The Vancouver Life Real Estate Podcast The Vancouver Life Real Estate Podcast

Canada's inflation dropped more than expected this month and came down to 5.2% from 5.9% the previous month. This was the first year-over-year drop as inflation registered at 5.7% last February. The 0.7% drop was the largest since April 2020. However, year-over-year base effects still make this an almost 11% growth over the last year. For example, groceries still lead the pack in growth, up 10.6% year-over-year, driven by supply chain issues and bad weather. The energy sector was a significant contributor to the drop in inflation but what was very significant about this print was that mortgage interest costs are showing up as an ugly component of the CPI basket, and that metric is surging. 0.7% of the 5.2% is from this! Meaning the Fed is creating the very same inflation they're trying to fight. March of 2022 inflation was at 6.7%, so base effects should see next month's inflation print continue to drop at a similar pace to last month's, placing it around the mid to high -4s should the trend continue.

This trend will impact mortgage rates eventually. The 5-year Canadian bond is now sitting at 2.79% and trending lower since bonds corrected downwards. If 5-year Canadian bonds stay low, mortgage rates in Canada are likely to follow suite as well. This is because mortgage rates are influenced by long-term interest rates, and 5-year bonds are one of the benchmarks for long-term rates in Canada. The last time bond rates were at 2.8% was back in 2010 when fixed mortgage rates were 5.4% and variable rates were 2.2%. While mortgage rates don't always move in lockstep with the central banks, expect to see variable and fixed rates continue to fall if we continue in this direction.

Did you hear population grew by over 1 million people last year in Canada? This is certainly an interesting development for Canada, as a population growth of over 1 million in a single year is very significant. It's worth noting that Canada has long been a destination for immigrants, and it seems that international migration is the primary driver behind this recent population growth. It will be interesting to see how this trend continues in the coming years and what impact it has on various aspects of Canadian society, such as the economy, healthcare, and infrastructure. 

This marks the first 12-month period in Canada's history where population grew by over 1 million people, and the highest annual population growth rate (+2.7%) on record since that seen for 1957 (+3.3%). The previous record population growth rate in 1957 was related to the high number of births during the post-war baby boom and the high number immigration of refugees following the Hungarian Revolution of 1956 - however this did not break the 1 million mark. The reason behind Canada's record-high population growth is definitely different, since international migration accounted for nearly all growth recorded in 2022 (96%).

How will the government deal with this? According to CMHC Canada needs to build 3.5M additional homes (over and above current projections) by 2030 in order for housing to be affordable again  (500k per year!)  Our government's solution is the Housing Accelerator Fund. According to the National Housing Strategy this will be implemented in June 2023. A full two years since they were elected on that promise.


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Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

Qualifying for multiple mortgages can be a complex and challenging process. It requires a thorough understanding of the mortgage industry, as well as the financial requirements needed to secure more than one mortgage. For individuals who are interested in purchasing multiple properties or refinancing existing ones, seeking the help of a mortgage professional is essential.
A mortgage professional who specializes in this area can provide valuable guidance and expertise throughout the process. They can assess your financial situation, review your credit history, and determine the best approach to securing multiple mortgages. Additionally, they can help you navigate the application process and ensure that you are meeting all the necessary requirements.
There are several factors that can impact your ability to qualify for multiple mortgages. For instance, lenders will take into account your debt-to-income ratio, credit score, and other financial obligations when evaluating your application. In some cases, you may need to provide additional documentation or evidence of income to demonstrate your ability to make multiple mortgage payments.
Another key consideration is the type of property you are interested in purchasing. Different lenders may have different requirements for investment properties, second homes, or vacation homes. It is important to work with a mortgage professional who understands these nuances and can help you identify the best options for your needs.
When considering multiple mortgages, it is also important to carefully evaluate the potential risks and benefits. While owning multiple properties can provide additional income and investment opportunities, it also comes with added expenses and responsibilities. You will need to consider the ongoing costs of maintaining and managing multiple properties, as well as the potential risks of market fluctuations or changes in interest rates.
Ultimately, qualifying for multiple mortgages requires careful planning and a strategic approach. By working with a mortgage professional who specializes in this area, you can gain valuable insights and guidance to help you make informed decisions and achieve your financial goals. Whether you are a seasoned real estate investor or a first-time homebuyer, a mortgage professional can provide the support and expertise you need to navigate this complex process with confidence.


