Blog Post

BC Property Assessment by Region [Video]

Katherine Martin • Jan 11, 2016

This is the 2016 British Columbia property assessment overview. Prepared for you by us, BC Assessment, your trusted go-to source for property information.

2016 property assessments are based on property values as of July 1st, 2015. So if you own property in BC, your property assessment will be mailed to you in January, so look for your assessment in the mail. There are some interesting facts to consider for 2016, for example, the total number of properties within BC has increased to about 2 million or 1.06% increase from 2015. The total value of all real estate has increased over 1.3 trillion dollars. That’s an 11.1% increase from 2015, and the value-added from new construction, subdivisions and rezoning alone is equal to 20.3 six billion dollars, an 8.9% increase from 2015.

Let’s take a look at some highlights in BC’s regions, starting in Greater Vancouver where 2016 increases are quite dramatic.

A typical urban residential single detached home is up 15-30 % and climbing compared to last year.
Urban residential strata units, are generally up a relatively modest 10%, and greater Vancouver’s highest assessed home, is nearly sixty four million dollars for 2016.
Greater Vancouver’s urban commercial properties are also up significantly, with typical increases in the 10-25% range for 2016.

Next stop, let’s head further south, here we have included southern parts of Metro Vancouver, such as Richmond and Surrey, along with the usual Fraser Valley Community.

Typical residential single detached homes have increased by 5-25% in urban areas, with changes of minus 5 plus 5% in rural areas.
Residential strata units have generally experienced an increase of 0-10% compared to last year and commercial property increases, are in the 5-15% range.

Now let’s head further east to the Thompson Okanagan region.

Typical residential homes increased anywhere from 0-10% in urban areas, and 0-5% in rural areas.
Changes to commercial property assessments are generally in the minus 5 to plus 10% range.

Next off, let’s head over to the Kootenay Columbia region.

Typical residential homes are experiencing changes of 0-10%, in both rural and urban areas.
Commercial properties are generally changing by minus 5 to plus 5%.

Now let’s head north to the vast northern BC region.

Both residential homes, as well as commercial properties have experienced changes in the range of 0-10%, in both rural and urban areas.

Finally, let’s head back south, down the coast, to the Vancouver Island region.

Across the island typical residential homes have changed in the minus 5 to plus 10% range compared to last year
Commercial properties are generally changing minus 5 to plus 5%

Here’s how each region’s single highest assessed home stacks up for 2016. The Greater Vancouver region, Vancouver Island region, the Fraser Valley region, the Thompson Okanagan region, the Kootenay Columbia region, and the northern BC region. To find out more on the top value of residential properties in your region, visit the top 100 lists for each region and the expanded top 500 list for the entire province at bcassessment.ca.

With our comprehensive approach and innovative technologies, such as street front imagery and 3D modeling, and by using a number of information sources; like building permits, land titles office, real estate transactions, on-site inspection, aerial and street front imagery, and owner reporting through online questionnaires and forms. We prepare fair, uniform, and equitable assessments. We want to make sure we give you the best customer service and most accurate information possible. So, look for your assessment in the mail arriving in January. We encourage you to compare it online to other property values in your area, using our evalue BC service at bcassessment.ca.

If you haven’t received your assessment, or if you have more questions about your assessment after using our services, call us at 1 866 value BC. If you want to file an appeal, you need to file by the February 1st, 2016 deadline. We value conversation, so start the conversation, by following us on Twitter, Facebook, LinkedIn, and YouTube. We are BC Assessment your trusted go-to source for property information, and we value BC.

