www.VancouverTDMortgage.com

We all know Vancouver market has been cooling down. However, when you look at the mortgage approvals and funding counts, it still shows a good outcome.

Some of it is due to increasing number of people applying for Home Equity Line of Credit. Again, most of them are using them to consolidate their existing loans.

Very smart move for the economic turn down period. Saving hundreds of dollars in interests is the way to go for sure. Even if you do not need the cash right away but want to weather the financial storm for next several months, it is worthwhile to look into equity built for your home.

They are referred as HELOC(Home Equity Line of Credit).

Currently, TD Canada Trust is offering HELOC up to 80% of your current home value. Yes, you need a job with secure income.

The rate is Prime + 1%. The prime is at 4% but it will most likely come down in a week or so.

So, check out what options you might have to cut down your monthly spending.

John Hahn

TD Canada Trust Mortgage Manager

www.VancouverTDmortgage.com

It helps to understand what goes into making the decision about your mortgage approval.

Here are the key things that lenders generally consider when looking at an application.

1. Capacity to Repay

a. Gross Debt Servicing Ratio (GDSR) <= 32%

b. Total Debt Servicing Ratio (TDSR) <= 40%

2. Credit History

3. Collateral (security): The property value you are purchasing

4. Net Worth: The difference between what you own (assets such as savings and real estate) and what you owe (liabilities such as credit card debt and loans)

These are the factors one will look at when they consider you are ready for the particular property or not.

For more detailed information, please visit www.VancouverTDmortgage.com

John Hahn
TD Canada Trust Mortgage Manager

Many builder sites are going under lot of pressure especially if they are building concrete based condos in Greater Vancouver area.

As we have seen on some occasions last several weeks, some of them had to stop constructing due to lack of funds and unsold units in many areas. Does it mean we will see more benefits as buyers? Absolutely, we will see more of incentives from builders to clear out the existing condos that are not spoken for.

Will there be more price coming down in the near future? Yes, it will. The question is how much they will bring down their prices. A lot of marketers are forecasting it will be around 10-15% decrease in pricing. BUT, the BIG But is a lot of them already lowered their prices to adjust the right pricing. The right pricing is where they can still profit from the existing sites without losing any money. Will there be lower pricing than now? May be May be not. We have to see from the builder prospective as well. If they cannot cover their basic cost and make enough margin to go on, they would rather sell the whole property to someone else rather than going through collecting money piece by piece.

My point? This might be a good time to shop around until it is too late that no builders are motivated.

If you have to lose a bit from your existing property to move into next one, you might want to consider better timing. However, if you are a first time buyer, this is the time to consider finding the right one. Once the price gets too cheap, the whole nation’s economy will be down the drain and we will see a turmoil like in the US. Which means, the guidelines will get tougher for those who want to get into the market for the first time.

So, get out there start shopping around the right home for yourselves!

John Hahn