1. By Sharon Jensen & Jay Xia
Real Estate Seminar
International students / First time buyers
Helping YOU is what WE do!

2. Please Welcome!
Today’s Speakers
Sharon Jensen
Realtor / Professor in VIU
Jay Xia
Branch manager at CIBC

3. Table of Content
Market Trends &
Overview
Finance & Mortgage
International students
& First time buyers

4. I am happy with renting..
Pros & Cons of Renting
Advantages of Renting Disadvantages of Renting
 More flexibility
 Normal repairs and maintenance
costs are your landlord's
responsibility
 No big financial responsibilities
 Unable to renovate or
make changes
 Dealing with different
landlords
 The money spent on
renting called “Dead
money”

5. Market Trends
What drives Real Estate Market on Vancouver Island?
Baby boomers moving to BC for retirement
Affordability for ocean front houses / condos
Canadian dollar depreciation attracts tourists from US
Oil crisis in Alberta
Foreign investors

6. Market Trends
Nanaimo Average Home Sales Price
1982-2016
71,944
162,773
365,173
413,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Sales Statistics From Vancouver Island Real Estate BoardYear Price
2000 150,410
2001 148,746
2002 161,428
2003 182,108
2004 219,872
2005 267,351
2006 307,490
2007 343,168
2008 365,173
2009 351,286
2010 363,985
2011 359,821
2012 356,793
2013 350,711
2014 364,441
2015 397,000
2016 413,000

7. February Statistics

8. Market Trends
What makes a city stable?
Hospitality Education
Tourism Retirement

9. Market Trends
Can the property be sold later?
Depreciation???
OR
Appreciation

10. Market Trends
Investment Opportunities? Hot spots in Nanaimo
North Nanaimo Ocean Front Condos
University District Lots for Development

11. What I can buy for $65,000?
5105 BOWEN RD

12. What I can buy for $104,000?
2578 HIGHLAND BLVD

13. What I can buy for $199,900?
2560 DEPARTURE BAY ROAD

14. Consideration to take into account
What I do not know about buying the property?
Down payment
Strata Fee
Taxes
Lawyer
Realtor
Property Transfer Tax
Insurance
Inspection

15. Mortgage and Finance
Mortgage Eligibility
International students (no income)
1.Down – payment: 35% of the property value
2. Income: parents income qualified

16. Local / International Students (with income)
1. Down Payment: 5% of the property value
2. Total Debt to Service Ratio of 40%
All Liabilities/ Gross Income = 0.4
* Parents can be co-borrowers / co- signers

17. New Regulations
 If the price of the property is below $500,000 - minimum down payment
required is 5%.
 If the price of the property above $ 500,000 - minimum down payment
required is 5% on the $500,000 and 10% on the rest.
Example: Value of property $ 600,000 then:
500,000 * 0.05 = 25,000
+
100,000 * 0.1 = 10,000
Total: $ 35,000

18. Mortgage and Finance
Mortgage Rates: Fixed and Variable
Term Fixed Variable
1 YR 2.09 % 3.99 %
2 YR 2.14 %
3 YR 2.14 % 2.14 %
4 YR 2.39 %
5 YR 2.34 % 2.1 %

19. Mortgage and Finance
 What is Refinance?
 Can I pay mortgage earlier?
 Do I have penalty?
 Can I take a mortgage for the renovation?
Mortgage Refinancing

20. Mortgage and Finance
The application process
What documentation I have to provide to apply for the
mortgage?
Why I am eligible for a mortgage but not for a loan?

21. Mortgage and Refinance
Mortgage Calculator
https://www.cibc.com/ca/mortgages/calculator/mortgage-affordability.html

22. International Students
What to do with the property after I move
from Vancouver Island?
• What is my ROI?
• What does it mean to be a
seller?
Sell
• What income can be
generated?
• Additional expenses?
Lease

23. International Students
Tips and additional Information

24. Questions?
Helping YOU is what WE do!