Mychal Ferreira
BMO Mortgage Specialist
778.994.3222
mychal.ferreira@bmo.com
instagram.com/mychalmortgages

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_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

The collapse of SVB, the 15th largest regional bank in the US, sent shockwaves through the financial industry in March 2023. The bank announced on Wednesday that it was attempting to raise $2.25 billion and complete a $21 billion asset sale to overcome the difficult situation it found itself in after rates accelerated by 450 basis points over nine months. However, by Thursday afternoon, reports emerged that there was a $42 billion bank run on deposits, leading to the bank's negative balance of $958 million and a 60% drop in the stock price by the end of the day.

The collapse of SVB highlighted several key issues in the financial industry, including what feels like the age of institutional negligence creating a conversation around the re-emergence of personal responsibility, and that there should be major consequences for actions that are taken by people in these positions. For instance, the CEO of SVB sold $3.5 million worth of personal shares one week before the collapse, and in the last two years, there were nearly $84 million worth of insider share sales.

One of the significant impacts of the collapse of SVB was the sharp fall in bond yields. The 5-year government bond fell from 3.57% to 2.89% in just three days! The largest drop in 27 years - more than the pandemic and the 08’ GFC causing markets to price in two rate cuts instead of one rate increase by summer. The collapse of SVB had significant implications for the financial industry and the economy, and it highlighted the importance of taking personal responsibility for one's financial well-being and keeping  the majority of savings in hard assets that produce consistent cash flow.

The collapse of SVB is not an isolated incident in the financial industry. According to the FDIC, between 2001 and 2023, the US experienced 562 bank failures, which is an average of one every two weeks. This indicates a lack of accountability and responsibility in the financial industry, and it raises concerns about the stability and security of the banking system. By contrast, Canada has not experienced any bank failures with assets over $1 billion. This is a testament to the country's stable banking system and regulations that prioritize accountability and responsibility. The absence of bank failures in Canada is noteworthy and provides an example for other countries to follow in establishing stable and secure financial systems.

The issue of bailouts is not limited to the financial industry. The COVID-19 pandemic has also led to a significant increase in government bailouts for homeowners and businesses. For instance, the B.C. government provided a $479 million bailout to TransLink to help the transit system deal with the impact of the pandemic. The funding kept fares stable for transit users and avoided service cuts.

The collapse of SVB also had implications for the housing market in Canada. Canadian home prices fell $130,000 since their peak, and the housing market recorded the fewest number of new listings for the month of February since 2003, with a 20-year low on a national basis. National home sales hit their lowest levels for the month of February since 2009, and house prices have fallen $130,000 on average from peak to trough. Check out the conversation in this weeks podcast and get the local numbers for Vancouver.


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Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

Applying for a mortgage can be a daunting task, and it becomes even more complex when you run an incorporated business. As opposed to an individual, the income earned by a corporation is treated differently by lenders. If you are self-employed and have incorporated your business, you may find it challenging to obtain a mortgage as many traditional lenders are not familiar with this structure. Therefore, it's essential to work with a mortgage specialist who understands this structure and can help you navigate the process.
Mychal Ferreira, a mortgage specialist at the Bank of Montreal, specializes in this style of mortgage where the gross income goes into the company, and the individual pays themselves personally through dividends. This structure helps minimize personal taxation, which is a significant benefit for self-employed individuals.
In the past, most banks did not consider incorporation income when it comes to qualifying individuals for a mortgage. This created a barrier for many self-employed individuals who were unable to secure financing for their homes. However, things are changing, and more lenders are recognizing the value of incorporation income, especially for professionals who earn a commission-based income such as doctors, dentists, and realtors.
Mychal Ferreira's expertise comes in handy as he walks clients through the process and teaches them how banks look at professionals in this situation. He helps them understand how they can position themselves for success when it comes to qualifying for a mortgage. Mychal's approach is to look at each client's unique situation and tailor the mortgage to their needs. He understands that each client's financial situation is different, and a one-size-fits-all approach will not work.
Working with a mortgage specialist like Mychal is crucial as they can help you understand the intricacies of the mortgage process. They can help you navigate through the paperwork and explain the jargon used in the industry. Additionally, a specialist can help you access lenders who are more familiar with incorporation income and are more likely to offer you a mortgage.
In conclusion, if you are self-employed and have incorporated your business, obtaining a mortgage can be a challenging process. However, with the help of a mortgage specialist like Mychal Ferreira, the process can be more manageable. Mychal's expertise and experience in working with self-employed individuals can help you obtain a mortgage that fits your unique situation. Remember, it's important to work with a specialist who understands your financial situation and can help you navigate the process successfully.

