Holiday Greeting!

Tis the Season to be Jolly! So, I decided to change things up a little, and make you all a Holiday Video. This has been a great year, and I am extremely excited about 2012. I wish you all the best of the season and a very Happy New Year!

http://youtu.be/w6DZgTciKOc

All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com


And don't forget to check out our Facebook page at

www.facebook.com/JamieMoiMortgageTeam.

Breaking?

It's less than 2 weeks to Christmas and, as "shoppers rush home with their treasures", many people may be wondering how to get ahead in 2012. The cost of living is not going down and harder economic times can means that times are tight around the holidays. If you currently own a home, I may be able to save you hundreds of dollars every month by reorganizing your mortgage. Interest rates are the lowest they have been in history and that means there are opportunities to save money and get ahead. I can also teach you strategies for paying your mortgage off faster and easier than ever before. There is no obligation and my services are complimentary to you. Don't you at least deserve to find out if you can save hundreds of dollars a month?

Call me today to book a 15 minute phone conference to get yourself saving!

All the best!


Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com



And don't forget to check out our Facebook page at

www.facebook.com/JamieMoiMortgageTeam.

Purpose

The holidays are right around the corner and we are deep into the season of entertaining and being with friends and family. Hosting parties and being invited into the homes of others can often spark thoughts like "Boy, making this cheese ball sure would be easier if our kitchen had a island" or "Their powder room is beautiful. I wonder how much it would cost to upgrade our bathroom?" If during this holiday season you are tempted by the thoughts of home renovations, never fear! As a home equity specialist, I can help you to use the equity in your home to pay for home upgrades and debt consolidation. I have the most flexible products and best rates on the market and my services are complimentary to you because the banks pay me. Why wait to see about making your home your dream home? Call today to get started!


All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com

Well Being

If you are considering buying a home, or currently own a home and have a mortgage, the thought of being able to one day pay it off may seem like a distant dream. Owing several hundreds of thousands of dollars to the bank may mean you get to live in a nice home, but it can also mean that you will have payments for years to come. Taking advantage of low interest rates has never been more important than now! As the economy recovers over the upcoming years, learning how to get ahead and develop a strategy for decreasing your mortgage principal is significant to your overall financial well being. No one wants to retire with a mortgage!



I can show you 3 strategies to help you decrease your mortgage balance dramatically, and build your equity faster than ever!

All the best!


Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com



And don't forget to check out my Facebook page at

www.facebook.com/JamieMoiMortgageTeam.

Jump Start

If you have been sitting back through 2011 waiting to see if the real estate market was going to collapse, good news is here! Sales have officially increased since last year. We are expecting to see little to no growth next year and even a slight decline in the market, meaning that stability has finally set in. This is great news for people who are looking to get into the market, as I expect we will continue to see a buyers' market prevail especially over the next 4 months. With interest rates remaining at record lows, this is a perfect time to buy a home and get a good jump on paying down the principal.

If you are currently in a mortgage, and would like to know how you can get ahead and take advantage of the current great interest rates, give me a call. Even if we determine that refinancing your mortgage is not in your best interest, I can teach you 2 strategies to pay your mortgage off faster than before. This means that you can increase your equity dramatically! Don't miss out on paying your mortgage off faster while the rates are low!

All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultant for life
604-534-6504
jamiemoi@jamiemoi.com

And don't forget to check out our Facebook page at
www.facebook.com/JamieMoiMortgageTeam.

Plastic?

Only 40 sleeps until Christmas and it seems that the Bank of Canada celebrated by releasing plastic $100 bills into circulation yesterday. Banks would certainly prefer that we all use plastic for payments however, they were hoping it would be by way of debit and credit cards which they can charge user fees on. The $100 bill is just the beginning, $50 bills will be released in May and $20, $10 and $5 bills are scheduled to be available in 2013. With the release of these new bills, the Bank of Canada is showing that it understands that cash is still king and respecting that Canadians need a currency they can count on. The new polymer bill costs almost double what paper bills costs to produce at $0.19 however, they are also estimated to last 2.5 times longer. Paper bills will be slowly removed from circulation, so be prepared to tell your kids that "once upon a time" money was made of paper.

In mortgage news, interest rates are staying stable with only minor movements in fixed rates and variable discounts. With prime expected to stay low until 2013, it is unlikely that deep discounts will return any time soon to variable products.

