Category Archives: Vancouver Real Estate and Mortgage Financing

A series of videos discussing mortgage financing on real estate in Vancouver, BC, Canada.

What is CMHC Mortgage Insurance? Jonathan Fung Mortgage Specialist Explains!

Posted on March 21, 2013 by mike

CMHC Mortgage Insurance Explained by Jonathan Fung Vancity Mortgage Specialist!

To answer this question, I recently met with Jonathan Fung, a mortgage specialist with Vancity who was kind enough to discuss CMHC mortgage insurance with us.

What is CMHC Mortgage Insurance?

CMHC stands for Canada Mortgage and Housing Corporation, which is a Crown Corporation owned by the Federal Government. One of CMHC’s core functions via its Mortgage Insurance is to assist illegible buyers purchase a home in Canada with less than a 20% down payment.

Lenders and Financial Institutions view property purchases with less than a 20% down payment as higher risk of default (ie Borrowers not paying their mortgage). Without CMHC mortgage insurance, lenders typically will not lend to borrowers with less than a 20% down payment.

CMHC insurance is available and required anytime a purchaser wants to buy home in Canada with between a 5% and 20% down payment. CMHC Mortgage Insurance does not insure property purchaser, but rather the financial institution where the purchaser is borrowing the money. CMHC Mortgage Insurance insure the lender so that if the borrower doesn’t pay their mortgage, the lender gets their money back.

Whats the Catch with CMHC Mortgage Insurance? Continue reading →

July 2012 Canadian Mortgage Rules! 25 Year Amortizations for Insured Mortgages Only & CMHC Insurance for Homes over a Million Gone!

Posted on June 21, 2012 by mike

New Canadian Mortgage Rules Come Into Effect July 9 2012

Federal Finance Minister Jim Flaherty recently announced major changes to Canada mortgage lending rules.

This move continues the theme of the 2011 mortgage rule changes were the Federal Government does a focused cooling of the housing market without resorting to raising interest rates which would have a negative impact on the overall economy.

What are the Changes in Canada’s Mortgage Rules?

The four major changes effective July 9, 2012 are as follows: Continue reading →

Posted in: For Buyers, For Sellers, Vancouver Real Estate and Mortgage Financing
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An Answer to Florin’s Question: Can a Presale Bought High Ratio be Completed on Low Ratio?

Posted on June 13, 2012 by mike

Financial Leverage and Presale Condos in Vancouver

I LOVE Questions and Comments on my blog posts and appreciate them HUGELY!!

We recently had a great question (Thanks Again Florin!) in the comments section of Episode 2 of How to Buy a Presale Condo where we discussed the advantages of pre-construction condos for Owner/Occupiers.

This question was SOOOO GOOD, I decided to bring in a mortgage broker, Chad Watts and shoot an entire video on this topic!

Florins Question:

I asked my mortgage specialist about point 3 “Financial Leverage.” The one where you mentioned “buyer who previously was a high ratio borrower to become a low ratio borrower” if the property value goes up. She told me that this in not the case anymore. The bank will only base the financing on the purchase price of the home. Is this correct and if so is this true to all banks?

The mortgage specialist Florin spoke to is right.

There are rules restricting lenders from giving a mortgage on the actual market value of a presale condo if it has gone up in value from when it was purchased pre-construction to when it completes.

BUT, this does not mean the buyer of a presale condo in Vancouver cannot leverage the increase in value of the property between the time of purchase and the completion date.

Can a Presale Bought High Ratio be Completed on Low Ratio? Yes, in a Roundabout Way!

This only works when the presale Continue reading →

Posted in: For Buyers, How To Buy a Pre Sale Condo in Vancouver, Vancouver Real Estate and Mortgage Financing
Tags: Are Presale Condos a Good Option in BC, Chad Watts Mortgage Broker, Completing on a Presale Condo, Financial Leverage and Presale Condos in Vancouver, High Ratio Presales, How Muhc are Presale Condos Worth, Low Ratio Presales, Market Analysis on Presale Condos, Presale Condo Advice, Presale Condos and Mortgages, Presale Condos in Vancouver, Presale Condos Vancouver, Presale Realtor, Should I Get a Realtor for Presale, Vancouver BC Presale Condo, Vancouver Condo Presale, Vancouver Condo Presales, Vancouver Investment Properties, Vancouver Presale Condos, Vancouver Presale Condos for Investors, Vancouver Presales
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Canada Mortgage Calculator with 40 Year Amortizations!

Posted on March 27, 2012 by mike

Canadian Mortgage Calculator for Vancouver Real Estate with Amortizations up to 40 Years

I am both a property owner in Vancouver and a Realtor. I am constantly watching the mortgage market here in Canada to see how changes to mortgage interest rates and amortization affect both the Vancouver real estate market and my personal Continue reading →