Blog by Brenda Russell

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Victoria Real Estate Update

Today in Victoria's daily newspaper The Times Colonist was an article explaining the Victoria Real Estate market.  Royal LePage Coast Capital Realty's managing broker Carol Guerts was quoted throughout the article, below is an insert from the article and if you would like to read more about this article of Victoria's Real Estate just click.  Also today on the radio there were new announcements about the Oak Bay Beach Hotel and Private Residences to be built.

Royal LePage Coast Capital Realty Carol Guerts Quote

 

The number of sales that was announced for the month of June 2009 was the fifth largest month in the last 7-8 years!  The average days it takes to sell a home last year was approximalty 38 and this year is showing at 51. 

Introducing the "50/50" Mortage Product Option

 

Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate.

Although there was a time in recent years when mortgage experts considered a variable rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you.

In essence, since it’s extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk.

If you opt for the Dominion Lending Centres 50/50 Balanced Mortgage, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty. As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge.

 

 

The 50/50 mortgage product is well-suited to a variety of borrowers, including those who:

  • Would normally go fully variable but are afraid prime rate is at its bottom
  • Aren’t comfortable being locked into a fully fixed rate
  • Can’t decide between a fixed or variable mortgage

Some features of the 50/50 mortgage include:

  • 20% annual lump-sum pre-payment privileges
  • 20% annual payment increase ability
  • Portability (the option to transfer your existing loan amount to a new property without penalty)

As the 50/50 option is a fairly new offering, according to a recent study by the Canadian Association of Accredited Mortgage Professionals (CAAMP), 5% of Canadian mortgage holders have 50/50 mortgages compared to 28% with variable-rate mortgages and 68% with fixed-rate mortgages. But many experts believe the 50/50 mortgage is quickly gaining momentum.

If you have any questions or would like help with real estate in Victoria please call me direct at 250.744.4556 and stay tuned for more real estate updates...