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10 words to know when buying a home

Buying a home is one of the most important financial decisions you will make. To help you understand the process and have confidence in your choices, consult the following glossary of common terms you may encounter during the homebuying process.

1. Amortization

Length of time over which the debt will be repaid.

2. Mortgage term

Length of time that the mortgage contract conditions, including interest rate, is fixed.

3. Closing costs

Costs in addition to the purchase price of the home, such as legal fees, transfer fees and disbursements, that are payable on closing day. They range from 1.5% to 4% of a homes selling price.

4. Down Payment

The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.

5. Equity

The difference between the price for which a home could be sold and the total debts registered against it. Equity usually increases as the mortgage is reduced through regular payments. Market values and improvements to the property may also affect equity.

6. Fixed / variable mortgage interest rate

A fixed mortgage interest rate is a locked-in rate that will not increase for the term of the mortgage. A variable mortgage interest rate can fluctuate based on market conditions, but the mortgage payment remains unchanged.

7. Gross Debt Service Ratio (GDS) / Total Debt Service Ratio (TDS)

GDS is the percentage of the gross income that will be used for payments of principal, interest, taxes and heating costs and 50% of any condominium maintenance fees or 100% of the annual site lease for leasehold tenure. TDS is the percentage of gross income that will be used for payments of principal, interest, taxes and heat and other debt obligations, such as car payments or payments of other loans.

8. High-ratio mortgage / conventional mortgage

A high ratio mortgage is a mortgage loan higher than 80% of the lending value of the property. A conventional mortgage is a mortgage loan up to a maximum of 80% of the lending value of the property.

9. Mortgage loan insurance

Mortgage loan insurance is typically required for residential mortgage loans with a loan-to-value ratio of more than 80%, and is available from CMHC or private companies. It is important not to confuse mortgage loan insurance with mortgage life insurance, which gives coverage for your family if you die before your mortgage is paid off.

10. Open / closed mortgage

An open mortgage is a flexible mortgage that allows you to pay off your mortgage in part or in full before the end of its term. A closed mortgage, in some cases, cannot be paid off in whole or in part before the end of its term. In other cases, the lender may allow for partial prepayment of a closed mortgage in the form of an increased mortgage payment or a lump sum prepayment. However, any prepayment made above stipulated allowances may incur penalty charges.

The information is provided by CMHC for general illustrative purposes only, and does not take into account the specific objectives, circumstances and individual needs of the reader. It does not provide advice, and should not be relied upon in that regard. The information is believed to be reliable, but its accuracy, completeness and currency cannot be guaranteed. Neither CMHC and its employees nor any other party identified in this Article (Lender, Broker, etc.) assumes any liability of any kind in connection with the information provided. CMHC stakeholders are permitted to distribute the materials at their expense. The above mentioned stakeholder organization is responsible for the distribution of this document.

Kamloops Real Estate 2010 vs 2021

Happy New Years!

As we celebrate entering into another year, I thought it would be interesting to take a look back at the Kamloops market over the past decade.  What areas were the most popular, number of sales as the population has grown, how supply, demand and inflation changed pricing across the city. 

Neighbourhoods with the most sales in  2010 (# of sales): 

  1. Brocklehurst (257)
  2. Sahali (227)
  3. Aberdeen (191)
  4. South Kamloops (166)
  5. Westsyde (145)

Neighbourhoods with the most sales in  2021 (# of sales): 

  1. Sahali (397)
  2. Brocklehurst (363)
  3. South Kamloops (284)
  4. Aberdeen (265)
  5. Westsyde (225)

Interestingly enough the same 5 neighborhoods have continued to be the most popular with a continued equal distribution of North and South Kamloops. Brock and Sahali were 1st and 2nd for 2010/2021 and not surprisingly those two areas offer the most in terms of variety of housing types. 

Alternative single family housing options;  the half duplex , apartment, townhouse have grown considerably in sales over the past 11 years. That same period we have seen the average home price double and as a result there has been a significant increase in the multi family category of homes. 

All in all it’s always fun to compare year over year but looking at the difference that 11 years has made in our city sure makes the numbers hit home in terms of how much has changed. What changes do you think another 10 years will bring?

 

YTD 2010 2021
LIST TO SALE PRICE RATIO 94.08% 99.45%
TOTAL SALES 2220 3064
AVG. RESIDENTIAL SALE PRICE $297,612 $574,257
DAYS ON MARKET 92 42
# OF SINGLE FAMILY HOUSE SALES

TOWNHOUSE

APARTMENT

HALF DUPLEX

MOBILE

 1391

275

151

67

110

 2154

448

588

236

219

 

 

*Table Stats are for Kamloops area only, all types of housing   – Kamloops only: Brocklehurst, Sahali, North Kamloops, Aberdeen, South Kamloops, Sun Peaks, Barnhartvale, Dallas, Westsyde, Campbell Creek/Deloro, Pineview Valley, Valleyview,Batchelor Heights, Cherry Creek/Savona, Dufferin/Southgate, Heffley, Juniper Heights, Pinantan, Rayleigh, South Thompson Valley, Sun Rivers, Knutsford-Lac Le Jeune, Tobiano *

December 2021 Market Statistics

KAMLOOPS AND DISTRICT NEWS

The Kamloops residential market was on track for 4000 sales by the end of 2021 but fell short at the end of the year. According to KADREA President, Chelsea Mann, “As far as our annual sales performance goes, we’ve had the best year sales-wise in a very long time. Our Year-To-Date (YTD) numbers indicate that 2021 has smashed all sales records dating as far back as 2007. In the process of achieveing this, we carried the hot-market momentum from the last quarter in 2020 into 2021 and maintained the upward pressure on unit sales until the first half of 2021. Earlier this year we broke our monthly unit sales and average price records quite easily as compared to 2020 after the initial lockdown months. The rapid sales growth that was recorded across all Boards in BC during most months this year was a result of the favourable government policies, the technology boost that our industry received, and the way REALTORS® maneuvered difficult market situations. As consumer demand was high but there was much reluctance among both buyers and sellers after the re-opening in mid-2021, Realtors® played a crucial role in building trust among consumers and in shaping 2021 as a recordbreaking year for Kamloops & district real estate”.

