Ask people this question and you will get a variety of answers.  Most home owners will say 10% is what you should put down. However, if you speak with your grandparents, they are likely to suggest that 20% is what you need for a down payment.

The truth is 5% is the minimum down payment that you can make on a home in Canada. If you are planning on buying a $200,000 home then you need $10,000.

It all can be explained by the creation of the Canadian Mortgage and Housing corporation (CMHC) by the Canadian government on January 1^st, 1946. Before this time, you needed to have 20% down payment to purchase a home . This made home ownership difficult for many Canadians. CMHC  was created to ease home ownership. This was done by offering mortgage default insurance. Basically what CMHC does is it guarantees that you will not default on your mortgage payments. If you do, they will reimburse the lender who gave you the mortgage up to 100% of what the homeowner borrowed. In return lenders allow you to purchase a home with a smaller down payment and a lower interest rate.

CMHC charges an insurance premium for this service to cover any losses that may occur from defaulted mortgages. This program was so successful that CMHC lowered the minimum down payment to 5% in the 1980’s.

However, if you have little credit history or some late payments in the past they may ask you to provide 10% instead of the tradition 5% if they feel there is a risk that you may default at some time.

You should also be aware that the more money you put down, the lower your monthly mortgage payments will be. You also can save thousands in mortgage default insurance premiums by putting 20% down.  At this time,  home buyers who put 5% down have to pay a fee of 4% to CMHC or one of the other mortgage default insurers to obtain home financing. On a $400,000 home this is close to $16,000.

If you can provide a 10% down payment the insurance premium falls to 3.10% and if you can provide 20% it drops to zero.  While 20% can seem like an impossible amount to save, you can use a combination of savings, a gift from family and/or a portion of your RRSP savings to achieve this figure. The best recommendation that I can make is to speak with your Dominion Lending Centres mortgage professional to discuss your options and where to start on your home buying adventure.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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Restaurateur and TV personality Vikram Vij on the joy of cooking—slowly—at home

The culinary landscape in North America is amply populated with chefs and personalities putting their spin on a style of cooking designed to get your attention. With the explosion of the foodie culture in recent years, cutting through the clutter would seem a near impossible task. But that’s exactly what a chef with humble beginnings from India has managed to do. Vikram Vij is one of Canada’s most celebrated chefs, ascending the culinary ladder by reaching into his Indian heritage. He opened Vij’s restaurant in Vancouver in 1994 to great acclaim and hasn’t looked back. He’s since opened three Indian restaurants and a fleet of food trucks and become an author and television personality, most notably taking a turn as a Dragon on CBC’s Dragons’ Den. Despite all the success and attention, Vij continues to focus on what he loves to do: cook. During an autumn tour of India, he took time out to speak to Our House magazine about food, fame and his future.

Our House: Where do you call home these days?
Vij: I live in Surrey, B.C., but as an Indian who came to Canada and who loves to travel and get culinary inspiration from around the world, I like to think I’m a global citizen!

I understand you’re in India, can you tell me a little about the purpose of the trip?
Every year I take a trip with some food fans, some of whom have been coming with me for years now, for a Vij’s Culinary Tour. We’ve visited India most often, but we’ve also been to places like Vietnam, Peru and South Africa. I love to experience not only different culinary cultures, but also to re-explore my own roots and to visit different parts of India to see what is being cooked – and how it’s being cooked – and to incorporate those methods into the food in my restaurants. That’s how I stay authentic, and it’s the best way to keep learning and to grow.

Describe how important cooking at home is, not just for yourself but for families and people in general?
I cannot say enough about eating together as a family, and having a home-cooked meal – and I’m a restaurateur! There are stats that show families who make time to eat together each night, who break bread together and talk, have fewer instances of crime, of drug addiction, and of broken homes. Now, that’s easy for me to say – working in the restaurant industry, we were hardly a “sit down for dinner at six o’clock” family. But we made a conscious effort to set aside breakfast time, and an evening each week when we knew we would all be together – and that means no cellphones at the table.

