to be a hotspot in the New Year?

In November 2017, the region saw a roughly 40 per cent year-over-year increase in home sales with a total of 1,743 units, according to the Fraser Valley Real Estate Board’s (FVREB) latest data release, published this month.

FVREB president Gopal Sahota says although “2016 was a hotter year, 2017 is on fire” with attached sales driving the market.

“The attached homes, which are the multi-family [units] such as townhomes and condos, are in very strong demand as opposed to historical demand on detached homes,” says Sahota.

Last month, attached sales represented 53 per cent of all market activity.

Instead of buying pricey homes in Metro Vancouver, Sahota says buyers are opting for attached homes in Fraser Valley because of their more affordable prices.

The benchmark price of a condo in the Fraser Valley was $376,700 in November, a 36.6 per cent increase compared to a year ago. For a townhome, the benchmark price was $505,700, up 19 per cent compared to November 2016.

According to Sahota, the key reason for the Valley’s soaring demand is BC’s booming economy.

“The communities in the Fraser Valley are putting a lot more effort into creating jobs in this region and the growth and projections are quite high,” says Sahota.

And the FVREB president says strong demand could continue in 2018 as the economy continues to improve.

“Consumer confidence is strong out there and jobs are coming in. People feel more confident jumping into bigger ticket items like homes,” says Sahota.

However, there are potential red flags that could impact demand next year.

On January 1, the Office of the Superintendent of Financial Institutions’ (OSFI) new stress test will require all uninsured mortgage borrowers to qualify against the Bank of Canada’s five-year benchmark rate, or at their contract mortgage rate plus an additional two per cent.

Sahota says the mortgage rules will likely have an effect on slowing down the market. He adds that possible interest rate hikes next year could also be a headwind that impacts demand.

As for prices next year, Sahota says it’s a waiting game but prices will rely on the balance between supply and demand in the market.

Article: https://goo.gl/2nADZf