North Vancouver Mortgage Broker Update/Forecast 2018
North Vancouver has experienced strong real estate growth across all sectors, with lower Lonsdale being one of the most sought after living regions – quieter and less busy when compared to downtown, but still accessible via the sea bus. With new mortgage changes being introduced in 2018 on both the provincial and federal level, mortgage brokers should be aware and understand these rules, and the direction real estate will most likely follow for the remainder of the year.
2018 Analyst Forecast: Slow for single family detached, strong town home/condo sales, strong refinancing
North Vancouver Pricing Index
Beginning in the summer of 2016, all North Vancouver mortgage brokers should be familiar with the suppression in listing value created as a direct result of the foreign buyers tax (15%, in select regions) – North Vancouver is included in the regions in which this buyers tax was implemented.
Adding to the turbulent year of 2018, we had a change of provincial government, and with the NDP in power (and holding voting control with the green coalition), we’ve experienced a number of new stressors, including a 1% home vacancy tax, a 2% education tax (for homes valued over $3M), and increasing with value thereafter, and the federal government limiting Canadian indebtedness by introducing new mortgage stress tests and hiking interest rates alike.
What does this mean for North Vancouver Mortgage Brokers?
For the most part, we expect it to be business as usual. All mortgage brokers should be familiar with the new federal government stress tests, and be able to analyze clients information, credit and earning information and pair appropriately with a lender. You should expect that gross lending amounts will be lower than 2017, and expect higher declines as the big 5 charter banks become increasingly particular. You should have a few alternative lenders on hand, and develop a working relationship as these are viable approval avenues.
You can learn more about the North Vancouver region, and read more about the benefits of working with a trusted North Vancouver Mortgage Broker.
Expected Deals for North Van Mortgage Brokers
You can expect to be processing less single family detached home applications, as single family detached homes in North Vancouver are out of reach for most buyers, and even if they are within reach, most buyers are reluctant to purchase a big ticket item in an uncertain real estate market. You can expect to see a lot of condo and town home purchases as this market is still red hot.
You should also expect many clients to take advantage of refinancing deals (as banks often offer snap deals to drum up business). In the month of May alone, two banks have already offered incredible lending discounts to help offset their slowing mortgage sales. With interest rates more likely to rise in the future, you can also expect (and should market to clients) to refinance now if they are up for renewal with in the next 1-2 years to lock in a new term before rates increase much further.
North Vancouver Developments Mortgage Brokers should be aware of
As a mortgage broker working in North Vancouver, developments (particularly condo) are sold fast and furious. If you are marketing to down sizers/first time buyers, you should be familiar with the following developments, including their pricing models/requirements. You should be particularly familiar with presell pricing models, as often a presell home can be secured for a small amount of upfront capital, and owe the balance at a much later date (allowing a larger window for financing approval).