What advice would you give to someone who is afraid of or overwhelmed by the idea of learning how to cook?
I would say just try it. There are so many books out there that will teach you the basics, and if you get it wrong, so what? I don’t use recipes; I put in a few key ingredients that I want to use… then I add more, and then even more until I’m happy with what I’ve cooked. Baking is a science – so it’s hard to go freestyle with that… but cooking is love… and you should experiment and not be put off from trying.

What advice would you give to a young chef thinking about opening his or her own restaurant?
I would say it will be the hardest thing you will ever do. But it will also be the most rewarding. You need three things: the passion to follow your dream of opening a restaurant, an amazing team who will always have your back, and money – ideally lots of it!

Do you cook much at home, or leave it to your restaurants?
I love to cook at home and I love to be in my restaurants seeing other people enjoying their dinner with us. I don’t have my daughters at home to cook for anymore, so I can make what I want. But I like to take my time while I’m cooking. Being in the kitchen is my greatest pleasure, and it’s also my entertainment for the evening, and I don’t want to rush it.

You’ve cooked for celebrities and politicians. Is there someone or a group you haven’t cooked for that you would still like to?
There’s an expression: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” I’d like to teach people how to cook Indian food, and have it added to their repertoire of meals they cook for their family. I’d love to be an ambassador of Indian food in Canada, and I’d like to show as many Canadians as possible to not be daunted by Indian spices and recipes.

Describe your thoughts on the Canadian culinary scene. How do Canadians stack up against the rest of the world?
Canadian cuisine is incredible – and it’s getting better and better. We have the most amazing resources which create the best ingredients. We have fantastic meats and produce from our local farms, we’ve got really great wines, craft beers, gin and vodka, and on the east and west coasts, the seafood is second to none. When you’ve got those world-class resources, then you’re already on the international stage from a culinary perspective.

How does your typical day unfold?
There’s honestly no such thing as a typical day. They are all so different, and it depends on where I am. As much as possible, I get up early and go to yoga, then it’s either meetings and more meetings followed by service at one of the restaurants or, if I’m travelling, I’ll try and eat at someone else’s restaurant to see what they’re up to.

What do you make of the popularity of food shows and channels like the Food Network, and chefs as celebrities?
I think bringing cooking into the mainstream cannot be a bad thing, but I hate the term “celebrity chef,” because our main focus should always be the food, rather than fame. I’ve been involved in many TV shows myself and I’m grateful for the ability to bring an Indian presence there, and to highlight Indian cuisine to a wider audience.

You’ve written books, been on TV shows. Do you see yourself cooking and opening and running more restaurants for the years to come? What does the future hold?
The day I stop cooking is the day I give up on everything! Sure, I’d like to open more restaurants, but I also want to make sure the ones I have are the best they can possibly be and have the attention they deserve. I have two daughters, but I have three other children: Vij’s, Rangoli and My Shanti!

What is the one thing people might not know about you?
I’m known for working the room at my restaurants – but the reason I love to do that is because I originally wanted to be a Bollywood actor. I love to perform and to talk to people and I wanted to be a movie star, but my father said no son of his was going to be an actor, so I became a chef.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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When you purchase your home, there are 6 additional costs to account for. They include:

• Home Fire and Flood Insurance
• Title Insurance
• Legal Fees
• Adjustments
• Land Transfer Tax
• GST

Here’s an overview of what you can expect.

Home and Fire Insurance. Mortgage lenders will require a certificate of fire insurance to be in place by the time you take possession of your home. The amount required is generally at least the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size and extras being insured, as well as the insurance company and the municipality. Home insurance can vary anywhere from $400 per year for condos to $2,000 for large homes.

Title Insurance. This is a one-time fee of about $150 and it protects you against any issues, defects or fraud on your title. Your lawyer or notary helps you purchase this.

Legal Fees. Thirdly, you are required to pay legal fees. Your lawyer or notary will charge you anywhere from $700 to $1,000 to help with your purchase. There are also fees to register your title with the municipalities. All told, you’re looking at around $1,000 to 1,300, after tax.