The average residential price in Kamloops & district now sits comfortably above the $600k mark. “Looking at the current market situation, average residential prices will continue to float around this figure in the days to come. However, this does not mean that $600k is the benchmark price of all property types. The Kamloops & district region is one such area in BC where we can find a range of properties across all price points. Based on the property-type that one may choose, an average consumer in Kamloops can still find properties to best match their budget. As we’ve faced an inventory crunch in the last few months, we’ve had buyers who are willing to pay above the asking price. This has led to average prices continually being pushed higher. A reversal in this trend is unlikely in 2022 as demand for properties in the region is set to continue and we are far below the benchmark of approximately 2000 active listings that we would see in a balanced market”, added Chelsea.

Neighbourhoods with the most sales in  December (# of sales): 

  1. South Kamloops  (19)
  2. Brocklehurst (17)
  3. Sun Peaks (14)
  4. Sahali (14)
  5. Westsyde (13)

Neighbourhoods with the most sales in  2021 (# of sales): 

  1. Sahali (397)
  2. Brocklehurst (363)
  3. South Kamloops (284)
  4. Aberdeen (265)
  5. Westsyde (225)
  DEC 20 DEC 21 Year to Date
NEW LISTINGS 167 99 3609
TOTAL SALES 196 1401 3064
AVG. RESIDENTIAL SALE PRICE $496,001 $631,165 $574,257
AVG. DAYS ON MARKET 73 46 42
ACTIVE LISTINGS 418 542  

–

 

YTD 2020 2021
NEW LISTINGS 3052 3609
TOTAL SALES 2404 3064
AVG. RESIDENTIAL SALE PRICE $483,073 $574,257
DAYS ON MARKET 60 42

 

*Table Stats are for Kamloops area only, all types of housing as of Jan 13/22  – Kamloops only: Brocklehurst, Sahali, North Kamloops, Aberdeen, South Kamloops, Sun Peaks, Barnhartvale, Dallas, Westsyde, Campbell Creek/Deloro, Pineview Valley, Valleyview, Batchelor Heights, Cherry Creek/Savona, Dufferin/Southgate, Heffley, Juniper Heights, Pinantan, Rayleigh, South Thompson Valley, Sun Rivers, Knutsford-Lac Le Jeune, Tobiano *

November 2021 Market Statistics

KAMLOOPS AND DISTRICT NEWS

Although there were fewer sales in November compared to 2020, the year-to-date (YTD) sales are at a 10-year high for KADREA REALTORS®. Chelsea Mann, KADREA President, has seen this first-hand. “The market is still very hot. Our active listing inventory is on the low side, and ‘days on market’ for the typical residential listing keeps coming down. If you’re in the market for a home, you need to act quickly.” High consumer demand continues to push sale prices upward, although Mann believes this may cool down in 2022: “Forecasted mortgage rates will likely put some downward pressure on home prices in 2022, but the market still desperately needs more housing supply. The government is looking at potential initiatives to help boost the supply, but at this point, I’m not confident the proposed measures will support the housing market in the right way.”

Mann is referring to the provincial government’s announcement of new legislation that will require cooling off periods for resale properties and newly built homes. “Our industry supports evidence-based policy, and our provincial association, BCREA, as well as the 10 real estate boards in British Columbia, look forward to a thorough consultation process to understand the full scope of the impact this will have on the market.”

Neighbourhoods with the most sales in  November (# of sales): 

  1. Brocklehurst  (29)
  2. Sahali (19)
  3. Aberdeen (18)
  4. Juniper Ridge (16)
  5. South Kamloops (16)
  NOV 20 NOV 21 Year to Date
NEW LISTINGS 198 219 3510
TOTAL SALES 213 2111 2922
AVG. RESIDENTIAL SALE PRICE $526,917 $615,717 $571,481
AVG. DAYS ON MARKET 73 35 42
ACTIVE LISTINGS 546 632  

–

 

YTD 2020 2021
NEW LISTINGS 2885 3510
TOTAL SALES 2208 2922
AVG. RESIDENTIAL SALE PRICE $481,926 $571,481
DAYS ON MARKET 59 42

 

*Table Stats are for Kamloops area only, all types of housing as of Dec 7/21  – Kamloops only: Brocklehurst, Sahali, North Kamloops, Aberdeen, South Kamloops, Sun Peaks, Barnhartvale, Dallas, Westsyde, Campbell Creek/Deloro, Pineview Valley, Valleyview, Batchelor Heights, Cherry Creek/Savona, Dufferin/Southgate, Heffley, Juniper Heights, Pinantan, Rayleigh, South Thompson Valley, Sun Rivers, Knutsford-Lac Le Jeune, Tobiano *