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federal government officially announced changes to the minimum down payment required on new home purchase.

December 11th, 2015 by Linda Klein


Here is what you need to know:
Today, the government announced its intent to raise the minimum down payment requirements on homes valued over $500,000. Properties below $500,000 will not be affected. Requirements will remain at 5 % down payment for homes under 500,000.

Any amount over $500,000 will require a 10 % down payment. For example a $700,000 home will require a $45,000 down payment, 5 % on $500,000 and 10 % down on the remaining $200,000.

The announced changes will take effect on February 15, 2016.

The purchase closing date can be after Feb 16th 2016

The minimum down payment for homes  $1 million and over remains unchanged at 20%
The government cites its desire to “contain risks in the housing market” as the
reason for its decision.

Variable or Fixed rate Mortgage

November 27th, 2015 by Linda Klein


Courtesy of  4Front Mortgages!

Rates Are Rising
After the Liberal majority win, the government of Canada bond yields started climbing, most likely due to the fact the Liberals have larger spending plans.

Variable Rates
Variable rates have gone up.  What this means is the discount that lenders give off of the Prime Rate has decreased.  A few months ago you could negotiate discounts around .60% – .80% below Prime.  Now discounts are around .30% – 40%. This takes the average variable rate you can get to the 2.35% level.  Previously at 2.00% a variable was an easy sell.  Now, with 5 year fixed rates at around 2.70% the choice isn’t as obvious.

Prime – 2.70%
The Prime Rate, currently at 2.70% may go up earlier than we all thought. With spending promises to keep, combined with a strong US economy it looks as though the long-awaited rate hike could take place in mid-2016. The first rate hike will likely be .25%, which would bring a variable rate to 2.60% (assuming you can still obtain .40% off of Prime), narrowing the gap between fixed rates to a lowly 0.10%, making fixed very appealing now. If you do choose a fixed rate, it is possible that you will qualify for more.  Lenders are required to ensure you can afford your mortgage if rates go up and if you’re in a 5 year fixed term that is all the assurance a lender needs.

Additional Considerations for Fixed Rates

Penalties – Penalties from some lenders (mainly banks) can make getting out of a fixed term very punitive.  Therefore, if you’re considering a 5 year fixed term but not too sure if you’ll be in the home for the full term consider going with a lender who offers a fair penalty calculation.

3 Years – The average time a first time homebuyer keeps in their property is 36 months. Going with a 5 year term may not be the best option if you’re unsure of how long you’ll need that mortgage for. Yes, you can always move mortgages from one property to another, however it can add some complexity to your application

Historical Considerations – Variable rates have been proven to be cheaper in “the long run”. Yes, math doesn’t generally lie, but what’s good in the long run may not necessarily be good for the next 5 years.

Home Sales up 15% in the first 10 months of 2015

November 6th, 2015 by Linda Klein

Sales of Kamloops homes up 15% from 2014

Sales of residential units in Kamloops were down in October, a slip in what has otherwise been a year of double-digit sales increases.

The number of homes sold last month, at 202, is down about five per cent from the same month in 2014.

Sales in the city are up by 15 per cent through the first 10 months of the year. The median price for a single-family home in Kamloops came in at $367,000.

Cyndi Crossley, president of Kamloops & District Real Estate Association, said one trend that will affect both buyers and sellers is a decline in inventory. Residential listings on MLS are nearly 10 per cent lower than a year ago.

She said other markets, including Chilliwack, are experiencing the same decline in listings — a factor that can lead to increasing prices and a so-called sellers’ market.

Another notable aspect for the month was sale of 10 units valued at more than $600,000.

“That’s not what the Kamloops market is typically made of,” she said. “That should be encouraging for those with higher-priced homes.”

The busiest slice of the market is in the $320,000 to $360,000 range.

House Sales Expected to Increase in Kamloops

October 27th, 2015 by Linda Klein

House Sales Expected to Increase in Kamloops

House Sales Expected to Increase in Kamloops

The housing market in Kamloops is expected to remain stable over the next two years, according to a forecast by the Canada Mortgage and Housing Corporation.

Housing sales for Kamloops are expected to be up to 1,750 in 2015, and will increase to 1,780 in 2016 and 1,800 in 2017.

The average price of a home in the Tournament Capital is not expected to greatly increase. The price is expected to be $404,000 in 2015, increasing to $420,000 in 2017.

The vacancy rate of homes in Kamloops is expected to remain steady as well. It is forecasted to be a 3.7 vacancy rate in 2015, down from 3.9 in 2014, and is expected to return to 3.9 in 2016. The vacancy rate in Kamloops is, and is forecast to continue to be, above the national average.