Adjustments. An adjustment is a cost to you to pay the seller back for prepaying any property tax or condo fees on your behalf. Simply put, if you take possession in the middle of a month, the seller has already paid for the whole month and you must pay the seller back for what they’re not using.

Land transfer tax. Land transfer tax, or property transfer tax (PTT) as it’s known as in British Columbia, is a fee that is charged to you by the province. First-time home buyers are exempt from this fee if they are purchasing a property under $500,000. All home buyers are exempt if they are purchasing a new property under $750,000.

In British Columbia, the PTT is 1% on the first $200,000 of purchase and 2% thereafter. However, if the property being purchased is over $2,000,000, then it is 3% on any value over $2,000,000.

GST. GST is only paid on new construction purchases. GST is 5% on the purchase price. However, there is a partial GST rebate on properties under $450,000.

Please don’t hesitate to contact me your Dominion Lending Centres mortgage professional for your home financing and mortgage needs.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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The Canadian Mortgage and Housing Corporation (CMHC) is a corporation that most are semi-familiar with, but do not know what CMHC actually does.

CMHC is Canada’s authority on housing. They contribute to the stability of the housing market and the financial system. They also provide support for Canadians in housing need and offer objective housing research and advice to Canadian Governments, Consumers and the Housing Industry.

CMHC offers a variety of different services, all pertaining to Canadian Housing. These services include:

1. Policy and Research
One of CMHC’s cornerstone services is the provision of market analysis information, housing-related data and information, and key housing sector data and information. They are one of Canada’s leading sources of reliable and objective housing market analysis and information. Their research and activities support informed business decisions, policy development for governing bodies and housing program design and delivery.

2. Affordable Housing Measures
CMHC (on behalf of the Government of Canada) also is the primary funder for affordable housing endeavors across Canada. Each year, CMHC invests approximately 2 billion on behalf of the Canadian government to help provide safe, affordable, stable housing opportunities for each province and territory. CMHC oversees approximately 80% of the existing social portfolio administered by provinces and territories, and manages the remaining 20% independently to fund federally housing units such as housing cooperatives. They also work under the IAH (Investment in Affordable Housing) Act, which allows for cost-matching the federal investment to allow for new construction, renovation, homeowner assistance, rent supplements, shelter allowances, and more.

3. Consumer Assistance
The final key services that CMHC offers to Canadians is providing relevant, timely information that can be accessed and used by the public. On their website you can access detailed information on topics such as the:

• CMHC green building and renovation practices
• Homeowners How-To Guides
• Housing Related Research
• Homeowner grants and opportunities

4. Mortgage Loan Insurance
In addition to the above, CMHC is also the #1 provider of Mortgage Loan Insurance to Canadians. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment starting at 5%* – with interest rates comparable to those with a 20% down payment. In addition to CMHC, there are also 2 other primary mortgage loan insurance providers, Genworth Canada and Canada Guaranty.

CMHC strives to promote mortgage literacy and provide home buyers with in depth knowledge and tools to help them prepare to purchase a home.

Essentially, CMHC is the Canadian Government’s organization that seeks to inform and educate Canadians on the housing and mortgage industry. It reports to the Parliament of Canada through a Minister, governed by the Board of Directors. CMHC makes recommendations based on it’s data and surveys to advise and assist the government of Canada in making decisions that directly impact the mortgage and housing industry. For instance, the date and information provided by CMHC provided information that led to:

February 2016:
Minimum down payment rules changed to:

• Up to $500K – 5%
• Up to $1MM – 5% for the first $500K and 10% up to $1MM
• $1MM and greater requires 20% down (no mortgage insurance available)
  Exemption for BC Property Transfer Tax on NEW BUILDS regardless if one was a 1st time home buyer with a purchase price of 750K or less.

July 2016
Still fresh in our minds, the introduction of the foreign tax stating that an ADDITIONAL 15% Property Transfer Tax is applied for all non-residents or corporations that are not incorporated in Canada purchasing property in British Columbia.

