MORTGAGE UPDATE FROM GIBBARD GROUP FINANCIAL November 2015

Bank of Canada keeps their bank rate “as is”
This is great news for those with a VRM mortgage.  The last date for the Bank of Canada to change
interest rates is

.

Need to figure out how much your payments could be?
Click below!

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Did you know?
Your cellular phone bill is now being reported on a monthly basis to the credit bureau. For those of you looking to purchase a home you will definitely want to make sure you pay this one on time.

Fall maintenance tips
from CMHC
  • Have furnace or heating system serviced by a qualified service company every two years for gas furnace, and every year for an oil furnace, or as recommended by the manufacturer.
  • If you have central air conditioning, make sure the drain pan under the cooling coil mounted in the furnace plenum is draining properly and is clean.
  • Lubricate circulating pump on hot water heating system.
  • Bleed air from hot water radiators.
  • Check chimneys for obstructions such as nests.
  • Vacuum electric baseboard heaters to remove dust.
  • Remove grilles on forced-air systems and vacuum inside the ducts.
  • Disconnect the power to the furnace and examine the forced-air furnace fan belt, if installed, for wear, looseness or noise; clean fan blades of any dirt buildup.
  • Turn ON gas furnace pilot light, set the thermostat to “heat” and test the furnace for proper operation.
  • Check and clean or replace furnace air filters each month during the heating season.
  • Check to see that the ductwork leading to and from the heat recovery ventilator is in good shape.
  • If the heat recovery ventilator has been shut off for the summer, clean the filters and the core, and pour water down the condensate drain to test it.
  • Check to see that bathroom fans and range hoods are operating properly.
  • Check smoke, carbon monoxide and security alarms, and replace batteries.
  • Clean portable humidifier.
  • Check sump pump and line to ensure proper operation.
  • Replace window screens with storm windows.
  • Remove interior insect screens from windows to allow air from the heating system to keep condensation off window glass and to allow more free solar energy into your home.
  • Ensure windows and skylights close tightly.
  • Ensure all doors to the outside shut tightly.
  • Cover outside of air-conditioning units and shut off power.
  • Clean leaves from eaves and roof, and test downspouts to ensure proper drainage.
  • Drain and store outdoor hoses.
  • Winterize landscaping; store outdoor furniture, prepare gardens and protect young trees for winter.
  
To keep up to date on:
Economic news important
to your mortgage
Get a heads up when
interest rates are changing
 Current interest rates
Contact us today at:
(604) 313-3199

How will the Liberal win affect your mortgage?
With a new government in power, a new mandate will no doubt have some affect on the Canadian economy. While election platforms are typically adjusted over time, key planks in the Liberals’ platform suggest significant new directions for Canada over the next few years.
Some common issues emerged during the campaign, such as a renewed emphasis on skilled trades to address labour market mismatches across the country. Another concern is escalating home prices in high-demand markets such as Toronto and Vancouver, with the Liberals promising a review.

Here are some highlights from the Liberal’s platform and how you might be affected if you are in the market for a new home or are about to renew your mortgage.

  • The Liberals will modernize the existing Home Buyers’ Plan to allow Canadians impacted by sudden and significant life changes to buy a house without tax penalty. This will ease the burden on Canadians facing job relocation, the death of a spouse, marital breakdown, or a decision to accommodate an elderly family member.
  • The Liberals will direct the CMHC and the new Canada Infrastructure Bank to provide financing to support the construction of new, affordable rental housing for middle- and low-income Canadians.
  • The Liberals are expected to increase government spending to support the economy. More spending means more debt and more debt might result in an increase in interest rates.  This will have an affect on both fixed mortgage rates and variable mortgage rates but any increases are not expected to be drastic.
  • For Tax-Free Savings Accounts, the rise in the ceiling for annual contributions from $5,500 to $10,000 as of 2015 will be reversed.
  • Personal Income Tax (PIT) brackets will be adjusted. For the middle bracket, covering taxable incomes $44,700 to $89,400 in 2015, the rate will fall from 22% to 20.5% as a new top bracket is created for taxable incomes over $200,000, raising the highest federal rate from 29% to 33%. With this new federal bracket, the combined federal-provincial top PIT rate in six provinces will be 50% or higher.
If you have any questions or concerns about your mortgage needs, please give us a call.  We are here to help!
Source:  Scotiabank and CMT

