Todays news from the Canadian Real Estate Association

Today, the government announced its intent to raise the minimum down payment requirements on homes valued over $500,000. Requirements will remain at 5 per cent down payment for homes under 500,000. Any amount over $500,000 will require a 10 per cent down payment. For example a $700,000 home will require a $45,000 down payment, 5 per cent on $500,000 and 10 per cent down on the remaining $200,000. The announced changes will take effect on February 15, 2016.

The government cites its desire to “contain risks in the housing market” as the reason for its decision.

As you know, the issue of an increase to minimum down payments is something CREA has effectively and successfully fought against since

Mortgage insurance a must for those with high-ratio loans

Hot markets and cold feet might keep some people out of the housing market, but a lack of upfront cash doesn't have to be an obstacle. While it's long been the convention in the industry to start with a 20% down payment, the availability of mortgage default insurance means ownership is still possible with as little as 5% down, as long as the buyer meets industry standards of income and creditworthiness.

"What mortgage insurance allows people to do is to get into the market with today's prices, with today's low interest rates, once they have determined that home ownership is right for them," says Mary Stergiadis, principal for Ontario business development at Canada Mortgage and Housing

These are some of the most frequently asked questions by home buyers – questions that people in the Kamloops area are searching for answers right now! I hope that the responses can give you the answers to your questions..

What are the advantages of buying a home?

Owning a home is a great way to build equity, take control of your living situation, and invest in your family and community. One study found that homeowners also report a higher quality of life. Check out the other findings about the social benefits of home ownership in this info graphic from Pinterest.

How much home can I afford?

A good place to start is to estimate your monthly payments will be around 25% of your gross monthly income. That is a safe number that most lenders feel

Study after study suggests that Canadians are having a tough time paying off their mortgages, as debt levels continue to hit record levels year after year. Why?

Could it be that there are more opportunities to spend? Could it be that some people don't want to pay off their mortgages faster?

Or are some professionals advising alternate investment strategies, suggesting that paying off the mortgage is not the best financial strategy?

BIG MORTGAGES AFFECT RETIREMENT

Rebecca and Darcy are in their mid-50s and are starting to think about retirement planning; they would like to retire in the next five years.

One of their biggest hurdles is a $225,000 mortgage. Currently, their $2,200 monthly payment would have the mortgage paid off in 10 years.

Your house has a built-in garage and your car is safely tucked away from the elements. But is your family just as safe on the other side of the wall? The garage air may be seeping into your home without you knowing it.

Gases and other toxins
First of all, it’s important to realize that every time you start your vehicle and every time you park it back in the garage, it releases carbon monoxide, benzene vapours and a host of other chemical substances. These contaminants remain suspended in the air in the garage long after the engine has stopped running and the garage door has closed. In addition, they often combine with other vapours—e.g., from the lawn mower, snow blower or chain saw, or any container of paint, oil or fuel stored in the garage. If there

Home prices in British Columbia are growing rapidly, and more and more having kids is seen by many as a luxury.

Home prices in British Columbia are growing rapidly—particularly in Vancouver, where the average price is almost double that of the national average—and more and more, having kids is seen by many as a luxury rather than a given.

Almost two-thirds of families in this province—65%—say the cost of home ownership has had an impact on their ability to start or expand their families, according to the results of a RateSupermarket.ca poll.

The majority of families across Canada feel the same way, but the national average is nine percentage points lower at 56%.

“While it’s no surprise that kids are hard on the wallet…it is disheartening

Top 10 tips on how to be smart when decorating for the holidays

This week marked the official start to the holiday season (at least in my books). It’s full steam ahead from here on out.

I’m a sucker for the holidays, but I still think it’s important to be smart when it comes to yuletide decorations. Here are some dos and don’ts when getting into the spirit of things:

1. Do check older string lights for damage. Before climbing up the ladder, make sure every light is working and that the cords aren’t frayed in any spots. Cold weather can cause the wiring in string lights to become brittle, which makes it a lot easier for them to get damaged. The longer they stay out during the year, the chances of damage to lights and cords increases.

2. Do not

Rising sea levels are a growing threat to coastal real estate, according to a report in the Toronto Star.

Nationwide, as many as 28,000 homes could be underwater by 2050 – either temporarily, due to storm surges, or permanently, thanks to sea-level rise, the Star reported. And a recent report from Climate Central predicted that 737,000 Canadians would be affected by sea-level rise if average global temperatures rise by 2 degrees.

It’s not just the Maritimes that are at risk, the Star reported. Vancouver’s climate adaption strategy has estimated that $25 billion worth of real estate is threatened by sea-level rise this century – and that’s not even counting city infrastructure. Making improvements to dikes along the British Columbia coast could run up

How to Do Your Own Yearly Home Inspection

Before you buy a home, it’s always a good idea to get a professional home inspector—but that shouldn’t be the only time you give your home a thorough look. Here’s a checklist of what to look for when performing a yearly visual inspection on your own home, or one you are considering buying.

A professional home inspection should not be skipped when buying a property. But when you first visit the house, you can also do your own visual inspection so you can watch for certain trouble spots. Even after you buy the house, doing this at least once a year will catch most issues before they become major problems.

You’ll need a pair of binoculars, flashlight, gloves, screwdriver, notepad and pen, and a camera to

Third of investors unprepared for buying process

It is a cardinal sin for investors not to be prepared or knowledgeable about the home buying process, but new figures point out that a third (32 per cent) of first-time investors admit to just that.

The survey, published by the Real Estate Council of Ontario (RECO), also found that 26 per cent of investors wished they had a better grasp of the buying process, 21 per cent wished they had looked at more properties and 14 per cent wished they had a better understanding of the contracts involved.

Other findings include:

• 43 per cent said there were sections of the real estate contract when they bought or sold a home that they did not fully understand.
• 36 per cent mistakenly think that after