Your REALTOR®:
David Hale
May 2021
Real
Reputation For Results


How Does Rent-to-Own Work?
If you want to buy a home, one agreement option available is rent-to-own. Of course, not every homeowner is going to agree to it, and it comes with a set of pros and cons.
      The following is a breakdown of everything you should know about rent-to-own when it comes to buying a house.
      The Basics A rent-to-own purchase has appealing elements, but there are risks.
      Basically, when you enter into this type of contract, you agree that you’ll rent a property for a set period of time before you then gain ownership. The time you rent can be a few months to several years, dependent upon your
Mortgage Rates
Canada averages as of May 2021:



1 yr. closed: 1.84%
3 yr. closed: 1.54%
5 yr. closed: 1.68%
10 yr. closed: 2.99%


Source: www.ratehub.ca






individual can own the property, or a company might.
      The contract dictates that the seller will keep a certain amount of money from each
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Spring 2021 Real Estate Trends to Look For
     Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?
      Increasing Mortgage Rates It appears, depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, they were holding under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.
      The 30-year fixed-rate mortgage is anticipated to average 3.1% through the spring months, while it was averaging 2.9% during the first quarter of the year, according to Fannie



PMI - It’s Not a Bad Thing
     One of a lender’s main jobs is to evaluate risk. If a lender looks at a loan application, what is the risk in making a home loan? How’s the credit look? Can the borrowers comfortably afford the new monthly payment? Is the property going to be owner-occupied or will it be a rental? How much down payment is involved? All of these questions and more must be answered before a final approval can be issued. Certainly having good credit is a positive as is affordability. Lenders also view rental properties as a higher risk than an owner-occupied home, thus the higher interest rate and additional down payment for a rental. But the down payment can carry considerable weight. The more down payment a borrower comes to the table with, the less risk for the lender.
      It used to be that a minimum down payment could be 20 or 30% or more, depending upon the individual lender. Yet it’s obvious that kept a lot of folks out of a home, especially for first time

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A lukewarm spring comes to an end for the Victoria Real Estate market

 A total of 740 properties sold in the Victoria Real Estate Board region this June, 4.5 per cent more than the 708 properties sold in June 2018 but a 12.7 per cent decrease from May 2019. Sales of condominiums were down 6.1 per cent from June 2018 with 216 units sold. Sales of single family homes increased 10.4 per cent from June 2018 with 394 sold.

 "June has trended lower than May for the past few years and tends to signal the end of the active spring market," says Victoria Real Estate Board President Cheryl Woolley. "The summer months of July and August generally see less activity than the spring, as people's attention shifts to vacation and away from real estate. This year, we have seen slightly more sales compared to June of last year. We have also seen one hundred fewer new listings enter the market this year, which continues to make a challenging market for buyers who are hoping for more options."

 There were 3,040 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of June 2019, an increase of less than one per cent compared to the month of May and a 17.1 per cent increase from the 2,595 active listings for sale at the end of June 2018.  

 The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in June 2018 was $898,500. The benchmark value for the same home in June 2019 decreased by 4.3 per cent to $859,600, slightly less than May's value of $860,800. The MLS® HPI benchmark value for a condominium in the Victoria Core area in June 2018 was $509,000, while the benchmark value for the same condominium in June 2019 increased by 2.97 per cent to $524,100, higher than May's value of $519,300.

 "It is possible that some buyers are waiting for the federal government's new first-time home buyer incentive to roll out this September," adds President Woolley. "The program is intended to assist first time buyers with their down payment. It's hard to estimate how many local buyers may take advantage of the incentive, but because of the low threshold for maximum purchase price, the program may only help those in our area who seek to buy condos. This could mean a slight uplift in lower priced properties in the fall, if more buyers are enabled to enter the market. 

  If you are interested in our Shared Home Ownership program, check out the link to our events page.......

sharedhomeownershipvictoria.com/


  Daily News and Advice

Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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David Hale PREC
E-mail: davidraymondhale@gmail.com
Website: DavidHale.com
250-812-7277

Pemberton Holmes Realty
3354 Radiant Way
Victoria BC V9C 0H5


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