Best Mortgage Rates

Term

Our Rates

1 year fixed

2.29%

2 year fixed

2.09%

3 year fixed

2.34%

4 year fixed

2.54%

5 year fixed

5 year special**

2.64%
2.54%

7 year fixed

3.39%

10 year fixed

3.84%

5 year Variable Rate

5 year Variable special**

Prime-0.50%

Prime-0.65%

Rates subject to change without notice.OAC
**Special conditions apply


What’s the difference between a 
Conventional (regular) mortgage
and a Collateral mortgage? 
Conventional MortgageWhen a conventional mortgage is registered, the lender issues paperwork with the exact mortgage amount and terms with the Land Titles Office (LTO) and you cannot increase the loan amount without re-registering the mortgage.  The terms of the mortgage will lay out your payment amount, payment frequency, rate of interest, amortization period and length of term.
For example, if you purchased a property for $500,000 and had a conventional mortgage of $200,000 on a 5 year term rate of 3.00% amortized over 30 years, your payment would be $841.21 per month. These details that are all registered on the mortgage with the LTO.
In the vast majority of cases, the balance on a conventional mortgage only goes down.THE GOOD: 

  • At maturity other lenders will allow you to “transfer” or “switch” your mortgage to them at no cost to you.
  • You can also have another lender approve a second mortgage (such as a Home Equity Line of Credit) and register this behind the other lenders first mortgage.
THE BAD:
  • If you ever want to refinance the mortgage with the same lender, you must pay legal fees to get the mortgage re-registered
Collateral Mortgage
This type of mortgage is similar to a promissory note or loan agreement secured against your home. In this case, the exact loan details (term, etc.) are not registered with the Land Titles Office.  Instead, you sign an internal document with the lender which includes the repayment terms of the mortgage.  Because of this, you can make changes to the terms (such as increase the loan) without needing to have the mortgage re-registered with the Land Titles Office.
Some lenders will give you the ability to register the mortgage for a greater balance (some lenders allow up to 125% of the property value) so that in the future if you ever want to increase the mortgage (and can qualify and the property value is high enough), you can do so without re-registering the mortgage.In the above example, the lender could register a collateral mortgage for up to $625,000 ($500,000 x 125%).  However, the mortgage amount that you requested (the $200,000 / 5 yr. term rate of 3.00% / amortized over 30 years / monthly payment of $841.21) would be the amount you would be given upfront.  The remainder is accessible with the lender’s approval.

THE GOOD: 
  • This does allow you to go back to the same lender and borrow more money (up to the registered limit they approved) without having to register another mortgage.
THE BAD:
  • Lenders will not “transfer” or “switch” a collateral mortgage (transfer or switch is generally a free service offered by a new lender to move your mortgage business over).  If you want to switch lenders at a later date, most likely you will be required to pay legal fees to refinance the mortgage.
  • Lenders may also use a right under Canadian Law called “offset” to utilize a collateral mortgage to pay out any other unpaid debts you have with them.  If you have equity in your home and you have defaulted on another loan or credit card, the lender can increase your collateral mortgage and pay out this other debt.
  • If you’re wanting to refinance your mortgage to consolidate debts and/or renovate your home etc, and this lender declines to do so, you would not be able to approach another lender.
If you would like to learn more about the A, B, C’s of mortgages, please contact us!  We’re always happy to help.

New Listing: 414 580 RAVEN WOODS DRIVE (R2012281)

414 580 RAVEN WOODS DRIVE, North Vancouver, Roche Point

List Date: 2015-11-02

List Price: $349,900

Welcome home to the ‘Community’ of Ravenwoods where lifestyle is living in a natural setting and perfect for biking/hiking/skiing enthusiasts… or just escaping the busy city! This N facing 1 bed & den (or 2nd bedroom) condo is like new with no GST or PTT! Perfect for first time homebuyer or investor (unlimited rentals & pets allowed!). It has been tastefully decorated and updates include: engineered hardwood & slate flooring, custom moulding, HD sillouette blinds, wizzard screens, glass shower, granite counter & s/s appliances. This Seasons complex is built with rainscreen technology & has a pro-active board. Transit, shopping, parks nearby. Sit back and enjoy morning coffee or year round BBQ’s on large balcony. View by appointment.

View Full Listing Details

RECENT TESTIMONIAL FOR MICHELE

VIET AND JUDY LE -LOT 19 PASSAGE

“Michele was very professional representing both sides. I think both the seller and us (the buyers) were satisfied with the negotiations and coming to an agreed upon price.

Michele followed up with all of our questions promptly, and the seller would return answers to any questions within 24 hours.

