All Blog Entries by Steve Harmer

New mortgage insurance rules introduced by the federal government last fall to cool the housing market have led to a sharp drop in insurance volumes for Canada Mortgage and Housing Corp. as fewer home buyers qualify for mortgage insurance.

CMHC said total insured volumes fell 41 per cent in the first quarter of 2017, including a 23-per-cent drop in homeowner insurance volumes and an 87-per-cent decline in the volume of portfolio insurance, which is bulk insurance purchased by financial institutions for their portfolios of uninsured mortgages.

The numbers unveiled on Tuesday offer a window into the impact of the government’s new rules, suggesting they have led to a significant decline in the number of people qualifying for insured mortgages under the

House hunting is challenging enough at any time

Shopping during a seller's market is a whole additional difficulty level—and that's what would-be buyers are seeing across the country. The supply of homes is low, demand is high, and sellers are in control. If you’re not careful, you'll be left drying your eyes with the broken shards of your rejected bid. Sound painful? It is.

So you'd best bring your A-game, or don't bother showing up at all. Check out the seller's market survival tips below to stand out from the competition and get the edge.

Know the signs

Even though you may hear you're in a seller's market, where's the proof? While the market always varies you can watch for these two red flags:

• Houses are selling for more than asking

These days, knowing how to sell a house isn't as simple as sticking a "For Sale" sign on your lawn.

Times have changed—and the good news is the market is currently in your favor. It’s undeniably a seller’s market. In other words, buyers are demanding homes, but there isn't much inventory on the market. Plus, half of home buyers are worried about future rising interest rates and looking to lock into a home soon. As a result, there is pressure on buyers to submit offers quickly, and to offer full or even above list price.

All of this puts sellers squarely in the driver's seat—which can be a lot of pressure if your GPS is broken and you don't know how to navigate this new world. Consider this your crash course in getting up to speed.

Rule No. 1:

When buying or selling a home, using the skilled services of an experienced real estate agent is often preferred.

A good Realtor® is sort of like your own personal Yoda—someone you can trust with your most pressing questions and biggest decisions, guiding you safely toward your destiny (of a brand new home!).

A Realtor may have profound knowledge of the local market, excellent negotiation skills, and other benefits that can serve you well throughout the transaction. Many people are friends with agents, and others may have a close relative in the area who has a real estate license. As you begin selecting a real estate agent to hire for assistance with your upcoming transaction, you may be wondering if you should hire a friend or family member to help

Canadian Airbnb hosts and the Canada Revenue Agency

Contrary to popular belief, Airbnb hosting is not “free money”. In the eyes of the taxman, it’s rental income. That status, however, depends on a number of factors I’ll describe in this section.

Of primary importance is that hosts are documenting expenses and retaining receipts to reduce the impact of tax assessments, come CRA filing time. Credit card receipts don’t cut it with the Agency, as these don’t identify specific items purchased. You need to present the CRA with an actual receipt. This includes receipts for all the little things that make your property special – bathing products, toothbrushes, a selection of special teas, or coffee. That means that hosts are on the hook for every single

Numbering around 80 million, Millennials now represent the fastest-growing generation of consumers in North America.

Statistics tell us that those born between 1980 and 2000 are a tough sell – being location-unaffiliated and cash poor means they’ve been written off as a generation of renters. But don’t be fooled: young people are more eager to get on the property ladder than you might think. In fact, Millennials now account for one in three home buyers. That figure is set to explode as we edge into the next decade.

What is true, is that Millennials have different attitudes about home buying than any other generation of home buyer. So, while a Generation Xer might value stability and look for a home they can live in for a decade or more before

Homeowners often list their homes by themselves in the hope of saving thousands of dollars in commission. But is this actually a saving?

The term For Sale by Owner (FSBO) is quite self-explanatory. It describes the process in which an owner has made the decision to sell their own home. Homeowners usually decide to pursue this route in the hope of saving money in real estate commission. But is this initial commission saving actually a saving? There are myths and misconceptions about selling your own home.

Although it is possible to sell your own home and save on real estate commissions, there can be obstacles associated with this personal undertaking.

• Pricing/savings. Can the initial attraction of saving on commission mean underselling

If you’re selling a home, you’ll want the best possible representation.

Buying a home is a big step, but then again, so is selling a property. The most important thing when listing a home is finding the right real estate agent to get you the most money possible and ensure a smooth, stress-free process.

Before You Start

First off all sellers should take a look at the Working with a REALTOR® brochure, available on the BC Real Estate Association website (bcrea.bc.ca). This is a great introduction to what a certified REALTOR® does, what their legal and fiduciary duties are, and how you can best work with one.

Interviewing Agents

To ensure your agent is the right fit for you, sellers should interview one or more agents before signing an

Owner Financing good or bad?

It would seem a bit counter intuitive for someone to allow a buyer to pay over time for their property. After all, wouldn’t it be better to get all the money in one go thereby requiring the buyer to get financing from a bank? Well, sometimes it’s more lucrative for the seller if they can make it work to offer financing. As always TAKE ADVICE when it comes to anything to do with finance and assets. This is a huge undertaking for anyone to make and without the proper fiscal and legal mechanisms in place could be a risk that you would not want to take. There are obviously good reasons to offer owner financing as detailed below.

1. Better Selling Price

In a buyer’s market, it can take a while for a property to sell,

Local real estate has proven to be an effective long-term wealth creator

By owning rental housing you get the added advantage of earning regular income from your investment.

Could stepping up now and getting into the rental property market be the right choice? If so, how can you help ensure it's a profitable venture?

Understand why you're buying

There are three main reasons people invest in rental property, and a lot depends on whether you're an investor or a speculator. If you're a speculator, timing is everything. When's the best time to invest in a rental property? Catch the market in an upswing and you might make money. But stretch your finances to buy in as the market peaks and you could lose. Do you want to bet on what housing