Another US long weekend is upon us with Martin Luther King Day falling on Monday, January 16^th.   After an unusually busy holiday period for real estate and mortgages, we may see some decent activity from US clients this weekend.  Please remember that for qualifying US residents, financing is available at up to 80% on the first $750k (and 60% of the remaining balance)at very good rates.

In Europe this week, successful bond auctions in Italy & Spain saw significant decreases in yields which will result in more manageable debt servicing costs for both countries.  This positive development may be tempered by new concerns about negative economic indicators coming out of Germany.   Possible recessionary signs in the EU’s strongest economy will make the markets continue to be nervous until more sustained positive news comes out of the region.  To that end the European Central Bank did not move interest  today but many pundits are calling for the lowering of rates at their next announcement.

In Canada, a couple of the big banks are warning of potential decreasing house prices in Toronto and Vancouver.   As I see it, the good news in this is that Whistler has already seen price decreases and should be a good place for long term capital appreciation when compared to most markets in Canada.  Some of the major lenders have started to further decrease fixed rates.  This may become relatively short term rate war with consumers winning if they are able to take advantage within the applicable time period.  Variable rates remain relatively high when compared to fixed rates and are currently not a good option for most clients.  Canadian dollar  is still hovering around $0.98 but despite recent signs of stability, expect to see volatility return over the next few months.

Jason McLean  AMP
jason@garibaldimortgage.com

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If you are a non-resident and are thinking of buying real estate in Canada, here are some points about arranging financing you should know:

General:

• The industry standard for lending to non-residents is 65%, however in some cases exceptions are made up to 75/80% depending on the property, available supporting documents, and the overall qualification of the applicant(s).
• Rate guarantees are often available between 90 to 120 days.
• Approvals can usually transpire via fax and email. Original documents do not have to be couriered.

Supporting Documents Needed:

• Confirmation of income. This can vary depending on the country you are filing tax returns in & what you do for a living. Usually providing your last 2 years tax returns is a requirement along with a current pay stub(s).
• Verification of assets via bank/investment statements to confirm the source of your down payment + other assets.
• Existing mortgage statements and/or rental income confirmation if other real estate is owned.
• Banker’s reference letter confirming the length of time you have been with your bank and if all dealings have been as agreed. Usually a minimum of a 3 year history is needed.
• Or, copy of your credit report from your country of residence. UK residents can obtain copies of their report by going to www.equifax.co.uk. US residents need not worry, we have access to US Equifax.
• ID usually by way of copies of passports and driver’s licence.

For any other questions or information, please do not hesitate to contact one of our brokers @ www.garibaldimortgage.com.

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