Vancouver Real Estate

2018 Mortgage Rules

By | Abana Mortgages, Industry Update, Mortgage News, Vancouver Real Estate

New mortgage rules coming into effect as of Jan 1st, 2018 are a seismic policy shift and is expected to hit the banks’ earnings in a substantial way. Meanwhile, none of the big 6 banks are raising any alarms. Why?

The federal government in the past 2 years has systematically and gradually choked off competitions for the big 6 banks by severely limiting access to capital for non-bank mono line lenders, forcing them to close down shop or merge with the big banks.

The latest set of rules will mean consumers facing renewals will not be able to shop for rates as they will be effectively stuck with their current lender or face much tougher qualification if they were looking to switch for a better rate.

So, while the big 6’s mortgage origination may take a hit with these rules, their retention rates will certainly rise significantly as consumers no longer have a choice and what they may lose on loan origination growth they will more than make up by taking market share from mono lines who no longer can compete.

UDI Report

By | Industry Update, Vancouver Real Estate

A new report issued by the Urban Development Institute has found that released and unsold inventory, i.e. the supply of pre-sale of condo’s in the Metro Vancouver has reached its lowest level since 2010.

The number of move-in ready concrete condominiums  in the second quarter was reported at only 23 units across Metro Vancouver.  It is our view that the continued low levels of inventory over the course the next 12-18 months will further exacerbate the current upward movement in average prices. Pre-sale market will remain robust and the average prices/SF will be breaking new records in the months to come. This further validates our strategy to divert attention from single family market and invest in the multi-family space as we predicted that the lowered affordability metrics and low inventory of condos will create opportunities in the attached market. 3000 Henry is an prime example of one of Abana’s latest acquisitions consistent with this strategy and has already proven to be a stellar acquisition with above industry ROI.

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