November Founder’s Message
Canadians have seen historically low interest rates for the past two years. This is about to change. The Bank of Canada hinted this month that it will be raising interest rates as soon as the April-to-June quarter of 2022.
This will make it more expensive to borrow and tends to cool off economic activity, which helps manage inflation. These forecasts have implications for current and prospective borrowers, including homebuyers and current mortgage holders. Rate increases will influence the cost of loans and credit with variable interest rates, such as variable rate mortgages and most lines of credit.
Now is the time to take advantage of pre-approvals as you don’t want to miss out on the current rock bottom low rates. Rate holds freeze mortgage rates for up to 120 days, so you want to secure a fixed rate before the era of low interest rates comes to an end.
If you currently have a variable mortgage, take time to recalculate your payment using various scenarios to ensure you’re prepared for the anticipated increases. If you’re thinking about buying a home, don’t delay getting pre-approved. Analysts are predicting the Bank of Canada’s short-term interest rates will rise anywhere between 1.75% and 3% by the end of 2023. In turn, variable mortgage rates will go up as well. Similarly, bond yields are forecasted to continue to increase throughout the year, which will cause fixed mortgage rates to rise.
Metro Vancouver’s real estate market remains strong and now is the ideal time to call our experienced Virani advisors to receive a free, in-depth comparative market analysis on your home. The Multiple Listing Service (MLS) home price index benchmark price for all detached homes in Metro Vancouver is $ 1,199,400, up 14.7% from October last year. Last month’s sales were 22.4% above the 10-year October sales average. It’s a great time to move up, purchase an investment property or enter the market. Rate hikes are going to make home prices more costly, so call us soon. We are here to help.
You may want to consider purchasing a pre-sale property as Royal Bank is currently offering excellent mortgage options for pre-sales that protect both buyers and sellers. They are guaranteeing a firm, long-term approval commitment, allowing buyers to get a final mortgage approval for up to four years while their home is under construction. This is extremely valuable if your employment or financial circumstances change. They can cap today’s rates for the length of a buyer’s mortgage approval. Buyers are also eligible for creditor insurance while under construction and premiums are only collected upon possession of your new home. This is excellent risk management and a critical element of purchasing a pre-sale.
In addition to this excellent mortgage program, there are many additional advantages to buying pre-sales. A major benefit is that you’re only required to put 5% to 10% down and incremental deposits of around 20% with the balance due upon completion. Less money is required up front while you build your home’s equity.
Virani is currently offering two distinctive pre-sale opportunities in Vancouver. Ole Scheering’s highly anticipated first residential offering in North America is coming very soon. Fifteen/Fifteen is now previewing at the sales gallery by appointment. Should you be interested in booking a private appointment, please contact our sales team at [email protected], or 604-695-1000. With over 65 unique floorplans, the architect considered every element of the living experience and meticulously crafted each residence to maximize light and space.
Lilibet is a collection of one-, two- and three-bedroom garden homes or townhomes right across the street from Queen Elizabeth Park. Nestled in a serene residential neighbourhood, Lilibet is only one block from vibrant Cambie Street and less than a ten-minute walk to dynamic Main Street. Currently, over 75% of the homes are sold, yet there are still two- and three-bedrooms available. The two-bedroom homes feature rooftop decks with almost 500 square feet of outdoor space.
Both Fifteen/Fifteen and Lilibet offer excellent options to buy now for the future. Our advisors are experts at facilitating pre-sales and providing you with priority access due to our long-standing relationships with major and local developers.
As our country continues to climb out of the pandemic, change is on the horizon. We have experienced the lowest rates in history and record-breaking sale highs in Metro Vancouver. With that said, rates are on the rise. Take time to consider your future real estate options. Our highly knowledgeable Virani advisors have exclusive V.I.P. access to pre-sale offerings and listings. We take pride in giving you the best advice and personalized service possible. Our goal has always been to empower you to make educated decisions that suit your individual needs. Collaboration is the key to success. Together we will take the guesswork out of the real estate process and help you achieve your goals in these changing times.