Rookie mistakes to avoid when buying a home

The Star-They’re often heedless, emotional, rigid and, even worse, uninformed.

Experts say they see the same rookie mistakes in first-time homebuyers who are entering the housing fray: they don’t do their research, underestimate their finances, and let their emotions carry them away.

But with falling house sales and declining prices in the GTA, first-time buyers may find that market conditions are currently in their favour.

“We’re moving towards a balanced market right now,” said Mark Salerno, GTA district manager at the Canadian Mortgage and Housing Corporation (CMHC). “Because the pace of sales has slowed, houses remain listed for longer, which gives people more time to do research, and do their homework without any pressure…”

Rookie mistakes to avoid when buying a home – thestar.com

Victoria real-estate sales fall 36 per cent, most in B.C.

Times Colonist-  People looking to buy a home in B.C. are finding a buyer’s market with rising inventories and declining sales putting home-hunters more in control.

Across B.C. in June, realtors recorded 7,722 sales through the realtor-controlled Multiple Listing Service which was down 22.5 per cent from the same month in 2009, the period when biggest markets were just heating back up.

Active listings in inventory, in the meantime, climbed almost 21 per cent to hit 59,232 units in June, which equaled a 9.3-month supply based on the pace of sales, Cameron Muir, the association’s chief economist said.

Muir said the key influences in June were simply an extension of the ones that have dampened demand since they took hold in April: tougher qualifying rules for some mortgages, particularly for first-time buyers and those seeking secondary suites and a shift in long-term mortgage rates…

Victoria real-estate sales fall 36 per cent, most in B.C.

Loophole may help banks to lend to first-time buyers

Financial Post- There is a small loophole in the new federal mortgage rules that could make it easier for the banks to lend out money to first-time buyers.

The federal government announced last month new requirements for anyone borrowing money for a house and needing mortgage insurance. If you have less than a 20% down payment and are borrowing from a financial institution covered by the Bank Act, you have to take out mortgage default insurance, which ensures the banks are covered for any losses resulting from payment defaults.

For principal residences, the new rules force consumers to qualify for a loan based on being able to make payments on a five-year fixed-rate mortgage, which has a much higher interest rate than variable mortgages, now as low 1.85%…

Loophole may help banks to lend to first-time buyers

Ottawa toughens mortgage rules

Vancouver Sun- Amid warnings about "reckless" housing speculation and overextended homebuyers, Finance Minister Jim Flaherty said Tuesday the federal government would make it tougher for people to get a mortgage.

He said at a Tuesday morning media conference that Ottawa would require all borrowers meet standards for a five-year fixed-rate mortgage, even if the buyer wants a variable rate mortgage. This measure would apply to all first-time buyers. Homeowners with insured mortgages are not affected, unless they choose at a later date to extend the amortization or look to refinance.

Other rule changes unveiled would affect people looking to refinance their mortgages — lowering the maximum amount that can be withdrawn to 90% from 95% — and place a 20% minimum down payment for government-backed mortgage insurance on non-owner-occupied properties. This would affect people looking to buy condo units or duplexes for rental income. Previously, only a 5% down payment was required…

Ottawa toughens mortgage rules

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