Category Archives: BC

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.

Vancouver condo prices go negative

Sales down, inventory up and prices are down for condos in the greater Vancouver area :

The price of a condo in Greater Vancouver is coming down. REBGV reported a benchmark price of $658,600 in January, down 0.8% from the month before. This represents a 1.7% decline compared to the same month last year. In the City proper, condo apartments in Vancouver East fell to $530,500, down 3.9% from last year. In Vancouver West prices fell to $783,400, down 3.6% from last year. Prices are falling, but they still have a long way to go for typical incomes.

Read the full article here.

Vancouver Sales hit 18 Year low

If you were hoping 2019 would kick off with a booming real estate market… well, it’s not going so well.

“After three or four years of a very robust market and escalating prices, this certainly seemed to be a year of transition. We went from more of a sellers’ market, to a balanced market, and now — a buyers’ market.”

The drop in benchmark price for a detached home accompanied a drastic slump in sales, year-over-year.

The total number of homes sold across Metro Vancouver in 2018 dropped 31.6 percent from 2017, with 24,619 transactions.

That’s the lowest number recorded in the region since 2000, and 25 percent below its 10-year average.

Read the full article here.