Very satisfied with the whole experience, as she spent the entire day with us viewing property and left only after we’ve exhausted ourselves.”

You were an absolute pleasure to meet and work with Viet and Judy! Thank you for the kind words.  The perfect fit for the home on Passage Island and I know you will enjoy your little piece of waterfront paradise! :) www.northshorehomes.ca

THE 21ST ANNUAL REALTORS CARE BLANKET DRIVE NOV 16-NOV 23, 2015 (1WEEK AWAY)

REALTORS CARE BLANKET DRIVE

The 21st Annual Realtors Care Blanket Drive is almost here! There is a dire need for blankets for the Downtown Eastside homeless right now! The Vancouver Police Dept  deliver blankets to those less fortunate in the Downtown Eastside and currently they are almost at nothing. If you can donate blankets, sleeping bags, warm winter clothing for all ages, new socks and underwear, hats, scarves and gloves please contact Michele at 604-787-7231 for further info where to drop off or pick up.

This is Michele’s 9th year as the REBGV Realtors Care Blanket Drive North Shore Coordinator! Last year NS Realtors and the cities of North and West Vancouver helped to collect over 406 bags!! We delivered to our local shelters including the Lookout Society and Harvest Project, as well as the Covenant House and the Vancouver Police Department. For 9 years we have collected and then have a sorting party where we empty all the donated items to sort into the different categories for the shelters along with delivery. It is a truly wonderful time of year and a special one. These items are very much appreciated and it is shown by the many faces received!

Watch for some pictures of our last party!

 

 

 

 

HOME FOR RENT IN CENTRAL LONSDALE

 

Unfurnished Edwardian ‘Heritage Home’ with 1600 sq ft up and 900 basement, features beautiful woodwork with some original hardware throughout a large dining room, cozy living room with wood burning fireplace, 4 upstairs bedrooms, and large bright, newly updated kitchen with new appliances, sink and counters. Rent is $3500 with quite low cost separate utilities (high efficiency gas furnace, gas hot water, gas stove). Separate meters.

 

Some key features to note:

  • Located in Central Lonsdale – North Vancouver
  • 5 minutes to 3 bus routes to downtown
  • 5 minutes to Lonsdale shopping, restaurants, etc
  • Deck with great mountain views off kitchen
  • Spacious porch at Entrance
  • Living Room with Wood Burning Fireplace
  • Separate Spacious Dining Room
  • Bright Kitchen with new Windows
  • Kitchen Eating Area
  • Wood Floors in main floor Living/dining areas, hallways and bedrooms
  • New Kitchen Counters
  • New Gas Range, fan hood
  • New Fridge/Freezer
  • Dishwasher
  • Updated Powder Room on Main Level
  • Beautiful Staircase to Upstairs Bedrooms
  • Mountain Views from 1st bedroom and bathroom
  • Good sized 2nd, 3rd & 4th Bedrooms (on same floor)
  • Spacious Recent Full Bathroom Upstairs
  • Carpeted Basement Recreation Room;
  • Laundry: Washer, Dryer, sink, table
  • Lots of Extra Storage in Basement
  • Lovely leafy front Garden; rear garden and patio separated from Lane House
  • Lane House is oriented away from the main house
  • No Smoking
  • No Dogs (or snakes)

Central Lonsdale is a great neighbourhood, close to park, schools, community centre, restaurants and Lonsdale shopping and entertainment. The house is centrally located on a quiet street with a parking space and lots of street parking. The Sea Bus to Downtown is an easy connection.

 

CONTACT MICHELE FOR MORE  DETAILS.

New Listing: 414 580 RAVEN WOODS DRIVE (R2009560)

414 580 RAVEN WOODS DRIVE, North Vancouver, Deep Cove

List Date: 2015-10-20

List Price: $349,900

Simply put… this home is beautiful and someone is going to be very lucky. A spacious 1 bedroom & den (easy 2 bedroom) filled with positive energy, lovingly maintained, lightly lived in, and ready to move into. Located on the cool north side, with lots of natural light, morning sun, and evergreens out your window. The home has been tastefully updated with engineered hard wood & slate flooring, custom crown & baseboard mouldings, Hunter Douglas Sillouette Blinds, Wizard screens, glass shower, granite counters and stainless appliances. If quality is what you seek, then 414-580 Raven Woods Drive is the one. Built with rain screen technology, the building is well maintained with a pro-active board, allows pets and rentals & has a strong community spirit. OPEN OCT 25th 2-4pm.

View Full Listing Details