Housing starts are anticipated to slightly decrease going from 518 new homes under construction in 2014 down to 470 in 2017. The new construction to date in 2015 is 9.2 per cent less than it was at this date in 2014 in Kamloops.

Linda Klein Kamloops Real Estate Music in the park July 2015 Schedule

July 5th, 2015 by Linda Klein

Music in the Park runs all summer long.

The free entertainment takes place 7 p.m. to 8:30 p.m., unless otherwise stated, each night at the Rotary Bandshell in Riverside Park, 100 Lorne St. All shows are rain or shine, but subject to change.

Included links to the bands, so you can check them out beforehand.


Riverside Park

July 1 – Canada Day celebrations

July 2 Tiller’s Folly (Canadiana celtic)

July 3 Greg Drummond (Canadian folk rock)

July 4 – Kingpins (classic rock)

July 5Gary Comeau and Cannery Row (Cajun)

July 6Nova Scotiables (East Coast)

July 7 – Beyond Brass (big band classics)

July 8 – Sean Ashby (Sarah McLachlan guitarist)

July 9 – Mike MacKenzie Blues Band (classic rock and blues)

July 10 – Hijacked by B.C. Living Arts – Tribute to Leonard Cohen, Bruce Cockburn and The Band with Van Damsel – 6:30 p.m.

July 11 – Hijacked by B.C. Living Arts – Tribute to Joni Mitchell, Neil Young and The Band with The Caspians and James Wolf – 6 p.m.

July 12Cécile Doo-Kingué (blues)

July 13100 Mile House (English folk roots)

July 14 – Wild T and The Spirit (blues)

July 15 – Scattered Atoms (blues and R&B)

July 16Sally and the Melo Hearts (current and classic rock)

July 17Sabrina Weeks and Swing Cat Bounce (blues)

July 18Ben Klick (country rock)

July 19 – Impulse Response (R&B)

July 20Jane Perrett (classical soprano and showtunes)

July 21 – Ben Caldwell and the Folk Road Show (roots and folk)

July 22Cod Gone Wild (Maritime fun)

July 23 – BCLC Midsummer Music Jam featuring Catch 22 (1980s music)

July 24 Sarah Burton (rockin’ roots pop)

July 25Sherman Doucette (blues harp)

July 26Dave Lang and the Insolent Rabble (swing jazz)

July 27Twin Peaks (duo)

July 28Tanner James Band (folk roots and country)

July 29Kirby Sewell Band (blues)

July 30 – The Longriders (Lynyrd Skynyrd tribute)

July 31 – Trama (rock)

Spacious Rose Hill Rancher

June 29th, 2015 by Linda Klein

Open the door to your new home. Exclusive High Country Estates. 1 acre private lot backing onto green space, 20×40 inground pool, 3 decks, hot tub, gardens & magnificent views of city, river & mountains. This spacious rancher with daylight walk out basement & park like backyard offers space & privacy yet is only 10 mins to town. Main floor with updated kitchen, granite counter tops, walk in pantry & breakfast nook. Dining area open to spacious living room with built in cabinets, picture windows & 28′ deck with new glass railings. 3 bedrooms including master with w/i closet & sliders to deck with morning sun. Laundry & 2 piece bath with access to garage. Walk out basement features large family room, wet bar, fireplace with heatilator, office or music room with double insulated glass doors for soundproofing, bright bedroom, bathroom with sauna, hobby room, workshop & storage. Lower level deck has a built in hot tub. 26×22 garage, large driveway238A8617.238A8621

Just Sold

June 25th, 2015 by Linda Klein

West Pines Villas 46-650 Harrington Just Sold

Thank you for listing and buying with me, it was a pleasure and best of luck in your new home.

This home sold right away. Great location beside Dunes Golf Course.

Linda Klein Kamloops Real Estate Weekly Mortgage rates for week of June 15th 2015

June 16th, 2015 by Linda Klein

DLC Weekly Rate Minder courtesy of Starr Webb

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 2.89% 2.29%
2 YEARS 2.84% 2.19%
3 YEARS 3.39% 2.25%
4 YEARS 3.89% 2.54%
5 YEARS 4.64% 2.54%
7 YEARS 5.30% 3.39%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 2.85%
Variable rate mortgages from as low as Prime minus 0.65%

Linda Klein, Kamloops real estate. How to Finance your Renovation

June 3rd, 2015 by Linda Klein
Courtesy of Mark Bertoli, Abbott Wealth
Home improvement is always in fashion. But the big question for many homeowners isn’t what to do, it’s how to pay for it. There are many ways to secure the financing you need, and each has advantages in certain situations.