October 17, 2016: STRESS TESTING
INSURED mortgages with less than 20% down Have to qualify at Bank of Canada 5 year posted rate.

January 1, 2018: B-20 GUIDELINE CHANGES
The new guidelines will require that all conventional mortgages (those with a down payment higher than 20%) will have to undergo stress testing. Stress testing means that the borrower would have to qualify at the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%

While CMHC does not implement or guide the mortgage/housing changes, they play an integral part in them. They provide the cornerstone of data that the provincial and federal governments use to determine updates, rules, and changes to help to regulate the industry. So, well we may not always like what the data indicates and implicates, it does serve to regulate and make the process of owning a home easier for Canadians. If you have any questions, feel free to contact me your local Dominion Lending Centres mortgage professional.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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The following is a summary of the choices available for clients when looking at the four different types of lending groups. Which one is best will all depend on who you are as a borrower, what your current situation is now, and what your situation will look like in the future.

Big Banks

Currently, mortgage brokers have access to TD Canada Trust and Scotiabank. These are especially appealing to first-time home buyers as it offers a sense of comfort knowing your mortgage is being dealt with a nationally recognized financial institution. TD offers very fast review of documents with the ability for collateral charges, multiple branch locations, and competitive privileges such as pre-payment abilities. Scotiabank is also an advantageous option for home owners as they have one of the most comprehensive and easy-to-use home equity lines of credit, referred to as their Scotia-Step. Being able to access a home equity line of credit (HELOC) and roll it into your mortgage offers simplicity and efficient methods of borrowing for home owners. The draw back with both banks is that they are in fact chartered banks. When a client decides to use them for fixed rate mortgages, specifically the 5-year terms, they can potentially be on the hook for penalties north of $10,000 due to breaking their mortgage early. Career changes, moving from different neighborhoods or cities, upgrading or downgrading home sizes, marital issues, these are all reason why someone may need to break their mortgage early and being in a long term fixed rate mortgage with a chartered bank can be unpleasant.

Credit Unions

One of the biggest benefits of Credit Unions, such as Westminster Savings, or Coast Capital to name a few, is they are not federally regulated, they are provincially regulated. They are not required to adopt federal mortgage rule changes unless they want to. This can be an extreme benefit to those considering rental properties, those with unique income/employment situations, or complex transactions that chartered banks do not or cannot work with. Some of the negative attributes are, however, a reputation for slow review times of documents and mortgage applications, as well as portability. If you work for a company or in an industry that is known for relocation and re-assignment across provinces, you will pay a penalty to a Credit Union every time. This is something that is likely not to happen when working with Charted Banks or Monoline Lenders as they will have more flexibility in allowing you to port your mortgage to a new property in other provinces.

Monoline Lenders

Monoline Lenders are supported by mortgage brokers, and in turn, mortgage brokers are supported by Monoline Lenders. You cannot access mortgage products that a Monoline Lender offers without using a broker as they typically do not have physical branches or locations. They are funded by private investors dealing only in mortgage transactions, allowing their products to be more customized based on the investors’ risk tolerance. Extremely low interest rates, very competitive privileges with pre-payment and portability, fast turnaround-times, and the best part, significantly lower penalties for breaking a mortgage. With a big bank, a $10,000 penalty for breaking mortgage early, may only cost you $3,000 with a Monoline Lender. This is highly advantageous to someone who wants the security of a long term fixed rate but isn’t 100% certain they will be carrying out their mortgage at that property for the full five years. The disadvantage is the almost blind trust a client must have. These Monoline Lenders do not have much brand recognition with the public, they have limited direct access, and usually do not have any physical locations to visit. This makes it hard for some people to feel comfortable using them as their mortgage provider.

Private Lenders

The benefit of a Private Lender is that anyone who has inconsistent income, unique properties, poor credit history or any type of severe risk in their application, can get an approval. When a Chartered Bank says no, a Credit Union says no, and a Monoline Lender says no, a Private Lender can say yes. The disadvantage- your interest rate is going to be significantly higher and the privileges such as prepayment and portability are going to be significantly less. As well, with most lenders, they will pay the mortgage brokers commission themselves. In this case, you the borrower will be paying a fee to the broker.

