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Dear Valued Realtor Partners,

If you have tuned on the news over the past few days, you will have heard about the new mortgage rules that are coming into effect January 1st, 2018. Over the next few weeks and months ahead, you will hear a lot of commentary on whether these rules are good or bad for the consumer and necessary or unnecessary for the stability of the mortgage industry in Canada. Without question, you will hear that the sky is falling and that NO one will ever qualify for a mortgage again. My favorite is "the housing market in Canada is going to come crashing down". With all the challenges, the Canadian mortgage industry has faced since 2007, including one of the worst economic crashes and some of the most significant rule changes to our industry, the housing market has continued to thrive. Although these new changes are significant and will have an impact to the consumer's borrowing power, we believe the industry in time will adjust as it always does.

Saying all that, the one concern that I have after January 1st, 2018 is that it will become more difficult to qualify for a mortgage and to understand how all the industry changes over the past year affects you, NOW more than ever you need to be working with a mortgage professional. With my experience, knowledge and the variety of mortgage lenders and options I can provide, my services have never been more important. With access to most of the major banks, credit
unions, mortgage companies and private lenders, I have the ability to shop the market place to provide you a tailored mortgage solution.

So, what was the biggest change announced? The biggest change to the new rules is surrounding the mortgage qualification and incorporating a stress test to each mortgage application. Although a similar test was incorporated last year to high ratio mortgages (anyone with less than 20% equity), this new rule now applies to anyone with 20% or more equity in their home (conventional mortgage). Qualification for all conventional and unconventional mortgages will now be calculated at a minimum qualifying rate which is the GREATER of the five-year benchmark rate (currently 4.89%) published by the Bank of Canada or the contractual mortgage rate +2%. So, to put this in perspective, if the 5-year fixed rate is at 3.25%, the lenders are required to qualify your mortgage using payments based on the rate of 5.25% (3.25% + 2.00% = 5.25%).  You don't need to be a mathematician to understand that these changes will drastically effect how much you will qualify for your next mortgage.

If you are concerned about how these changes could affect you and your clients, please don't hesitate to reach out to me to discuss how I can help your clients to navigate through these changes. 

Please do not hesitate to call me at 604-862-8526 or email me at sabeena@xeva.ca so that we can arrange a time to go over your options.

For more information and to keep updated on what is happening please
go to my blog - www.sabeenabubber.ca

 

Sincerely,

Sabeena

604-862-8526








Variable rate holders win again, as the Bank of Canada maintained the overnight rate. They also released a summary of where they believe the economy is at. Certainly worth a peruse if you like that kind of thing, it's on my blog here..."

What does this mean for you? It means everything today is exactly as it was yesterday.

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Bank of Canada Rate Announcement April 12, 2017 Click Here

Regulatory Changes could affect your ability to purchase or refinance your home to consolidate debts or do home renovations.  If you are thinking about doing any of these, please contact me as soon as possible and I will walk you through the possibilities based on your short and long term goals.

What this means to you is that once again the prime rate on your mortgage, line of credit or student loan will stay at 2.70%.   This of course is great news (and I'm sure you're happy you chose a variable rate), I like to remind you to make the most of the low payments you still have as the rate will increase in the future.  I recommend paying as much against your mortgage now while the interest is low.  Every little bit helps. 

Based on this recent announcement, and the anticipation that the prime rate will still remain low in 2017, unless you feel otherwise, I'd recommend that you remain with your current variable rate product.  Please call me if you are considering a change.









Looks like 2017 begins the same way 2016 ended, with the Bank of Canada announcing that it has maintained its target for the overnight rate at 1/2 percent. While the Bank Rate is correspondingly 3/4 of a percent, with the deposit rate holding steady at 1/4 percent as well. The Bank of Canada also released it's January 2017 Monetary Policy Report and noted that "The Canadian economy is expected to expand by 2.1% this year and in 2018."

What does this mean for you? It means everything today is exactly as it was yesterday... which isn't saying much, as yesterday (in case you missed it) had CMHC announce that they were increasing mortgage insurance premiums. Click here to have a read.  

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Bank of Canada Rate Announcement January 18, 2017 Click Here

Regulatory Changes could affect your ability to purchase or refinance your home to consolidate debts or do home renovations.  If you are thinking about doing any of these, please contact me as soon as possible and I will walk you through the possibilities based on your short and long term goals.

What this means to you is that once again the prime rate on your mortgage, line of credit or student loan will stay at 2.70%.   This of course is great news (and I'm sure you're happy you chose a variable rate), I like to remind you to make the most of the low payments you still have as the rate will increase in the future.  I recommend paying as much against your mortgage now while the interest is low.  Every little bit helps. 

Based on this recent announcement, and the anticipation that the prime rate will still remain low in 2017, unless you feel otherwise, I'd recommend that you remain with your current variable rate product.

 You may pass this along with my contact information should you think this would be informative to a friend, family member or business associate.

 I am never too busy for your referrals, so please pass on my name and number to your friends family and coworkers.  Send me a referral and when their mortgage is funded, I will send you a thank you gift!

Sincerely,

Sabeena 604-862-8526

Sabeena Bubber, Mortgage Professional
Xeva Mortgage 
Tel: (604) 862-8526
Web: http://www.sabeenabubber.ca







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2017 Increased Homeowner Grant Threshhold

Good afternoon!

The BC Provincial Government is increasing the home owner grant threshold to $1.6 million, helping keep property taxes affordable for families and ensuring most home owners will continue to receive the full grant this year, Finance Minister Michael de Jong announced today.

For the full article, please read through to my website<a href="http://mandrillapp.com/track/click/30238494/sabeenabubber.ca?p=eyJzIjoiTGVYUTVxOGNhSGxFb09vV284MTNlOFlfSHdnIiwidiI6MSwicCI6IntcInVcIjozMDIzODQ5NCxcInZcIjoxLFwidXJsXCI6XCJodHRwOlxcXC9cXFwvc2FiZWVuYWJ1YmJlci5jYVxcXC9pbmNyZWFzZWQtaG9tZS1vd25lci1ncmFudC10aHJlc2hvbGQtMjAxN1xcXC9cIixcImlkXCI6XCJhOWU3YWMxOWMyNzg0ODA0YTdlMDliYzg3NGVjM2RkY1wiLFwidXJsX2lkc1wiOltcIjE2OGZlOWQ1OTI1ZjU1NjEzNTZmM2RiYTI0MmU5NGNkZWU3MDJkMjhcIl19In0" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&q=http://mandrillapp.com/track/click/30238494/sabeenabubber.ca?p%3DeyJzIjoiTGVYUTVxOGNhSGxFb09vV284MTNlOFlfSHdnIiwidiI6MSwicCI6IntcInVcIjozMDIzODQ5NCxcInZcIjoxLFwidXJsXCI6XCJodHRwOlxcXC9cXFwvc2FiZWVuYWJ1YmJlci5jYVxcXC9pbmNyZWFzZWQtaG9tZS1vd25lci1ncmFudC10aHJlc2hvbGQtMjAxN1xcXC9cIixcImlkXCI6XCJhOWU3YWMxOWMyNzg0ODA0YTdlMDliYzg3NGVjM2RkY1wiLFwidXJsX2lkc1wiOltcIjE2OGZlOWQ1OTI1ZjU1NjEzNTZmM2RiYTI0MmU5NGNkZWU3MDJkMjhcIl19In0&am