If you are looking to buy your first home, tomorrow is the last day to register for the First Time Home Buyers Seminar and Tour happening on Sunday, November 20 from 1pm - 4pm in Langley. The tour will begin at the Sutton West Coast Realty office on Willowbrook drive where in a 45 minute seminar we will explain the ins and outs of buy a first home. This will be followed by a tour of available properties in the Langley/Clayton area. Please email me by Wednesday, November 16th at 9pm to register at jamiemoi@jamiemoi.com

All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultants for life
604-534-6504
jamiemoi@jamiemoi.com

And don't forget to check out our Facebook page at

www.facebook.com/JamieMoiMortgageTeam.

Movement

Happy Tuesday! It has been an exciting week in the office as it seems that consumer confidence is on the mend. With condos and town homes selling, there is some nice movement coming back into the market. There is also a little bit of movement in interest rates. Fixed rates seem to be holding stable and low and there are rumors that they may even come down slightly. Prime is stuck firmly where it is until the Bank of Canada meets again on Dec 6th. However, the discounts on variable rates are shrinking. Only a few months ago we were seeing variable rates at Prime less 0.75%, now most lenders are offering their variable rates at Prime or just slightly discounted.

With uncertainty in the market, many home owners are considering renovating rather than buying a new home. If this is something you have been considering, come out to the Greater Vancouver Home Builders Association Renovation Seminar on November 22. The details are in the article below and I will be attending as an exhibiter at the trade show from 5:30pm - 7:30pm. I would love to answer any questions you may have about using your home equity to create the renovations of your dreams.

If you don't own already, come out to the First Time Home Buyers Seminar and Tour I am co-hosting on November 20th. Learn all there is to know about buying a home and get to tour some available properties. The deadline for registrations Nov 16th. Further details are on the side panel of this newsletter.

If you have any questions or would like to learn more about how we can help you to save thousands of dollars on your mortgage every year, please let me know.

All the best!

Jamie Moi, AMP
Dominion Lending Centres - West Coast Mortgages
Your mortgage consultants for life
604-534-6504
jamiemoi@jamiemoi.com

And don't forget to check out our Facebook page at

www.facebook.com/JamieMoiMortgageTeam.

Bright Spots

It is like a yo-yo in the mortgage market these days as banks are changing their interest rates nearly daily. They cannot seems to decide where to leave fixed rates however, the good news, is that they have come down again this week. There seems to be some bright spots in the world of economics this week, as per my article below, and the US seems to be finally taking some pointers from our ladies and gentlemen in the Bank of Canada. The US Reserve has complimented Mark Carney and his team on their conditional commitment to keep interest rates low calling it "successful". This is good news that the Americans are looking to improve their monetary policy.

If you are in the Fraser Valley on November 1st, be sure to check out the Business Showcase and Mixer at the Langley Events Centre. Businesses from around the Fraser Valley will be on display from 2:30pm - 7:30pm with prizes and a cash bar available. This is a free event and you can RSVP at events@langleychamber.com. I had the privilege of helping to organize this event as part of my role on the Board of Directors for the Greater Langley Chamber of Commerce and I hope to see you all there!

Now is the time to qualify for more

The Bank of Canada has met and said that they are planning on leaving the Prime rate stable until well into 2012. This is awesome news for people with variable rate mortgages and lines of credit. But what about people with fixed rate mortgages? Well the time could never be better to get pre-approved to buy a new home. Low interest rates and flexible bank products make it easy for your clients to buy more home for their buck. Consider this, 3 years ago we could use 40 year amortizations, however, the interest rates were nearly 6%. In today’s market, we use a maximum of a 30 year amortization and because the rates are so low, clients can qualify for more. On a $300,000 mortgage, payments are now $295 LESS than they would have been just 3 years ago. That is a huge savings and means that clients can qualify to buy more. We offer no obligation consultations to anyone who is looking to see how much they can afford. In just 24 hours, we can inform a client of their purchasing power and hold rates for them for up to 4 month. You will know they are qualified, and they will be confident in their ability to buy their dream home!

Self employment and home financing

Don’t you love working for yourself? You work the hours you like, your income ceiling is immeasurable, and everyday you get to build the adventure that is your life. It’s the best of all worlds. That is, of course, until you try to qualify to buy a home. The bank tells you that because your accountant has written down your income, you don't qualify to buy the house you want. What a joke! You work hard to save a nice down payment and just because you don't want to fork a bunch of it over to the taxman, the bank declines your mortgage!
We can help! We have lenders and insurance companies that LOVE self employed borrowers. Rather than looking at what kind of income you claim, they look at the fact that you sustain yourself with your own business and that you have a down payment. The better your credit score, the less you have to put down and you can qualify for the best discounted rates on the market.
Don’t let the bank crush your dreams of home ownership. Know the numbers and let us help you build a strategy for owning your dream home faster!