This information is extremely powerful to you as a home buyer and even as a current home owner. As always, please contact me your Dominion Lending Centres Mortgage Professional if you wish to discuss any of these options further or how they may be of benefit to you!

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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Every winter, athletic power couple Ashleigh McIvor and Jay Demerit manage to scale back their busy lives into a 340-square-foot cabin in the woods.

You would think that an Olympic gold medal and a successful pro soccer career would come with an opulent lifestyle, even after retirement from competition. But Canadian freestyle skier Ashleigh MacIvor and former Vancouver Whitecaps captain Jay DeMerit, however, today spend their winters in more austere surroundings.
The couple, along with their two-year-old son, Oakes, shack up in a 340-square-foot cabin nestled in the Coast Mountains near Pemberton, B.C., during the winter months. As MacIvor explains to Our House magazine, the idea of major downsizing was both natural and experimental.
“We are so programmed to want so much more than what we need,” she explains. “I’ve always been happiest in the woods or the mountains, with no sign of the built environment, no technology or electronics, just some great company and—typically—my mountain bike.”
She notes that her husband thrives in the high-energy, highly social environment of a big city, but can appreciate both lifestyles. The couple also have an apartment in Vancouver’s Chinatown and a condo in Whistler that is normally rented out. MacIvor says she was interested to see how Jay would adapt to cabin living.
“I think it’s so easy to get bogged down by all of the noise in modern-day society,” she says. “We don’t even take the time standing in line for coffee to reflect on anything going on in our lives, or to dream up ideas for the future. Instead, we get straight to work on our phones. When you get out of the city, you seem to have more time in each day.”
MacIvor, who grew up in nearby Whistler, describes the cabin as the “fort of all forts.” As a teenager and in her early twenties, she spent a lot of time mountain biking in the Pemberton area and always loved riding two trails in particular: Creampuff and Meatgrinder. In the fall of 2008, glancing over to those bike trails from a nearby barn, she fell in love with what would eventually be her neighbours’ house. Shortly thereafter, MacIvor heard that these residents were selling the adjacent 10-acre parcel. She worked out a deal with them and bought the land in 2008.
The 2010 Olympic medalist decided to build the cabin in 2009 because she was having so much trouble finding a place to live in Whistler—landlords were kicking tenants out to renovate and rent for top dollar during the Olympics. Her dad helped with the framing and some friends pitched in with the rest. They used a lot of recycled building materials from renovation projects in Whistler, and then built a huge deck with a fire pit and added a hot tub.

The former Olympian does have some advice for anyone thinking about doing something similar. She notes that the family takes advantage of storage space, including a shipping container in Pemberton and a storage room attached to their Whistler condo that they can access even when it’s rented.
“I don’t think we would have been able to permanently make the move to 340 square feet, and get rid of all the stuff we think we need to live the city life, or even the Whistler life,” MacIvor says.
While the cabin in the woods may be small, it isn’t without a few luxuries, MacIvor points out. It has a full-sized washer and dryer, in-floor heating in the bathroom, granite countertops and, of course, the hot tub. Still, the family has noticed a difference scaling back their lifestyle during their time there.
“We used to eat out all the time. Like, three meals a day, often. When you live in a cabin in the woods, or even just in a small town, you exhaust your dine-out options pretty quickly and inevitably learn to love cooking at home. And let’s face it, there is probably a lot of extra fat and sugar going into most restaurant dishes,” MacIvor says. “We both felt so much healthier after a few weeks of home-cooked meals and yummy juices/smoothies. And eating out is expensive—albeit less so when you’re a sober, pregnant or breastfeeding woman. It was a good lesson in just how little we could spend, given the chance to remove ourselves from the city life. It’s funny though, when it comes to essentialism, the way I see it, we should all spend less so we can work less.”

