If you’re a rookie homebuyer in British Columbia, odds are you’ll choose a mortgage with a 40-year amortization. That’s apparently what it takes for most 1st-timers to qualify these days. 25-years, the long-time standard, no longer cuts the mustard.
BC is Canada’s #1 province for 40-year and high-ratio (< 20% down) mortgages. That’s largely because their $452,810 average home price is highest in the nation.
Moreover, Andrey Pavlov of Simon Fraser U. says 40-year amortizations are supporting house prices there. Without them, he says, prices would fall.
Frightening thought!
I still don’t understand why people love living in Vancouver and trying to buy property at all.
For example, lets look at this gem of a property for a fine low price of $519,000:
http://tinyurl.com/2uxqz7
Then you come out to NB (or anywhere in the Maritimes really) and you can get this great place with an awesome view.
http://tinyurl.com/2wtku2
Yup, I sure love the BC home. I wonder if the stove on the front porch comes with it for that price, or if that’s to be negotiated. It’s like living in paradise out there I’m sure. What’s more interesting is the median family income (from 2000) in NB was 60,136 and in BC was 73,294. I still don’t understand how any families are buying homes and making ends meet out there.
No wonder we have the Atlantic 6/49 phrase ‘Where a million does what a million should’.
Just for a comparison, a starter like that BC home in Saint John, NB would be more like 55K or so . . . easily paid for by most families, see below.
http://tinyurl.com/2ctxnh
Hey thanks for the link Traciatim. Looks like a good fix n’ flip! Maybe we’ll throw on a new coat of paint and list her for $600,000!! :-)