A new round of mortgage rules from Ottawa could include tough new measures for calculating how the self-employed qualify for loans and tighten regulations for condominium buyers, according to two separate sources.

Ottawa remains concerned about the possibility of an inflated housing market and wants to crack down on the practice where consumers self-disclose what they make when applying for a loan. In the case of the condominium buyer, the government continues to consider a proposal that would have 100% of condo fees count when assessing how much debt a consumer could afford.

“None of this is happening just yet. The housing market has slowed down and the government wants to see what will happen next,” said one source. “If the spring market picks up, then we will see more changes to the rules.”

Bank of Canada Governor Mark Carney said Sunday that some parts of the Canadian real estate market are “probably overvalued” and policymakers are monitoring to see if further steps are needed to cool it.

“We see that in a number of real estate markets in Canada, valuations are at a minimum, firm; in others, they’re probably overvalued. So there are risks there. We’re watching it closely. We’re working with our partners, the federal government, the superintendent of financial institutions,” he said in an interview broadcast on Sunday on CTV.

” Measures have been taken. They’ve been effective. We’ll keep up that vigilance. If more needs to be done, I’m sure the appropriate authorities will take those measures.”

Stated-income products have become very popular during this housing boom, allowing more banks to get involved in loaning to the selfemployed.

“These are individuals that are self-employed, have great credit and won’t be able to validate their ability to pay if they are not showing their income on their notice of assessment,” said one source.

He says those people with stated income could have to make an even higher down payment than the normal 20% that exempts consumers from buying expensive mortgage default insurance.

The source said some self-employed are qualifying for loans based on the assumption they have a lot of write offs, like car payments and housing costs associated with home office costs.

“They get to include that based on the assumption that self-employed people have an advantage from a tax perspective,” said the source. “The government is trying to figure how they would present this.”

A source with one of the banks said the government is trying “zoom in” on marginal borrowers so it doesn’t get into a U.S. type of situation where they were not verifying income.

“What banks are doing usually when it comes with self-employment is not dealing with declared income because nobody believes it. What they do is look at their behaviour and put more weight on it,” said the source, referring to how those consumers handle their debt. “With an employer, you can call and verify their income.”

The labour market is roughly about 13% self-employed so new rules could have a major impact but the source indicated it does not mean those people would be shut out of the loan market. “It will be just more difficult for them. You are going to have to prove income in a more precise way,” he said.

The suggestion the government might crack down on condo buyers is not new, having been scrapped last year in favour of tougher new rules on amortization lengths and refinancings. Most people in the real estate sector now believe amortizations will be reduced to 25 years after having been as long as 40 just three years ago.

Brad Lamb, a Toronto real estate broker and condo developer, has heard the government is again considering including 100% of condo fees in calculating debt levels but doesn’t think it will happen.

“The 25 year amortization is a no brainer, they should do it,” said Mr. Lamb. “It’s not smart to have loose lending rules. But the condo market is hot because of investors not speculators. These investors are coming [from around the globe]. This silly [condo fee] change will do nothing. These people are buying with cash.”

December is a special time for many of our clients. For some, this month is significant for cultural or religious reasons. For others, it’s meaningful because of the time spent with friends and family. For most, it is also a time of planning and looking ahead to the new year.

Whatever this month means to you, we wish you the best.

On a personal note, we just wanted to thank you for your loyalty and support this year. We hope to be of service to you for many years to come.

In fact, helping clients is our business. Often that involves helping you sell your property and/or buying your next Dream home. But it also includes helping you enjoy your current home.

So, if you need help with anything real-estate related, call us.

We will do our best to help!

Have a Wonderful Holiday and an Amazing New Year!

Komal and Karn

We hope you and your family are enjoying the fall season! If there is anything we can do, as your REALTORS, to make it even more enjoyable, please let us know.

Here’s a quick question for you: How many times over the past month or so have you been asked for a recommendation? For example, a neighbour who asked you to recommend a good florist? Or a friend who asked for the name of a good personal trainer or nutritional product?

Chances are, you probably get asked for recommendations quite often. It’s probably the most common way people find trusted professionals.

In fact, you may get asked to recommend a good REALTOR from time to time. In those situations, we hope we’ve earned your confidence and you feel comfortable passing along our names. With our NEW Referral Program in full swing, we can guarantee you (and your pocketbook) will certainly feel our appreciation & gratitude. Check out our website for further details on this program.

