Slower Housing Sales and Competing Mortgage Brokers Lead to Low Mortgage Rates.

Canadian homebuyers are being offered some of the lowest mortgage rates seen in years as lenders battle to drum up new business.

The standard five-year fixed-rate mortgage rates have fallen to their lowest level in two years which means borrowers just about everywhere across the country can take their pick of offerings well below three per cent according to Ratehub.ca – a website with the stated mission to help Canadians make smarter financial decisions.

Lenders are offering five-year fixed rates as low as 2.64 per cent for certain buyers, and even higher-risk borrowers may be able to find a loan for 2.89 per cent. These are the lowest range since the summer of 2017.

Lenders finance fixed-rate loans based on the rates they can get in the bond market. Essentially, they'll borrow money themselves at one rate, loan it out to a borrower at a higher rate and make money on the spread. The yield on a five-year Government of Canada bond dipped below 1.3 per cent this month. If a lender can borrow funds for as little as 1.3 per cent then turn around and make money by loaning it out for twice that rate, they have every incentive to keep offering those deals.

The Stress Test is Here to Stay

Evan Siddall, chief executive officer of Canada Mortgage and Housing Corp. has become a passionate defender of the tougher mortgage qualification rule because he felt no one else was publicly standing up to support the federal program against criticisms from groups working in the real estate sector. He claims Canada would need a “calamity” in the housing market to warrant adjusting the mortgage stress test, which is helping affordability.

Reference: https://www.theglobeandmail.com/business/article-easing-the-mortgage-stress-test-would-increase-debt-bump-housing

More Details for First-Time Home Buyer Federal Incentive

The new federal incentive for some first-time home buyers, for which CMHC would provide up to $1.25 billion in interest-free loans over three years, will launch in September.

First-time home buyers taking advantage of the incentive to supplement their down payment will share any increase in value with the government when the house sells. They will have an option to buy out the government earlier if they choose. They would have to repay the government after a maximum of 25 years if the house is not sold.

Will CMHC Insure mortgages beyond 25 year?

Not Likely.

When asked by an audience member for his views on the prospect of extending amortization terms on CMHC-insured mortgages beyond 25 years, to 30 or even 50 years, Mr. Siddall, chief executive officer of Canada Mortgage and Housing Corp. responded bluntly: “If you extend amortization, you’re increasing demand and increasing debt. So, you know my answer: I think it’s dumb,” he said, adding, “Fifty years is dumber than 30.”

Reference: https://www.theglobeandmail.com/business/article-easing-the-mortgage-stress-test-would-increase-debt-bump-housing

Want to Volunteer for a Meaningful Organization?

Put your professionalism and enthusiasm for a better world to work by volunteering for one of these organizations. They’re looking for help, and they need people like you to keep doing what they do best!

The Victoria Stroke Recovery Association provides weekly programming and activities that are designed for stroke survivors and their caregivers. They are looking for a treasurer and secretary who would be required to attend their weekly Friday meetings.
Contact: Karol Sanderson 250-383-4865.

Victoria Women’s Transition House Society is seeking board members. Successful candidates will bring knowledge and experience to the board in one or more of the following areas: governance and fiduciary oversight, legal practice, policing and law enforcement, outreach and advocacy, strategic thinking and business planning, building and nurturing relationships.
For more information contact: Heidi Gayleard board@vwth.bc.ca

The Victoria Brain Injury Society is looking for enthusiastic and compassionate people to assist with their Thursday night yoga group and their Thursday afternoon art group. If interested, go to vbis.ca/volunteer-opportunities to fill out an application form.
Further inquiries can be directed to volunteer@vbis.ca

YMCA-YWCA Vancouver Island is looking for a Volunteer Group Fitness Instructor — Senior Strength Downtown Victoria YMCA-YWCA. The volunteer designs, modifies, and instructs safe, effective and appropriate fitness programs to meet the needs of members, community and special populations in a group fitness setting.
For more information or to apply contact: hr@vancouverislandy.ca

Victoria Symphony’s behind-the-scenes production for Victoria Symphony Splash. The production team makes sure everything on site is set up and taken down, from carrying folding tables, to setting up tents, to bringing food to the barge.
For more information on this and other volunteer opportunities contact: Meg Monteith 250-412-1983.

Vancouver Island Local History Society needs a Garden volunteer for Gardens at Point Ellice House. Volunteers are central to operations at Point Ellice House Museum and Gardens. Volunteers create memorable experiences for visitors to this special place. At the direction of head gardener, volunteers assist with care and maintenance of the gardens/grounds.
Contact: Kelly Black 250-380-6506 or Volunteer@PointElliceHouse.com

Royal Jubilee Hospital is looking for musical entertainment —- piano, flute, guitar, etc. Do you play an instrument? Would you like to interact with patients in a healthcare setting, while practising your instrument? VIHA is looking for volunteers who will play relaxing music on the nursing units. The goal of this new program is to enhance patient care and patient experience.
Interested? Contact Ming.Deng@VIHA.CA

Indigenous Perspectives Society wants volunteers for National Indigenous Peoples Day, June 21, on the traditional lands of the Teechamitsa Family, the Songhees Nation and the Esquimalt Nations. Volunteers can register online.
For more information contact: Michele Oatman 250-391-0007, ext. 221.

Victoria is an Excellent Place to Purchase Real Estate

MoneySense ranked the top 35 cities to buy real estate in Canada for 2019, and Victoria BC came in at 4th place. That’s no surprise to those of us who live here!

Their criteria included value and affordability, momentum of price appreciation over other communities, and the expert insight of Realtors® who reported on living desirability.

This is a link to their resulting statistics. https://www.moneysense.ca/spend/real-estate/35-top-canadian-cities-to-buy-real-estate-2019

Housing for Seniors

Nineteen per cent of B.C.’s population is 65 years old or older, according to CMHC. That number is expected to increase by 600,000 to 25 per cent by 2036. The rapid growth in the numbers of our elders has made it vital for housing to be built to accommodate them.

So, it is a good sign that for the first time in seven years, the vacancy rate for seniors’ housing has improved compared with the previous year. On the Island, the vacancy rate for standard spaces improved to five per cent from 3.3 per cent in 2018. Greater Victoria’s rate improved to 6.3 per cent from 3.5 per cent.

(Photo: Victoria's skyline. Photograph By DARREN STONE, TIMES COLONIST)
Read the full Times Colonist article: https://www.timescolonist.com/business/b-c-seniors-housing-vacancy-rate-rises-1.23843892