To rent or to buy, that is the question

In today's market there are a lot of questions about whether renting or buying is better. Here is a little scenario about the differences. If a couple currently rents a 3 bedroom town home for $1500 per month, it is better for them to buy than to rent. Consider this, if they were to buy a $300,000 townhome and put a 5% down payment, their monthly payment would drop to $1345 per month and they would end up paying almost $30,000 down on the mortgage in 5 years. Even if the market were to not change at all, that is $30,000 of forced savings in the form of equity. If they were to continue renting, the couple would spend $90,000 and have nothing to show for it at the end of 5 years.
With interest rates inevitably rising in near future, this is the perfect time to secure a low interest rate for a home purchase. Lenders can hold rates for up to 4 months so that shopping for a new home can be easy. Knowing the numbers upfront saves everyone from stress and disappointment, and working with a mortgage broker is a free service! Call us today and we can have your clients pre-approved in less than 24 hours.

Property Purchase Tax

If you are a first time home buyer purchasing a home under $425,000 and have never owned real estate anywhere in the world, you are exempt from having to pay the Property Transfer Tax. The Property Transfer Tax, also known as the Property Purchase Tax, is a provincial tax charged on real estate at 1% of the first $100,000 of the home value, and 2% of the remaining value. For a $450,000 home purchase, the buyer will pay $7000 in tax. As soon as any person who has owned real estate before appears on the title, this tax is applicable. There are several lobbying parties looking to have the PTT reduced, because when the tax was originally was created in 1987 average home values were under $200,000 in Vancouver. They now average $760,000. Unfortunately, the tax which was meant to affect only 2% of the population now affects 88% of British Columbians, and is a major expense especially for move-up buyers.

Landlordship

While there are many roads to a comfortable retirement, there are many that say that their true fortunes have been built in real estate. I don’t mean the likes of Donald Trump style real estate but rather the more moderate, more conservative path of investing in rental properties. The beautiful thing about acquiring a property as a rental is that the tenants pay the mortgage off for you. Imagine holding a condo for 15 or 20 years, having the tenant pay off the mortgage and then discovering you have a clear title property that is generating money for you each month. Have a few such properties and this could mean thousands of dollars in revenue each month.
But the realms of landlordship are not always all fun and games, especially if you get lousy tenants. Here are a few tips from someone who knows about how to make the best of having a rental property.

1. Do proper checks on potential tenants
By enlisting the services of a rental management company, they can assist with showing the property, assessing tenant applications, running back checks and signing all leases and collecting post dated rent cheques. You may not need month to month management, however, for as little as half a month’s rent a management company can eliminate the stress of finding suitable tenants.
The other option is to have an open house to show your property and meet potential tenants. Ask those interested to complete a Tenancy Application which will offer you their contact information, employment information, a previous landlord reference name and number and permission to look at their credit bureau.
By having this information you can get an excellent snapshot of who you have as potential tenants. Do the reference and credit check! This will dramatically increase your chance of choosing a tenant who can and will pay their rent in full and on time each month.

2. Have the tenants sign a lease.
Although you may be willing to rent the property to your tenant on a month by month basis, a lease allows you to outline the rules of that arrangement. For example, can the tenants have pets or smoke in the property, how much notice must they give if they want to move out, how much is the damage deposit, what utilities are covered in the rent, how much is the rent and what storage lockers or parking stalls come with the property if applicable.

3. Know the Residential Tenancy Act of BC
You can find all the rules of having a rental property at http://www.rto.gov.bc.ca. Study this site, read the forms that are available to you and never ever do anything without conferring with the Act. Your tenants have rights, in fact, it can be argued they are more protected than the landlord but if you ever have a problem with a tenant you are better to play by the rules. Having your tenant sign a lease means you have their word they are also going to play by the rules you set out and protects you in writing if they do not.

The Sleep Factor

Few would argue with the perspective that real estate ownership is a keystone of growing personal wealth. In today’s market, we are seeing a stabilization of pricing and the pattern of interest rates is a hot question from week to week. As rates came down slightly over the past week, many young people are wondering when to get into the market and what kind of rates to consider. When buying a home to live in, I don’t believe there is a bad time to buy. I say this because owning a home is always better than renting. Why pay someone else’s mortgage? And the interest rate question is a personal choice. I work by a philosophy I call “The Sleep Factor”. When deciding between a fixed and variable rate mortgage consider how you feel about your monthly payment potentially changing with interest rate changes. Consider if you will be more comfortable knowing your payments will be the same each month or if you are willing to take a lower payment with the chance the payment may rise. Will you be up a night worrying about your interest rate? If the answer is yes, a variable rate is not worth the loss of sleep. Buy now, lock in and get some rest!