Life after Competition

The retired life is anything but for athletes Ashleigh MacIvor and Jay Demerit. Since leaving the pitch in 2014, Demerit has launched a handcrafted stereo manufacturer called the Portmanteau Stereo Co., while also creating a curriculum and running a soccer-focused yet all-encompassing youth development program called Captains Camps. Meanwhile, MacIvor will be in front of the camera joining CBC’s coverage of the 2018 Olympics in Pyeongchang, South Korea, and as an analyst for the World Cup Skicross season.
And she’s got some pretty big predictions for the ski team this year. “We have the best skicross team in the world,” she says. “I have no doubt that we will bring more medals home in 2018. Unfortunately one of our best hopes, reigning Olympic champion Marielle Thompson, just blew her knee. One of the amazing things about Canada Skicross is just how deep the talent pool is. Every one of our athletes has the ability to win an Olympic medal.”
MacIvor is also still fascinated by the Games and the attention they hold every four years. The four-year interval is part of what draws spectators in, she believes. Viewers instinctively understand that these athletes are competing under the highest-pressure conditions they will ever face, and that their chance to prove themselves is fleeting in their sporting careers, let alone their entire lifespans.
With all of the support that goes into sports programming for each nation focused on increasing the chances of winning more Olympic medals, every taxpaying spectator feels like they have played a role in getting these athletes to the big show, she adds.
“Beyond that, I think that we all recognize the positive impact success on that level will have on our nation’s youth as they watch it all unfold,” she says. There are so many valuable life lessons that can be learned through sport. It’s the greatest metaphor for real life survival and strategies for success and fulfilment.”

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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With 47 per cent of homeowners scheduled to renew their mortgages this year, 2018 is a year of change for lots of Canadians.
Here are the top 8 things you can do to get the best renewal:

1. Pull out your mortgage renewal now, and start early. When you are proactive instead of reactive you can see if there is anything on your credit score or lifestyle that we can modify to ensure you are positioned for the best renewal. You are only in a position to do this when you start early- in the last year of your mortgage you will have the most amount of options available. For example, there can be an inaccuracy in your credit report or you may be considering an income/job change that would impact your options. We can look at timing accordingly for you.

2. Do not just sign the renewal offered. Lenders can change the terms of your mortgage, and the renewal you are signing can cost you up to four per cent of your equity if you are with the wrong lender for your current life stage.

3. Most people think the best rate is the best renewal – WRONG. The terms are most important and with all terms moving or selling is the only reason most people think they would ever break a mortgage- THIS is simply not the case, a change in the interest rate market, divorce, health, job change, investment opportunity and many other reasons would contribute to a future modification being beneficial for a consumer.

4. Take into consideration lender history. The lender can have a higher prime then anyone because they know the cost to leave outweighs staying the course. The lenders are very smart with their calculated risks- and this is not something they have an obligation to disclose.

5. Remember your lender has a bias – their job is to handcuff you so they can make as much profit off you as possible- don’t be a victim.

6. Do not shop each lender on your own, it takes points off of your credit score. All lenders have different rates based on your score and you want to position yourself to get the best. By using a mortgage professional, they can shop multiple lenders protecting your credit using only one application, while the rate variation can be on average a half a percent!

7. Don’t get sucked into the online rate shopping- any monkey can post a rate online and you can drive yourself crazy looking at something that does not exists. In today’s complex mortgage market there are significantly different rates based on – insured mortgage vs uninsured mortgage, switch vs refinance, purchase or renewal, principal residence vs rental, salary or self-employed, 600 credit score or 700 credit score, amortization of 20 years to 30 years, type of property condo vs house, and leased land or freehold. The variations can mean a difference in thousands of dollars. Like diagnosing a medical condition, you can’t go online, you do have to put in the appropriate application and supporting documents to verify which options are available to you that will result in the lowest cost in borrowing.

8. Remember your mortgage is the largest debt and investment most of us have, when you contact an independent mortgage professional, we are going to invest all the work and expertise and advise you in your best interest regardless if we get your business. We may after our review advise you to stick with your existing lender, or make another recommendation for you. We are only here to enhance your finances and save you money, and there is no cost for our service.

