Three new mortgage rules were announced including:

1. Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80%.
   • Effective March 18, 2011
   • This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
2. Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes.
   • Effective March 18, 2011
   • This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
3. Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs.
   • Effective April 18, 2011
   • This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Problems Associated with Remodeling a Home Without a Permit

In defense of pulling permits for a remodeling job, if you're flexible with your time and don't mind spending a few hundred more, it's generally a good idea to get a permit. And here are some of the problems that could come back to haunt a homeowner who moves forward on a remodel without a permit:

Non-permitted work might not be done correctly or to code.
Just because a homeowner hires a contractor doesn't mean the contractor will do the job correctly. In addition, there is typically more than one way to do a job, and all three of those could be wrong.

Homeowner's insurance might not cover a defect for non-permitted remodeling.
If a remodel was done incorrectly and something happens, say a hot wire slips out of a wire nut and a fire breaks out. The damage caused by that fire might not be covered by a homeowner's insurance policy if the improvement was finished without a permit.

City might require you to tear it out.
City code often requires that framing be inspected by the city prior to hanging drywall. To determine if studs were installed in a bathroom 16-inches on center, for example, a city inspector might make a homeowner tear out the walls. All the ceramic wall tiles would go with it.

City might assess penalties.
If a permit seems expensive, wait until you get a bill for the fines and penalties for failure to obtain a permit. The job permit could cost you triple or quadruple the amount of the original permit fee.

A home appraiser might not include an addition in the square footage.
If the appraiser does not include the added square footage in the appraisal, the home will probably appraise for much less. This means a seller might be turned down for a refinance. A buyer might not be able to get a loan to buy the home.

Problems faced when Remodeling a Home Without a Permit

If you think long term and don't mind spending a few hundred more, it's a good idea to get a permit. And here are some of the problems that could come back to haunt a homeowner who moves forward on a remodel without a permit:

• Non-permitted work might not be done correctly or to code.
  Just because a homeowner hires a contractor doesn't mean the contractor will do the job correctly. In addition, there is typically more than one way to do a job, and all three of those could be wrong.

   

• Homeowner's insurance might not cover a defect for non-permitted remodeling.
  If a remodel was done incorrectly and something happens, say a hot wire slips out of a wire nut and a fire breaks out. The damage caused by that fire might not be covered by a your insurance policy if the improvement was finished without a permit.

   

• City might require you to tear it out.
  City code often requires that framing be inspected by the city prior to hanging drywall. To determine if studs were installed in a bathroom 16-inches on center, for example, a city inspector might make a homeowner tear out the walls. All the ceramic wall tiles would go with it.

   

• City might assess penalties.
  If a permit seems expensive, wait until you get a bill for the fines and penalties for failure to obtain a permit. The job permit could cost you triple or quadruple the amount of the original permit fee.

   

• A home appraiser might not include an addition in the square footage.
  If the appraiser does not include the added square footage in the appraisal, the home will probably appraise for much less. This means a seller might be turned down for a refinance. A buyer might not be able to get a loan to buy the home.

BC Home Sales Above National Average

According to the statistics recently released by The Canadian Real Estate Association (CREA), national residential home sales climbed 4.6 per cent in October 2010 from September 2010. This resulted in a total of 35,714 homes changing hands in October. The national average was led by residential home sales in major markets like the Greater Toronto Area and the Greater Vancouver Area, which includes Surrey, BC.

Based on the CREA statistics The British Columbia Real Estate Association (BCREA) has recently reported that residential sales in the province of British Columbia increased by 2 percent in October from September 2010.

The national average price for homes sold in October 2010 was $343,747, up from $340,344, a 0.7 percent increase from the October 2009 numbers. In British Columbia the average residential home price climbed by 6 percent to $521,859 from $493,328.

“The continuation of low interest rates is supporting sales activity, which has been improving over the past few months in a number of major markets including Vancouver,” said Georges Pahud, President of the Canadian Real Estate Association.

This indicates this is the right time to BUY or SELL!

Seasons Greetings ,

I have come full circle for another year. In the holiday rush, I like to take a moment to count the many blessings that have come my way.