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Katherine Martin

Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842

Understanding a Spousal Buyout Mortgage

By Katherine Martin • 08 May, 2024

If you’re going through or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property and buy out your ex-spouse. If you’re like most people, your property is your most significant asset and is where most of your equity is tied up. If this is the case, it’s possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program. It’s called the spousal buyout program. Here are some of the common questions people have about the program. Is a finalized separation agreement required? Yes. To qualify, you’ll need to provide the lender with a copy of the signed separation agreement, which clearly outlines asset allocation. Can the net proceeds be used for home renovations or pay off loans? No. The net proceeds can only buy out the other owner’s share of equity and/or pay off joint debt as explicitly agreed upon in the finalized separation agreement. What is the maximum amount that you can access through the program? The maximum equity you can withdraw is the amount agreed upon in the separation agreement to buy out the other owner’s share of the property and/or retire joint debts (if any), not exceeding 95% loan to value. What is the maximum permitted loan to value? The maximum loan to value is the lesser of 95% or the remaining mortgage + the equity required to buy out other owner and/or pay off joint debt (which, in some cases, can total < 95% LTV. The property must be the primary owner-occupied residence. Do all parties have to be on title? Yes. All parties to the transaction have to be current registered owners on title. Your solicitor will be required to confirm this with a title search. Do the parties have to be a married or common-law couple? No. Not only will the spousal buyout program support married and common-law couples who are divorcing or separating, but it’s also designed for friends or siblings who need an exit from a mortgage. The lender can consider this on an exception basis with insurer approval. In this case, as there won’t be a separation agreement, a standard clause will need to be included in the purchase contract to outline the buyout. Is a full appraisal required? Yes. When considering this type of mortgage, a physical appraisal of the property is required as part of the necessary documents to finalize the transaction. While this is a good start to answering some of the questions you might have about getting a mortgage to help you through a marital breakdown, it’s certainly not comprehensive. When you work with an independent mortgage professional, not only do you get a choice between lenders and considerably more mortgage options, but you get the unbiased mortgage advice to ensure you understand all your options and get the right mortgage for you. Please connect anytime; it would be a pleasure to discuss your needs directly and provide you with options to help you secure the best mortgage financing available. Also, please be assured that all communication will be held in the strictest of confidence.

Why Downpayment Source Matters

By Katherine Martin • 01 May, 2024

If you’re looking to purchase a property, although you might not think it matters too much, the source of your downpayment means a great deal to the lender. Let’s discuss the lender requirements, what your downpayment tells the lender about your financial situation, a how downpayment helps establish the mortgage loan to value. Anti-money laundering Lenders care about your downpayment source because, legally, they have to. To prevent money laundering, lenders have to document the source of the downpayment on every home purchase. Acceptable forms of downpayment are money from your resources, borrowed funds through an insured program called the FlexDown, or money you receive as a gift from an immediate family member. To prove the funds are from your resources and not laundered money from the proceeds of crime, you’ll be required to provide bank statements showing the money has been in your account for at least 90 days or that you’ve accumulated the funds through payroll deposits or other acceptable means. Now, if you’re borrowing all or part of your downpayment, you’ll need to include the costs of carrying the payments on the borrowed downpayment in your debt service ratios. If you’re the recipient of a gift from a direct family member, you’ll need to provide a signed gift letter indicating that the funds are a true gift and have no schedule for repayment. From there, you’ll need to show the money deposit into your account. Financial suitability Lenders care about the source of the downpayment because it is an indicator that you are financially able to purchase the property. Showing the lender that your downpayment is coming from your resources is the best. This demonstrates that you have positive cash flow and that you’re able to save money and manage your finances in a way that indicates you’ll most likely make your mortgage payments on time. If your downpayment is borrowed or from a gift, there’s a chance that they’ll want to scrutinize the rest of your application more closely. The bigger your downpayment, the better, well, as far as the lender is concerned. The way they see it, there is a direct correlation between how much money you have as equity to the likelihood you will or won’t default on their mortgage. Essentially, the more equity you have, the less likely you will walk away from the mortgage, which lessens their risk. Downpayment establishes the loan to value (LTV) Thirdly, your downpayment establishes the loan to value ratio. The loan to value ratio or LTV is the percentage of the property’s value compared to the mortgage amount. In Canada, a lender cannot lend more than 95% of a property’s value. So, if you’re buying a home for $400k, the lender can lend $380k, and you’re responsible for coming up with 5%, $ 20k in this situation. But you might be asking yourself, how does the source of the downpayment impact LTV? Great question, and to answer this, we have to look at how to establish property value. Simply put, something is worth what someone is willing to pay for it and what someone is willing to sell it for. Of course, within reason, having no external factors coming into play. When dealing with real estate, an appraisal of the property will include comparisons of what other people have agreed to pay for similar properties in the past. You’ll often hear of situations where buyers and sellers try to inflate the sale price to help finalize the transaction artificially. Any scenario where the buyer isn’t coming up with all of the money for the downpayment, independent of the seller, impacts the LTV. All details of a real estate transaction purchase and sale have to be disclosed to the lender. If there’s any money transferring behind the scenes, this impacts the LTV, and the lender won’t proceed with financing. Non-disclosure to the lender is mortgage fraud. So there you have it; hopefully, this provides context to why lenders ask for documents to prove the source of your downpayment. If you’d like to talk about mortgage financing, please connect anytime; it would be a pleasure to work with you.