Things to consider before you buy a heritage home

We’ve all walked by them at some point and marveled. It’s the character house that has to be at least 100 years old and is still standing. Your mind takes you to a different place. You start thinking about what life must have been like when it was built, the families that have lived there through the years. If the walls could talk, right? Most of us will just have to settle for our modern abodes. There are, however, a lucky few who, with a bit of patience and a love of the classics, call these heritage houses their homes.
Nestled in the older enclave of Queen’s Park in New Westminster, B.C., you’ll find Tony Sverdrup and his heritage beauty. The house, which spans 5,500 square feet, predates the First World War and has an interesting history. Built in 1911 by architects Gardner and Mercer, the craftsman-style home originally belonged to William B. Johnston. He owned Johnston’s Big Shoe House in New Westminster, a pioneer business in a city that at the time was still the bustling centre of the Lower Mainland region.
While the house at 212 Queens Avenue has a storied history, it was the architecture that really drew Sverdrup to the home. The building, which he bought in 2001, still boasts most of its original features, including the 10 foot-ceilings, oak floors, single-pane glass windows, wainscoting panels, wraparound staircase and a wood-burning fireplace. The kitchen is basically the only part of the house that’s not original.
“The thing about the heritage homes is each one is unique upon itself, in terms of quality of the build. You can’t replicate that in today’s buildings,” he tells Our House magazine. Whereas quick-built houses of the past 50 years can look dated quickly, hand-built homes tend to retain their grace and good bones. They’ve also seen it all and are therefore less likely to surprise you than a new build. Their foundations have settled. They’ve been through windstorms, floods and even earthquakes.
While it may have all the cool features you’d expect in a century-old gem, however, Sverdrup’s house has a few less desirable aspects that you don’t find in a modern home. There’s no insulation in the walls, so in a cold winter the heating bills can soar. Also, fixing or replacing even the simplest of hardware, like light switches, requires careful sourcing. As Sverdrup points out, you can’t just go to Home Depot to find these pieces.
“Basically it’s almost like a lifestyle; you’re constantly working on the house,” he says. “It will never be completed. Nothing is to code. Everything is the way they did back then.”
The home is not unique in either age or character. The street is lined with homes dating back to the late 1800s. While every city has its own way of dealing with its architectural legacy, in New Westminster, the city recently designated the entire neighbourhood a heritage conservation area. The policy means a heritage alteration permit is now required for changes to the front, sides or roofline of a house built before 1941, or any new residential construction in the neighbourhood. According to the city’s website, the purpose of the policy is to minimize the loss of historic houses and street character, while ensuring any new builds are appropriate to the existing character of the neighbourhood. If you are keen on owning a heritage home, in other words, you’d best to consult with your local municipality on the rules around such structures first.
Sverdrup sees both the pros and the cons of owning a heritage home under these restrictions. Homes that have been well cared for should provide more value, he says, but if the building’s dilapidated, tearing it down or even making major renovations can be problematic.
“Some people love it and some people wouldn’t love it. You have to be one who appreciates quality workmanship,” he says.
If you’re convinced that a century-old charmer is the right place to hang your hat, there are financial considerations too. Sharon Davis is a mortgage planner with Blue Tree Mortgages West in Coquitlam, B.C. She has some experience with heritage homes and used to think anything with a whiff of “heritage” was problematic, but not so much anymore.
There are generally three types of heritage designations to consider for financing, Davis notes.
• When a property is recognized as having some heritage/character/period significance but there are no restrictions on what the owner can do with it, there are typically no issues with financing and most lenders will entertain the mortgage.
• When the property must retain the outside exterior look, but the inside can be as modern as the owner chooses it to be, not all lenders will like this situation, but it shouldn’t be too troublesome to get financing.
• When the property and dwelling is on the city’s designated list, affecting both the inside and outside of the property, it can be tough to finance.
It’s always best to contact a Dominion Lending Centres mortgage specialist to help you through the process.
As for Sverdrup and his home, he has no intention to sell and buy something new. He would never be able to find anything else like it in the region for a price he could afford, he says. Instead, he sees the house like a classic car. It’s beautiful, but needs a lot of upkeep.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

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There have been a lot of discussions around the new mortgage rules and I have had a few clients ask about what that means for them. Since stress testing on mortgages began last year, the biggest change this January will be for people who are putting more than a 20% down payment on their new homes.

