All posts by VCI Admin

Luxury Mansion Rentals for Dirt Cheap

…At least that’s what CTVnews says.

The city of Vancouver is facing a crisis in housing affordability, with one bedroom units averaging about $1,730 per month.

But these rentals offer a single room in a multi-bedroom house for anywhere between $700 and $1,500, with more than 5,000 empty bedrooms available across the city.

“Maybe the cheapest real estate right now is mansion rentals,” Roy said.

While most owners contacted by CTV News said they don’t want groups renting out the homes, the rentals present a cheaper housing alternative for students and young professionals.

Sehrish Qureshi is one of 14 students who applied online and was placed in a Vancouver mansion nicknamed “the castle,” paying around $1,000 a month for a mansion with a pool, home theatre, and games room.

When move-in day arrived, she was shocked by the furnished, $5-million home.

“Me and my family were just like, ‘What? Is this for real?’” she said.

“I’ve compared it to some of my classmates, and they pay, like, $1,300, $1,400 for small studio apartments in downtown … I’m so happy with what I’m paying.”

Read the full article here.

Friday Free-for-all! March 1st 2019

Well, well, well. Will you look at that, it’s Friday already!

And that means it’s open topic thread time again, here are a few recent links to kick off the chat:

RBC warns against stoking home prices
BC money laundering an ’emergency’?
End of the month inventory
7% correction same as 30 year mortgage
Soft landing

So what are you seeing out there?

Post your news links, thoughts and anecdotes in the comments below and have a fantastic weekend!

Mortgage brokers stuck in the middle

Mortgage brokers make their money by getting people mortgages. In a softening market this can present a challenge.

FICOM is the agency that regulates mortgage brokers and they are issuing a warning:

Brokers should not overleverage their clients; this may be done by fudging applications – overstating the income of a borrower to obtain a bigger loan (and hence a bigger commission), said Carter, who also warned brokers of working with unregistered fixers.

Carter told brokers in Vancouver that the days of “how to get to yes” are over with new market uncertainty, and slumping sales and prices. Now, brokers need to be extra vigilant and learn “when to say no.”

He said Canadians could be in for a rude awakening if real estate prices fall and they’re still saddled with big mortgages and even loans against their equity, suggested Carter. And the brokers who brought loans to those homebuyers will face extra scrutiny, he said, which is why he’s calling on the industry to ease back the throttle on new mortgages that may be contrary to the best interests of the public.

Read the full article here.