Housing update

I had the esteemed pleasure of hearing Charles King, Regional Manager, Market Analysis and Research & Information Transfer of the BC Region for Canada Mortgage and Housing Corporation speak for the Greater Vancouver Home Builders’ Association last week. He has some wonderful insights I would like to share. In the recent years we have seen the Lower Mainland develop into an international rather than a regional market, and as such, we saw an escalation of prices in the housing market. In 2009, however, immigration laws tightened and the threshold for entrepreneurial immigrant increased from $800,000 to $1.6 million. This decreased immigration and had a hand in the market stabilization.

In BC, 70 percent of residents are home owners and only 42% of them require mortgage financing. On average, BCers make more lump sum payments to their mortgage than the average Canadian and as such, use housing as a system of “forced savings”. Many home buyers see real estate as a viable investment strategy and according to CMHC, 46% of downtown Vancouver properties and 17%- 25% of Fraser Valley properties are held as investments.

Through 2011 we are expecting a moderate increase in the housing market of just 2%, and in 2012 CMHC foresees a 3% increase. Thankfully, the market in the Lower Mainland has stabilized or even improved over the last year. This is proven by the City of Vancouver approving laneway homes, similar to the coach home concept popular in the Valley. The US remains in a state of recession as over 18 million homes are vacant. Until this trend shifts, the housing market will see little recovery.

Property Taxes

Property Assessments have all come out for 2011. The assessed value of a home is it’s value based on taxation and not on market value. An assessment may indicate a home is worth $350,000, however, that does not mean the home will necessarily sell for this amount. A real estate agent or appraisal company should be contacted to advise about the market value of a home. If you own the home you live in, you are eligible for the Home Owner’s Grant which deducts $570 off your annual property tax bill. This grant must be claimed to the municipality; forms and information about claiming the grant are usually released in May or June of each year.

RRSPs and First Time Home Buyers

RRSP contributions are not only important to help secure one’s future but can also help with growth right now! Did you know that first time home buyers can use up to $25,000 from their RRSPs as a contribution to the down payment on their first home TAX FREE!?! This means a couple could access up to $50,000. Once these funds have been accessed they must be paid back within 15 years using yearly contributions. If you would like more information, go to www.cra.gc.ca and search “Home Buyer’s Plan”.

Banks increase fixed rates

While the Bank of Canada keeps the prime rate steady, individual lenders have decided to increase their fixed rates. This week TD, CIBC, RBC and several Credit Unions increased their 5 year rates by 0.25%. This is the first rate increase since the federal government’s announcement that insurance guidelines will tighten effective March 18, 2011. Rates remain competitive and it is expected that the market will see a slight incline through to mid-March as eager first time home buyers take advantage of 35 year amortizations and low interest rates. Buyers are still able to take advantage of minimal down payments of 5%, and products remain on the market offering buyers the option of zero down payment.

We Pay the Legal

Interest rates are extremely low, lenders are eager to lend, the market is heating up and we are offering you FREE legal services if you refinance an insured mortgage with the Jamie Moi Mortgage Team. Why not take advantage of your home equity while you can and refinance into a wonderful low interest rate to consolidate debts or pay for home renovations. Before March 18th, 2011, CMHC (the Canadian Mortgage and Housing Corporation) will allow mortgage refinances to 90% of the value of the home. If you refinance your insured mortgage, we will pay the legal costs! Call us to find out how!

New Mortgage Rules – What do they mean for you?

The Federal Government has spoken and decided that Canadians carry too much personal debt. As a result, they have mandated certain changes to CHMC (Canadian Mortgage and Housing Company) insurance. If you own a home or are looking to buy a new home, these changes may affect you. Here’s how…

If you are looking to buy a home you can still put just 5% down payment (in fact, with some lenders you can even put zero down) however, the longest amortization available through CMHC will be reduced from 35 years to 30 as of March 18th, 2011. What this means is that if you were looking to qualify for financing using a 35 year amortization, your purchasing power may be cut back using the new 30 year maximum amortization. Be sure to check with your mortgage broker about how to be pre-qualified and if these changes will affect you.

If you currently own a home and are considering refinancing your mortgage to consolidate debt, pay for renovations or get a better rate, the rules have changed on how much you can borrow. Until March 18th, 2011, clients are able to borrow up to 90% of the value of their home. With the new CMHC rules, a refinance can only go to 85% of the home’s value. What this means is that home equity will not be as accessible as it has been in the past.