Category Archives: Budget

Everybody wants to help you buy a house

Pointed out by southseacompany: all the major political parties want to help you buy a house and the promises are piling up.

They all love the idea of taking taxpayer money to drive up house prices, the current government even wants to get in on the speculation and help out with a 5-10% shared equity program.

The government also confirmed that, because the program gives it an equity stake in the mortgage, it will share any gains or losses in the value of the home over the life of the loan. Any money the government makes on the program will go back into general revenues.

Read the full article here.

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.

Expensive to buy, cheap to own

Having trouble saving up enough for a teardown house in a terrible neighborhood? Good news! Although its expensive to buy real estate in Vancouver, it’s one of the cheapest places for property taxes in Canada or the US.

The owner of a C$1 million ($770,000) home in the Pacific Coast city will pay just C$2,468 a year in property tax, compared with C$6,355 in Toronto or more than C$10,000 in Ottawa, according to a new study by real estate website Zoocasa that looked at rates in 25 major Canadian markets.

Read the full article here.

Millionaires protest exorbitant unfair tax

From justme: people that own homes worth more that 3 million dollars may have to pay an extra housing tax. For a 3.5 million dollar property that could cost as much as $50 to $100 per month.

“Owners of multi-million dollar homes are probably not going to endear themselves to the public by pleading financial hardship. Nevertheless, more than 100 Vancouver residents gathered in a park last week to protest a surtax introduced by the provincial NDP government on homes worth more than $3 million. They wielded signs claiming the government “wants to confiscate your hard-earned home savings!” The tax, they said, is “unfair,” “exorbitant” and “predatory.”

Read more here.

Tougher to get a mortgage in 2018

In the new year we’ll see a ‘stress test‘ added to all new uninsured mortgages, are you ready for that?

The Office of the Superintendent of Financial Institutions (OSFI), Canada’s banking regulator, confirmed earlier today that there will now be a qualifying “stress test” for all uninsured mortgages, affecting consumers with downpayments of 20 percent or more.

Under current housing rules, only borrowers with a downpayment of less than 20 percent require mortgage insurance. This category of borrowers are already subject to a mortgage “stress test” that was introduced back in July 2016, amidst concerns about rising household indebtedness.

Right now, if you’re applying for a mortgage with a downpayment of 20 percent or more, the lender will assess if your financial situation is robust enough to afford a five-year mortgage qualifying rate, which currently sits in the range of 4.64 to 4.89 percent.

Under the new rules, OSFI will require that lenders use that same five-year mortgage rate plus two percent — essentially you’ll need to have income that qualifies you to afford an interest rate on a home loan of roughly seven percent.

Dave Madani says this is equivalent to a 17% reduction in the maximum mortgage people will be able to qualify for. Read the full article over at Vice.