By the way, as active REALTORS, we often get asked to recommend contractors, designers, movers, and other professionals. So if you ever need a recommendation, give us a call. We will ALWAYS do our best to be of service to you, our trusted client!

All the best,

Komal and Karn

September and October are typically BUSY months for many homeowners.

Kids go back to school. Work increases at many businesses as the 4th quarter looms. Major exterior home renovation projects on the go are in the midst of wrapping up and smaller indoor projects may be about to start.

If there’s anything we can do to help with questions, advice or information related to real estate, please give us a call. In fact, that’s the reason we stay in touch with you through these updates and in other ways. We want to continually remind valued clients like you that our services don’t end once we have helped you buy or sell a home. In the months and years in between transactions, we’re dedicated to helping you enjoy your home and understand your real estate options. We are also here to provide you with information and advice on a variety of home related topics.

With that in mind, we compiled the following article on Insulating your Home for Winter!

If you will be using any type of heating this winter, you will want to reduce costs by preventing the heat from escaping. The most likely place for it to escape is through the roof, so insulating the attic is a good place to start. Fiberglass batt insulation is particularly effective  here due to its thickness which helps prevent the transfer of heat. The wooly blow-in type is also effective, but note that both types must have a vapour barrier to prevent condensation damage. Where there is no attic, moisture-resistant rigid foam insulating boards can be installed on the ceiling side of the roof.

Exterior walls, or any exposed underside such as an overhang or an unprotected crawlspace, should also be insulated and will also require a vapour barrier. Depending on access, batts or panels can be applied from the inside, or insulated exterior panelling installed from the outside. Below-grade basement walls are best insulated with waterproof rigid foam panels, to prevent condensation and avoid the risk of moisture damage.

Other common areas of home heat leakage are around and through the doors, windows, air passages, fixture connections and switches, all of which can be sealed up with caulking or spray can foam.

As always, if you have any questions Please get in touch and we’d be happy to help in whatever way possible because that’s what we’re here for!

Komal and Karn

After 13 years with Re/Max Camosun, The Dodd Team has made a move to Sutton Group WestCoast Realty. Both Komal and Karn are greatly forward to bringing their enthusiasm and expertise to the Sutton Team!

The Dodd team has carved a reputation in Victoria for their dedication & outstanding service in Real Estate and it is this reputation that they are bringing to the Sutton Group team.

Komal has worked in the industry for over 32 years. His extensive experience combined with his wealth of knowledge and sharp business acumen has allowed him to build not just a business but also a successful legacy for his sons.

Karn is young and talented, brimming with unique abilities and personal strengths. With 10 years in this highly competitive industry, Karn has become a multi award-winning Realtor, recently winning the prestigious MLS Special Gold Award 2010. In his own words, “there is nothing quite as gratifying as handing over the house keys to a first time buyer; you might not remember who sells you your 4th or 5th home, but your first home is always something special”.

As always, if you have any Real Estate questions, our new contact information is:

Sutton Group WestCoast Realty

103-4400 Chatterton Way

Ph:250-479-3333

info@doddteam.ca

Say you’re interested in learning more about home theatre systems. You may not have any specific plans to buy one, you just have some questions. It would be rather fruitless and tiresome to seek advice on home theatre systems from, say, a Landscape architect.  Wouldn’t it be nice to talk to an expert who has the right information-without feeling pressured to make a purchase?

Of course it would.

In fact, that’s what we encourage valued clients like you to do. We may not be able to help much in the area of home theatre systems, but we can answer your questions about the local real estate scene.

For example, you may be curious about homes currently available for sale in the area. Or you may be wondering how much your current property would sell for on today’s market.

We consider it our job as your REALTORS to be the experts you can trust- during moves, and in-between moves. So when you want to talk to your experts, don’t hesitate to give us a call.

All the best,

Komal and Karn

Why do  “yellow-jacket” wasps disturb picnics, patios and balconies in late summer and fall? What can we do about them? These wasps are normally beneficial to humans as they typically feed on other plant-eating insects. However, these flying foragers are constantly collecting food to feed their ever growing nest.  As the season progresses and their colony gets bigger, their search expands while their patience thins, putting humans at greater risk of being stung.

there are things we can do to keep these annoying and dangerous wasps  a safer distance from our backyards and balconies:

• Know the difference between bees and yellow-jacket wasps (which have a smooth surface and a thin “waist”)

• Check near your home for wasp activity around potential nests. if discovered, call an exterminator for removal.

