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Recently Sold Listing 107-2620 Jane Street. Port Coquitlam BC, ,

R2054162 - 107-2620 Jane Street. Port Coquitlam BC, , , CANADAI have just recently sold this listing at 107-2620 Jane Street. Port Coquitlam BC, .

Recently Sold Listing 5-300 Decaire Street. Coquitlam BC, ,

R2041097 - 5-300 Decaire Street. Coquitlam BC, , , CANADAI have just recently sold this listing at 5-300 Decaire Street. Coquitlam BC, .

The changing market

A curious thing appears to be happening in the market in the tricities at least: the detached homes aren't selling at those recently inflated prices. So this year, to state the obvious, is not last year. It's als not the previous ( more than 2 years ago) normal. Realtors have, since January and February, have been pushing clients to list and achieve high sale to list prices and in that time it looked like an even frenzied version of 2015. And in January, February and March - they would have been right. But as more product owned by ever-larger numbers of retiring baby-boomers hit the market, the prices just aren't as attractive (not that they ever were recently). Houses are seen as over priced and are sitting on the market or selling for under asking - gasp! Oh the humanity!

But with the corresponding move of baby boomers to downsize or get into senior or retiree-friendly housing, it is edging out other buyers of the small properties - 2 bedroom condos and smaller townhouses. So for once the moms and pops and uncles and aunts are on the one hand possibly providing you with some capital to help fund your own mortgage albatross, but also beating you to buying what little that you can afford - which is not their house, but a starter property. It is hard to find a decent condo for less than brand new prices in this city now.  

if you want one to rent? Well, fuhgedaboutit. Be prepared to over spend and go in with no subjects to even be considered with all the other same offers. If you are looking to sell your condo - Get in touch coz I know people who will buy. If you are selling to buy, my advice is : buy first. sell later. 

Deciding how much you can afford

Deciding how much house you can afford

Your lender decides how much you can borrow but you decide what you can afford.

Lenders are careful, but they make qualification decisions based on averages and formulas. They won't understand the nuances of your lifestyle and spending patterns quite as well as you do. So, leave a little room for the unexpected ? for all the new opportunities your home will give you to spend money, from furnishings, to landscaping, to repairs.

Historically, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn't be more than 28 percent of the buyer's gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn't be more than 36 percent. (In Canada lenders apply similar formulas to determine how much a buyer can afford.

The Gross Debt Service ratio, or GDS, is not to exceed 32 percent of the buyer's gross monthly income, and the Total Debt Service ratio, or TDS, is not to exceed 40 percent of the buyer's total debt load.) As home prices have risen, some lenders have responded by stretching these ratios to as high as 50 percent. No matter how expensive your market though, we urge you to think carefully before stretching your budget quite so much.

Deciding how much you can afford should involve some careful attention to how your financial profile will change in the upcoming years. In the long run, your own peace of mind and security will matter most.

This information may not be 100% up to date since events happen quickly - so my advice as always, is to consult with a mortgage briker regarding your lending and affordability.  I know a number of super friendly and helpful brokers, and would be happy to refer them to you.