Wading through today’s soft real estate market
New Home Condo Guide, May 2019 issue, I, Alisa Aragon was interviewed by Stephanie MacDonald. Here is the article, it has some useful tips that maybe helpful.
Next Home New Home + Condo Guide sat down with mortgage specialist Alisa Aragon to hear her views on today’s real estate market.
New Home + Condo Guide: We’ve been hearing how the real estate market is depressed, but is the news all doom and gloom?
Alisa Aragon: Well, we just have to deal with whatever comes our way, don’t we? The Bank of Canada acknowledged that the slowdown in the economy was a bit more than they expected, and that the new “stress test” has had the effect of softening the real estate market, so they decided to not raise the interest rate. That’s one thing. This is still a buyers’ market, and I have seen a lot of my clients taking this opportunity to move up from a condo to a town home, or into a house. Sure, you will be selling lower, but you will also be buying at a lower price as well, and most people have built up equity they can use towards their next home.
NHCG: What about for first-time buyers?
AA: The new mortgage rules have definitely made it more difficult for first-time buyers to get into the market. Some people have access to lending from their parents or getting an “early inheritance” to make up a down payment, but that doesn’t change the fact that Vancouver is still very expensive. A few of my clients have chosen to invest in properties in the interior of the province, rent them out, and continue to rent in Vancouver, building equity out of town. With an investment property, you need at least a 20 per cent down payment, but the properties cost a lot less, so it can be an affordable option.
NHCG: What kind of mortgage makes sense now?
AA: It is going to be different for everyone. I do tell people that the interest rate is not necessarily the most important thing. When I bought my first condo years ago, I signed for the mortgage, got the rate that was advertised, but when I sold the condo to buy a house, I had to pay huge penalties. So, in some cases, the terms of the mortgage are more important than the interest rate.
Alisa Aragon has a mortgage license from the University of British Columbia. In 2017, she started Bridgestone Financing Pros. She is also on the board of directors of the Home builders Association of Vancouver (HAVAN).
by Stephanie MacDonald.
Link to the article: Click Here, pg. 54