• When serving outdoors, cover all food and drink, dispose of leftovers, and clean up spills immediately.

• Don’t swat at wasps; even if killed, they may send signals for others to swarm!

• Set up a wasp trap or wasp deterrent; there are different types available in stores or online.

• Be prepared for a sting emergency; keep allergy medication on hand.

So what do you do if you get stung?

Yellow jackets look like honey bees without the fuzz, and unlike honey bees, they will sometimes sting without provocation. You should know how to treat yellow jacket stings because they are initially very painful, and people stung by yellow jackets may develop serious and life-threatening reactions to their venom. First, if a person has a known allergy to bee stings, they should always carry a bee sting kit with them and know how to use it. If you’re caring for a person, or traveling with someone who is allergic to bees, get them to train you on how to use the kit too.

While honeybees often sting as a last defense, and lose their stingers in the process, yellow jackets may sting numerous times, and you may not see a Stinger If there is one, you want to scrape it off, rather than pulling it out. Squeezing the stinger can inject more venom into the sting site, which will at minimum make it more painful.

Some people recommend that you treat yellow jacket stings with ice, since this can help ease pain. Another common recommendation by many medical professionals is to use meat tenderizer in paste on the stings. This actually does assist in reducing pain and may also help reduce swelling. If you don’t have ice or meat tenderizer available, you can use baking powder, a little bit of  vinegar, or even a mud poultice to slightly reduce pain.

HONEYBEE ON LEFT VS YELLOW-JACKET WASP ON RIGHT

Saanichites living south of McKenzie Avenue have had a year to legalize their secondary suite – and 30 homeowners have done just that. But residents outside of the selected study area, including those in neighbourhoods already dense with illegal suites, are still not sure when they’ll be able to legalize their suite.

And as it turns out, council doesn’t know either.

Coun. Dean Murdock is critical of the lack of terms placed on the “selected study” and questions if that title is a misnomer. He says he’s hearing complaints from residents north of McKenzie who want to legalize their suite, but can’t.

“There was no time line (placed) on how we would revisit it, and furthermore, there were no indicators for how we would measure whether or not it was successful, other than we would know based on the number of permits issued or what the uptake was like,” Murdock said.

The councillor is currently door-knocking in preparation for November’s municipal election, and says residents in the High Quadra area have asked what options they have to own a legal suite.

The president of the North Quadra Land Use Association says he’s experienced a lack of concerns from area residents who want a legal suite.

“I don’t know exactly how (Saanich is) going to deal with this issue and how many people are waiting,” said Haji Charania. “To the best of my knowledge, the experience in other municipalities is legalizing suites is met with moot response.” And so far in Saanich, that appears to be the case.

Mayor Frank Leonard says a change to the study would have to be instigated once a report from the planning department is submitted to council, which would happen no earlier than September.

The municipality’s director of planning, however, maintains the request to revisit the issue needs to come from council.

“(The intent of the study) was to focus on this issue in one defined area, take a review of it at some point in time and say, ‘Are there things that we can learn from this?’” said Sharon Hvozdanski. “But there was no specific time set by council in terms of when this matter would come back to them.”

Don Gunn, vice-president of the Gordon Head Residents Association, calls legalizing existing suites a foregone conclusion, because like Charania, he hasn’t heard his neighbours request the ability to legalize their suite.

Leonard suggests those residents outside of the study area who want a legal suite should contact their neighbourhood association. It could potentially expedite the process by bringing the issue to the forefront of the association’s agenda.

nnorth@saanichnews.com

It’s not uncommon for some people to start to feel a little down at this time of year. That’s probably because summer is coming to an end (and it kind of feels like it actually just started with our weather!)

But hey, it’s not over yet! So we hope you a
nd your family have an opportunity to enjoy some relaxation and sunshine before the full weight of the busy Fall season is upon us.

And speaking of busy, this is also the time of year when many homeowners are putting the finishing touches on repairs, renovations and remodelling projects.

Does that include you? If so, we may be able to help.

We may not be able to install new light fixtures, or renovate your bathroom, but we do know many reputable designers, contractors, renovators and other professionals who can. So if you’re looking for a recommendations, give us a call. We may be able to send you a couple of names.

In the meantime, enjoy the remainder of this fabulous summer weather; Summer isn’t over yet (even if the kids have gone back to school already!)

all the best,

Komal and Karn