The gift of love, the gift of peace, the gift of joy - May these be yours too at this special time of year.  I sincerely thank you for your business during the past year and wish you a warm and blessed Holiday Season.

Kuljit Minhas

(Surrey, BC) – For the fifth consecutive month, sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) have remained stable with November’s figures showing a modest increase over October.“Consumers are responding to how prices have moderated in the last six months, in addition to the double dip in mortgage rates,” says Deanna Horn, Board president.

 “Buyers are optimistic because of the improved economic conditions, which is why we’re seeing consistency in homes sales in the Fraser Valley.”A total of 1,084 sales were processed on the Board’s MLS® in November, an increase of 7 per cent compared to 1,014 sales in October and a decrease of 29 per cent compared to 1,522 sales in November of last year.

 The Board received the fewest number of new listings this year to date with 1,773 new properties coming on stream in November, a 17 per cent decrease from October and a 15 per cent decrease compared to November 2009. The Board finished November with 9,049 active listings, 5 per cent fewer than in October and an increase of 9 per cent compared to the 8,334 properties available in November 2009.

 Horn says, “It’s not unusual to see a dip in new listings at this time of year, however the level of home-buying interest, in particular for homes priced competitively, is stronger than we expected given we’re approaching the holiday season. That combination continues to have a stabilizing effect on home prices in the Fraser Valley.”

 The benchmark price for Fraser Valley detached homes in November was $504,848, down 0.2 per cent compared to October and 1.4 per cent higher compared to $497,697 in November 2009. The benchmark price of Fraser Valley townhouses in November was $319,623, a 0.2 per cent increase compared to October and a 1.2 per cent increase compared to November 2009 when it was $315,890.

 Year-over-year, the benchmark price of apartments increased 2.7 per cent going from $235,842 in November 2009 to $242,276 last month and 0.7 per cent higher compared to October 2010.

• Chances are your REALTOR can get you a higher price for your property than if you tried to sell it yourself.
  
• Statistics prove you will sell your home a lot faster when you use the services of a REALTOR.
  
• When you work with a member of the Fraser Valley Real Estate Board, you are really working with thousands of REALTORS who can advise all of their prospective customers and clients about your home through the Board's Multiple Listing Service.
  
• Your REALTOR can open doors to thousands of properties in the Fraser Valley alone through MLS and provide you with an up-to-the-minute computerized list of homes specifically suited to your needs.
  
• Your REALTOR knows your neighbourhood and assesses market conditions and property values on a daily basis.
  
• Your REALTOR has been educated on the complex laws and regulations in real estate and is trained to put together a legally binding contract.
  
• Negotiating price is an art. Your REALTOR will negotiate objectively in order to get the best possible price for your home.
  
• REALTORS are on call and available seven days a week to show your home.
  
• REALTORS have the skills and resources to market your home effectively.
  
• Your REALTOR is aware of the many options available for financing the sale, and has the latest information on mortgages.

If you are serious about selling your home, then you should consider using the experts. REALTORS are real estate marketing specialists. Let them deliver the professional service you deserve.

• Chances are your REALTOR can get you a higher price for your property than if you tried to sell it yourself.
  
• Statistics prove you will sell your home a lot faster when you use the services of a REALTOR.
  
• When you work with a member of the Fraser Valley Real Estate Board, you are really working with thousands of REALTORS who can advise all of their prospective customers and clients about your home through the Board's Multiple Listing Service.
  
• Your REALTOR can open doors to thousands of properties in the Fraser Valley alone through MLS and provide you with an up-to-the-minute computerized list of homes specifically suited to your needs.
  
• Your REALTOR knows your neighbourhood and assesses market conditions and property values on a daily basis.
  
• Your REALTOR has been educated on the complex laws and regulations in real estate and is trained to put together a legally binding contract.
  
• Negotiating price is an art. Your REALTOR will negotiate objectively in order to get the best possible price for your home.
  
• REALTORS are on call and available seven days a week to show your home.
  
• REALTORS have the skills and resources to market your home effectively.
  
• Your REALTOR is aware of the many options available for financing the sale, and has the latest information on mortgages.

If you are serious about selling your home, then you should consider using the experts. REALTORS are real estate marketing specialists. Let them deliver the professional service you deserve.