Happy New Year 2017 $$$$$$$Kung Hey Fat Choi

2016 Real Estate / Mortgage Year in Review

1.  Spring in Vancouver the Government imposed a restriction on the assignment of contracts for resale properties,

2. To qualify for home owners mortgage insurance a  down payment increase for properties over $500K. 5% down payment up to $500K and 10% down payment up to $1M maximum insured by Canada Mortgage  and Housing Corporation (CMHC).

3. The introduction of a 15% foreign buyers Tax implemented in August 2016                                Amended Jan 30 2017:                     Christy Clark says levy will be lifted fo those have a work permit and pay taxes in BC.

4. Federal mortgage rule changes in October  created a stress test for buyers with less than 20% down payment. Variable rate mortgages already must qualify at the Bank of Canada interest rate. Now fixed rate mortgages must also qualify at the higher Bank of Canada rate meaning less borrowing power for the consumer.

5. In the fall, the city of Vancouver introduced the Empty Home Tax (affecting investors) Effective Jan 1 2017, subject to a tax of 1% of the property's assessed value.

6. December the BC government announced a 5% first-time buyer down payment,     interest free and payment free loan for 5 years which took effect on January 16   2017.

The BC Home Partnership program will meet the buyer's contribution up to 5% of the home's purchase price, to a maximum purchase price of $750 000.

Forecast for 2017 More regulation to follow

The government says it plans to shift some of the risk of defaults against insured mortgages to banks and other lenders.

Ottawa says it's shouldering 100 percent of the cost of a defaulted mortgage is "unique" in the world.

How the government plans to share some of the risk with lenders remains to be seen.