Ruby Cheung Mortgages Happy Holidays Newsletter December 2016 Edition No.5

Foreclosures

Dec Abbotsford Attached
Dec Abbotsford Detached
Dec Burnaby Attached
Dec Burnaby Detached
Dec Chilliwack Attached
Dec Chilliwack Detached
Dec Coquitlam Attached
Dec Langley Attached
Dec Langley Detached
Dec Mission Detached
Dec New Westminster Attached
Dec Pitt Meadows Detached
Dec Richmond Attached
Dec Surrey Attached
Dec Surrey Detached
Dec Vancouver Attached
Dec Vancouver Detached

Above is a list of foreclosures in the Lower Mainland.There are some great deals to be had for either your own home or as a rental property.  Check them out at the links above.

Rates Have Been Rising

In the last 2 months, the 5 year government bonds have climbed from 0.66% to 1.21%...that is a fairly substantial hike!  Government bonds are what fix rate mortgages are the most closely tied to.  When bonds go up...fix rates go up!  In early November we had 5 year fix rate as low as 2.24%...today most lenders have raised their 5 year fix in the 2.75%-2.85% range.  We still have one lender offering 2.59 %, but likely not for very long.  Call me if you want to discuss your options.

Why I Don't Care About Rates

The most money I've seen made in real estate is in this order:

1. Number of properties owned

2. Value of each property

3. Tax structure

4. Rate

If you focus on rate, you can get restricted to a lender that will not allow you to buy more properties + limit your access to the equity when your property goes up in value.

The problem with a $200k property is when it goes up in value by 10%, you make $20k.  If you have a $2 million dollar property and it goes up 10%, you make $200k.  The questions becomes what lender will lend you the most amount of money?   

If you are employed than tax structures are generally limited.  If you are a sole proprietor you have some options.  If you have an operating company, than sky is the limit with what you can do.    

For example, I have a client who should be claiming $600k income to qualify.  Right now, I'm getting an approval based on $100k only.  This is due to how banks look at operating companies.  

In order to do all of the above, it all comes down to how you structure your lenders + how you structure your income.