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Canadas COVID-19 Economic Response Plan

It can be overwhelming to determine what you can apply for and where to start. Here’s Canada’s COVID-19 Economic Response Plan with links to applications and further information.

Support for individuals and families

Support for people facing unemployment

Support for people who are sick, quarantined, or in directed self-isolation

Support for people who are unable to work

Support for people who need it most

Support for seniors

Support for students and recent graduates

Support for youth

Support to businesses

Avoiding layoffs

Access to credit

Support for farmers

Supporting financial stability

More flexibility

If you are facing financial hardship due to COVID-19 there are resources available to you. If you are still having trouble determining what those resources are in your specific circumstance, please don’t hesitate to reach out to me for help: 604 808 3797

Mortgage stress test changes suspended indefinitely

In my last blog post, I highlighted the changes coming to the mortgage stress test. These changes were due to come into effect by April 6th, 2020. The Superintendent of Financial Institutions (OFSI) has announced these changes have been put on hold indefinitely.

This comes on the heels of the Bank of Canada’s emergency interest-rate cut on March 13th of 50 basis points, the second such cut in response to COVID-19. The new lower interest rates may have a similar effect that the planned stress test relaxation was intended for which may be the reason the OFSI has announced the suspension.

This rate cut has reduced the Bank of Canada’s lending rate to 0.75 per cent, the lowest since the global financial crisis in 2008.

Housing sales in Metro Vancouver climbed 44.9 per cent in February compared to the same month a year earlier and were up 36.9 percent from January. The composite benchmark price for a home is now $1.02 million, up 2.7 per cent from six months ago. These new rate cuts may help fuel an already heating-up housing market.

Whether you’re buying or selling real estate I’d love to help you navigate through these changes and help you obtain the best possible outcome. Please contact me if you have any questions or would like further clarification.

604 808 3797

– Dawar Zada PREC*

COVID-19 and Vancouver Real Estate | What you need to know

There are a lot of questions concerning how the COVID-19 virus is going to impact the Vancouver Real Estate market. Here’s what we know so far and what we can expect.

  • Interest Rates Have Come Down
    The Bank of Canada cutting key interest rates has led to drops in Canadian Mortgage Rates. As interest rates continue to come down purchasing power generally increases. This may result in higher real estate prices.

  • Changes in the Stress Test

    On April 6, 2020, changes to the benchmark rate used to determine the qualifying rate for insured mortgages (mortgages with less than a 20% down payment) will come into effect. The new benchmark calculation is more market-driven. If interest rates continue to fall in many cases buying power would increase. Some economists are predicting rate cuts later this year which could drop the median rate for the stress test even further.

  • How This is Going to Effect Real Estate

    The housing market was picking up before COVID-19 and has continued to gain momentum with prices continuing to rise. With improved accessibility in mortgage financing and a Spring market (which typically sees higher sales volume) right around the corner, the overall effects of COVID-19 on the housing market will most likely be minimal and short-lived.

According to Economist Helmut Pastrick concerning Vancouver Real Estate: “Though we have also had an oil price war develop recently that have hit the market quite hard. It should be temporary though; 2021 should have better economic outcomes. After a few months when the virus’s effects on the supply chain are felt less, things should pick up. Most people expect this to happen in the second half of 2020. There may even be a rebound of the market.”

With supply in listings remaining low and buyers having better access to improved mortgage rates, we don’t expect to see a big impact on housing prices.

This is a fluid situation that is continuing to change rapidly. I am always available to answer any questions or clarify the above points further. I will continue to keep you updated as more information becomes available.

604 808 3797 – Dawar Zada PREC*

Events & Activities Coming This Spring | Port Moody + Coquitlam

Spring is almost here! This year, the Vernal Equinox is expected to take place on either March 20th or 21st. Here’s a list of all the events and activities that are coming to Port Moody and Coquitlam in the next few weeks.

 

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