Vernon House Finder

Shawna Sidhu

Should I Get a Home Inspection?

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Home Inspector Experts modern

 

Should I get a Home Inspection?

We’re seeing a trend right now in the real estate world, being that it is currently a busy sellers market, many homeowners are receiving multiple offers for their home. I recently had one of my clients ask me if leaving the home inspection out of their offer would make it more appealing to the Seller. Short answer is yes! Of course the seller is going to be attracted to such an offer, its one less thing that could potentially wrong with the transaction.

Is it in the buyer’s best interest? ABSOLUTELY NOT!

For example, one of my past clients was in the process of purchasing a home, and initially was not interested in doing a home inspection. However, after we had an in-depth discussion to weigh the options of having the inspection done, they decided to go ahead with it. Thank goodness they did! The home inspector found mould growing in the attic from years of poor ventilation, and upon consulting professionals about the clean up, it turned out to be a $10,000 fix. Needless to say, the buyer made the right decision on doing a home inspection.

On another note, if you’re thinking of listing your home for sale, doing a pre-list inspection is a great idea as well. If you are going to sell one of your biggest assets do you want to leave any money on the table? Probably not, so why not have an inspection done prior to putting your home on the market and address any issues that arise. I have seen small fixes add up to costing the client a lot of money, which in turn adds more stress to the sale process and takes up valuable time! Buying and selling homes is stressful for everyone, but by addressing as many of the potential concerns with your home as possible before listing, the process can go much more smoothly. This also gives you the advantage of having a better understanding of your home value, so if you’re not in a position to potentially fix the issues with the home, you can decide to list your home as is, disclosing the issues it has and pricing it accordingly.

There is a lot to consider when listing your home on the market, especially if you’re a first-time seller. If you would like any more information on home inspections or listing your home in our current market, feel free to get in touch with me anytime!

The BC Home Partnership Program

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First Time Home Buyer’s Program

There is exciting news for anyone who is looking to get into the real estate market for the first time. The government of British Columbia has rolled out an incentive program “BC Home Partnership Program” which would help to make it easier for first time home buyers to qualify for their first home.

How does it work?

Essentially the BC Home Partnership Program is available to first time home buyers who have less than the required down payment when purchasing their first home. The government of BC has agreed to issue loans to help first time home buyers meet the down payment requirements. The loan has a twenty five year term, and would be registered as a second mortgage on your home. Furthermore the loan is interest and payment free for the first five years and if you choose to make installments in this time frame, there are no penalties for early repayment.

What is the qualification criteria?

According to BC Housing the requirements are listed as:

  • Be a Canadian citizen or permanent resident for the last five years
  • Have lived in British Columbia for at least the full 12 months preceding your application
  • Be a first-time homebuyer who has not owned an interest in a principal residence anywhere in the world at any time and has never received a first-time homebuyers’ exemption or refund
  • Purchase a home that is $750,000 or less.
  • Be eligible for a high-ratio insured first mortgage for the home
  • The combined, gross household income of all individuals on the title must not exceed $150,000.
  • The home being purchased must be used as the principal residence of all individuals on the title for the five years after purchasing.

(Reference: BC Home Partnership Program Information)

What supporting documents are required for an application?

  • Proof of Canadian status (Birth Certificate, permanent resident card, or certificate of Canadian citizenship)
  • Photo identification (ID, Drivers License, or Passport)
  • Proof of income (Notice of Assessment)
  • Mortgage pre-approval

To apply, please visit: BC Housing

For more information on the program and whether it can help your family, feel free to get in touch with me today!

Real Estate

 

Understanding the Changes to Mortgage Qualifications

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The world of Real Estate is ever changing, sometimes its hard to keep up with everything that is going on. Today I thought I’d write a post to outline the recent changes to qualifying for a mortgage in Canada, considering the huge impact it could have on Canadian home buyers. In my next Blog post we will explore some of the recent incentives put in place to combat the new stricter guidelines.

To qualify to purchase a home in Canada, you must meet the following criteria:

  • The home must be located in Canada
  • You must have at least twenty percent of the total home value on hand to be used as a down payment for the home
  • If you do not have twenty percent you can apply through Genworth or CMHC (which are Canadian providers that insure higher risk mortgages) but they require that buyers come up with at least five percent of the total home value to qualify.

Additionally the following rules apply when applying for an insured high risk mortgage

  1. As mentioned above a minimum down payment of five percent which applies to homes valued at five hundred thousand or less. If the purchase price is over five hundred thousand, then the minimum down payment becomes five percent for the first five hundred thousand dollars and then ten percent on the remaining balance up to a one million dollar maximum purchase price.
  1. Your total monthly housing costs, (which includes your principal, interest, property taxes, heating, and if applicable fifty percent of condo fees or leasing costs) should be no more than thirty two percent of gross household income.
  1. In addition, your total debt load should be no more than forty percent of your gross household income.
  1. The “Stress Test” which is required to all home buyers (whether you have the twenty percent down payment or not) states that you must not only qualify for a mortgage at the agreed upon interest rate with your lender but you must also be able to make your payments at the bank of Canada’s five year posted interest rate. This is for your protection should interest rates rise over the course of your mortgage repayment.

**There may be other requirements that are applicable in specific circumstances and requirements are subject to change at any time.**

You can review the guidelines at: Finance Canada or Canadian Mortgage & Housing Corporation

If you’d like more information feel free to contact me anytime.

I would be happy to discuss any questions or concerns you may have regarding these changes to home buying.

Get in Touch

Office: 250-503-3461
Cell: 250-558-7333
Fax: 250-549-7007
Toll Free: 1-800-667-2040
Email: [email protected]

Opening Your Door to the Okanagan!

Shawna Sidhu Vernon House Finder logoWorking with an experienced REALTOR® gives you professional service, in an informative stress free environment! I would love to help you fulfill all your real estate goals and dreams. Whether you’re a first-time home buyer or have been around the block a few times, I respect that this will likely be one of the largest investments that you and your family make. As a life-long resident here, I am excited that you have chosen to call the beautiful Okanagan Valley your home, and would love to help you find the perfect place to settle in!

Shawna Sidhu

Personal Real Estate Corporation

RE/MAX Vernon

5603 27th Street, Vernon, BC V1T 8Z5