What do the new mortgage rules mean for them?
The impact of the new mortgage rules as of January 1, 2018, will require all uninsured mortgage borrowers to qualify for their mortgage using the Bank of Canada five-year benchmark rate, or at their current rate plus an addition 2%. (Uninsured mortgage borrowers are typically those who purchase a new home with more than 20% of its total value.)The government is stress testing our current finances as a way to help prevent any unnecessary financial risks from Canadians. This change was primarily intended to help curb the housing bubbles in Toronto and Vancouver, but will affect homebuyers across the country, including those looking to qualify for a mortgage in Edmonton.

Why are new mortgage rules being introduced?
The revisions have been put in place to help ensure that uninsured borrowers can cope with higher interest rates. In the past, when there was a change in the market (increased interest rates, low employment, reduction in house values, etc.), Canadians were finding it difficult to keep up with their mortgage payments. In the past year, we have seen an increase in interest rates which has caused some concern with the government. The overnight rate – the interest rate set as the Bank’s policy interest rate, which influences mortgage rates, sat at a historically low 0.5% earlier in 2017  – has been raised 75 basis points by the Bank of Canada since July. A third rate hike took place this month. Although an unexpected surprise for many, the hike in interest rates is essentially providing Canadians with an opportunity to act more financially responsible. This new regulation will help make it more difficult for Canadians who were borrowing against the value of their homes to make new financial investments, thereby reducing the country’s financial risk.

Despite the changes to the new mortgage rules, people will still be looking to buy new homes with mortgages, but will be shifting their outlook on what they need. In Edmonton, where housing price are still very affordable, the shift may not be as difficult as in other markets. In a recent interview with BuzzBuzzNews, real estate broker and TalkCondo operator, Roy Bhandari said, “The new rules won’t slow sales. Instead, buyers will look at more affordable options on the market.”

If you have any questions, contact me your trusted Dominion Lending Centres mortgage broker.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages #mortgages #ndlc #freedomofchoice

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A recent article featured on www.mortgagebrokernews.ca brings up some interesting points to consider.
With approximately 47% of mortgages in Canada coming up for renewal in 2018 and in a rising rate climate, it would be wise to consider the impact on our personal mortgage. What will these increases mean for you?
70% of Canadians are in 5-year fixed rate mortgages and the rates these people secured in 2013 are still similar to what is being offered in 2018, so a possible increase in payment that comes along with a slightly higher rate could be quite easy to handle.
However, in 2019 rates will likely be significantly higher than what consumers locked into in 2014. The payment shock could be substantial. Not to mention that increases in the Prime rate will also affect unsecured credit such as lines of credit and credit cards. And the Bank of Canada is certainly in an upward trend with the Prime.
Translation… as rates go up for mortgages and other credit accounts, so do payments.
What can you do? If your mortgage is maturing this year or in 2019, it is highly advisable to contact an experienced Dominion Lending Centres Mortgage Broker to evaluate your position. You will likely have seen a healthy appreciation in value in your home in the past few years, so perhaps it’s time to get ahead of the “rate train” and consider consolidating your unsecured credit with your mortgage and lock in at today’s still low rates before you start to feel the pinch.
The latest rule changes that came into effect January 1, 2018 could also have an impact on your ability to qualify for what you need, so getting a free evaluation will be more valuable than ever.
As always, feel free to contact me your mortgage professional for any questions you may have.

Contact me for your best mortgage options 705.669.7798 or trina@ndlc.ca

#trinamortgages #mortgages #ndlc #freedomofchoice

#bestmortgageforme #executive #firstimehomebuyer

If you found this information valuable, I only ask that you share with your friends and family.

Copyright DLC