Home equity line of credit
A line of credit gives you access to a predetermined amount of credit on demand. Generally, you can borrow up to 75% of the appraised value of your home — up to 90%, if the line of credit is insured. You take what you need, when you need it, and pay interest only on the outstanding amount.

A line of credit secured against the value of your house will typically be issued at a lower rate than an unsecured loan or personal line of credit. Accessing the home equity line of credit is easy and convenient. You may have the option of writing cheques or using a credit card or bank card.

Repayment is also flexible. You can pay some or all of the outstanding balance at any time without penalty, or make interest-only payments.

Increase your existing mortgage
Increasing the amount of your mortgage may be the right renovation-financing option for you if your mortgage is coming due, if you are selling one house to buy another, or if you are taking out your first mortgage.

It may also be a smart move if you’re locked in to a long-term mortgage at a significantly higher rate than is currently available. In this case, any penalty you may incur could be offset by the savings in interest over the long term.

While this option lacks the flexibility of a line of credit, the advantage for many is knowing that the borrowed funds are structured to be paid back in a set amount of time. And interest rates can be fixed, if you choose — unlike a line of credit, which floats against prime.

A second mortgage
A second mortgage is just that — a mortgage that is in addition to your first mortgage. Like a first mortgage, a second mortgage is a loan with a specified rate of interest and repayment schedule.

A second mortgage can be a good choice for homeowners who are locked in to a longer-term mortgage, but wouldn’t benefit from breaking their first mortgage. Lending rates for a second mortgage may be higher than a first mortgage.

Like increasing your mortgage, this option trades repayment flexibility for the peace of mind of knowing the debt will be paid down if you stick to the repayment schedule. Every situation is unique. But we can help you determine your best option.

Pre-approvals, more important and less concrete than ever

June 3rd, 2015 by Linda Klein
 Courtesy of Starr Webb Dominion Lending

Going through the pre-approval process is more important than ever to both you and your Realtor, but the actual term ‘pre-approval’ is potentially misleading.

You may be pre-approved for a certain mortgage amount, however there are still a number of variables that can enter the picture once an offer is accepted. That’s why it is imperative that one always include a clause in the offer along the lines of ‘subject to receiving and approving financing’. (There are variations to be discussed around the specific wording.)

Often clients are reluctant to write the initial offer on a property without feeling like they are 100% pre-approved.

An understandable desire. The risk, though, is that some may falsely believe that they have a guarantee of financing. They don’t.

A lender must review all related documents – not just those of the clients, but also those from the appraiser and the Realtor – as the property itself must meet certain standards and guidelines.

The pre-approval process should be considered a pre-screening – a first step only.

It does involve review and analysis of the client’s current credit report; it should also include a list for the client of all documents that will be required in the event that an offer is written and accepted. Clients should also come away from this initial process with a clear understanding of the maximum mortgage amount they qualify for, along with the various related costs involved in their specific real estate transaction. Equally important: with the completed application your broker is able to lock in rates for up to 120 days.

Why won’t a lender fully review and underwrite a pre-approval?

  • Lenders do not have the staff resources to review ‘maybe’ applications – they have a hard enough time keeping up with ‘live’ transactions.
  • The job you have today may well not be the job you have by the time you write your offer.
  • If more than four weeks pass, all of the documents are out of date – by lender standards – and a fresh batch needs to be ordered and reviewed.
  • The conversion rate of pre-approvals to ‘live transactions’ is less than 10%.

It is this last point that makes it so difficult to get an underwriter to completely review a pre-approval application as a special exception.

The bottom line is that a client’s best bet for confidence is the educated and experienced opinion of the front-line individual with whom they are directly speaking – and that’s their Mortgage Broker. This individual will not be the same person who underwrites and formally approves the live transaction when the time comes.

This disconnect between intake of application and actual underwriting of a live file makes having a ‘subject to receiving and approving financing’ clause in the purchase sale agreement so very important.

Perhaps the most significant factor in undermining the solidity of a client’s preapproval is the relentless pace of change of lending guidelines and policies – changes implemented not only by the Federal Government but also by the lenders themselves. It is very easy to have a pre-approval for a certain mortgage amount rendered meaningless just a few days later through changes to internal underwriting guidelines. Often these changes arrive with no warning and existing pre-approvals are not grandfathered.

It is absolutely worthwhile going through the pre-approval process before writing offers, and in particular before listing your current property for sale or accepting offers. This will give you a good idea of your maximum mortgage amount as well as securing a rate for you. It is a worthwhile endeavour.

Just be aware that aside from the key advantage of catching small issues early and securing rates, a pre-approval is not a 100% guarantee of financing.

But the good thing is, I can help you with this process!

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Kamloops Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.