September 2008 Newsletter

Welcome to Squamish Rocks Realtors E-News letter
New Foundations

The news article below outlines the new Government CMHC guidelines to take effect on October 15, 2008 in an effort to protect the Cana- dian housing market. Basically, they are cutting back on a few of their programs, including elimi- nating 100% financing (reducing back to a max of 95%), and a reducing to a maximum 35 year amortization (reduced from 40 years) which may affect some buyers, but certainly not all.

The positives? The majority of buyers want to put at least 5% down, so the elimination of the 100% financing may not be applicable to a lot of them anyway. Also, many try for the 25 year amortization but opt for a 40 year to qualify, so decreasing to a 35 year only makes a difference of about $85 per month on the monthly payment for a $400,000 mortgage

Ottawa, July 9, 2008 2008-051

Government of Canada Moves to Protect, Strengthen Canadian Housing Market

See Related document: Backgrounder

The Government of Canada today announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include: *Fixing the maximum amortization period for new government-backed mortgages to 35 years; *Requiring a minimum down payment of five per cent for new government-backed mortgages; *Establishing a consistent minimum credit score requirement; and introducing new loan documentation standards.

Today's announcement marks a responsible and measured approach by the Government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada.

The new limits are planned to take effect October 15, 2008. This would allow existing mortgage pre-approvals with the common 90-day duration to be used or expire. Certain exceptions would also be permitted after October 15. The Government will work closely with all stakeholders to ensure timely and effective implementation of these measures.

As these measures relate only to new, government-backed insured mortgages, Canadians who already hold mortgages will not be affected by this announcement.

The measures announced today will build on the strength of Canada's housing market. According to the International Monetary Fund, the increase in house prices in Canada is based on sound economic factors such as low interest rates, rising incomes and a growing population. A recent Statistics Canada report concluded that home ownership is at record levels, with over two-thirds of Canadians owning their own home.

Mortgage arrears (overdue mortgage payments) have also remained low. In recent years, the percentage of mortgages in arrears for three months or more continues to be at low levels not seen since 1990.

Community News

HOUSE PRICES PLATEAU

Following a trend thru out Greater Vancouver property values are leveling. The new trend does not mean housing prices will drop dramatically. Just over priced homes will have to re-adjust to current market con- ditions of today. We are now entering into a much needed .Balanced Normal Market.

Last year bench mark priced of detached homes in Squamish were valued at $480,000 this year only a slight increase at $489,000