Mychal Ferreira
BMO Mortgage Specialist
778.994.3222
mychal.ferreira@bmo.com
instagram.com/mychalmortgages


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

The news across the nation this week was that the Bank of Canada came through on it’s word and held interest rates at 4.5%. This is the first time in a year that the Bank of Canada took it’s foot off the break and gave all variable rate mortgage holders a sigh of relief. As interest rates begin to stabilize and the bank of Canada moves to the sidelines, it’ll be interesting to see how the market responds. Typically this time of the year we have a lot more listings but with current inventory levels and really low levels, we’re already seeing the return of multiple offers for property that is priced to market.
 
February saw prices rise for the first time month over month and with median prices already up another $22,000 this month, and up $82,000 in the last 9 weeks alone!! We are starting to see signs that the market is becoming much more active. Higher levels of activity will lead to higher levels of consumer confidence which we believe will continue to build throughout the year. Toronto for example saw an 8.5% increase in month over month sales - the highest in 6 months and what’s very important to note is that 40% of those sales last month were ABOVE the asking price! This is largely due to a lack of inventory and Vancouver was similar showing 20% of its deals selling over the asking price. All of this pointing to a 2nd month in a row of a sellers market. 

 We’ve had a number of sellers on the sidelines waiting to hear about this announcement. Many are now going to be listing this month as the data points to a much stronger sale price than over the last few months. If you’re considering listing your property and want to know if the market is trending in your favour, just reach out to the contact info below. 


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

We are extremely excited to have interviewed the creator of eXp Realty and on this episode we hear about how the home buying and selling experience is evolving and how the first ever digital brokerage is shaping the future of real estate.  
A bit about Glenn:
Glenn Sanford is the founder eXp Realty, CEO of eXp World Holdings, Inc. and Chief Strategy Officer for VirBELA. 
After being involved with a number of internet start-ups in the 1990s and early 2000s, including a stint at AOL, Glenn started a highly successful real estate career in 2002. In 2006, his fourth full year in the business, Glenn and his team closed over $60,000,000 in real estate almost entirely from online lead generation and was ranked as one of the top 50 teams nationally with Keller Williams. After the downturn in 2008, he and his team developed the first cloud-based brokerage model that uses a 3D avatar based online office to collaborate and communicate while abandoning the physical bricks and mortar infrastructure normally associated with real estate brokerage. In the last 11 years, since launching with 25 agents, eXp Realty has grown to over 87,000 agents across 24 countries.  
eXp Realty refers to itself as Agent-owned and the company became a public company in 2013 and in 2014 started to distribute equity to its productive agent owners. eXp Realty provided the first ESOP style Stock Ownership Program for its agents and brokers as well as a revenue sharing program all designed to enhance the agent-centric business model.
EXP is the fastest growing brokerage in history and has grown by over 11,000 agents in just the last 12 months alone.   
 
 The company saw revenues of $4.6 Billion in 2022, and was one of the few brokerages to post a significant profit in the downturn year. 
 eXp’s market value has exceeded $3.6 Billion and, as the largest shareholder, Glenn is one of the tech worlds most recent Billionaires.  
In this episode we talk with Glenn about home buyer and seller behaviours and trends that he’s seeing from tracking sales from around the world.   
 
 With eXp entering its 15th year, Glenn Sanford discusses the exciting evolution of the brokerage and outlines some of the massive acquisitions they’ve made recently, and how these are focused on increasing agent abilities to dominate in any marketplace. 
Glenn talks about the role of artificial intelligence in Real Estate and if there’s place for it to completely remove the need for human interaction within a real estate transaction. 
As with any business model that achieves this level of success, the competition has noticed and the copy-cat brokerages are starting to appear.  Glenn offers his position on the competition, and what he see’s as the future for tradition brokerages. 
 This was a real eye opening and inspiring conversation with a true visionary and someone who has completely altered the course of Real Estate on a Global level.
 We hope you enjoy it too.
To learn more about eXp, visit : https://expworldholdings.com


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com