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Canadian Mortgage Rules

November sales in Calgary Real Estate up 15% over last year

Nov 2017 Calgary real estate stats

When more mortgage rules were announced for uninsured mortgages last month, I thought it might precipitate a spike in real estate sales in Calgary.  People just don’t want to pay higher interest rates, and with the threat of new buyers being forced into homes in a lower price bracket, and in a neighbourhood they didn’t want to live in, people reacted.

The November 2017 stats were released on Dec 1 by the Calgary Real Estate Board (CREB) showing that sales are up 15% over November 2016 - proving my point.  Real estate sales were up to 1,411 units, with improvement in numbers across the board.  The majority though were in homes priced under half a million dollars.

Why Sales Are Moving

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Canadian RRSP Home Buyers Plan

If you are interested in purchasing a home in Calgary, ( search Calgary MLS Homes for sale) you might want to take advantage of the Home Buyer’s Plan option that has been made available by the federal government. With this plan, you can use up to $25,000 of your RRSP savings to help finance the down payment on your home. Or, if you are a couple that is looking to buy a home in Calgary, you can use your RRSP savings for up to $50,000 toward a down payment. Before you take advantage of this option, however, it is important to understand how to qualify as well as the pros and cons of utilizing your RRSP savings as a down payment on a home. 

How to Qualify to Use RRSP Funds for a Down Payment on a Home 

In order to use your RRSP funds toward a down...

Another Round of Mortgage Rules affect Calgary Homes for Sale

new-mortgage-rules-calgary-homes-for-saleAnother round of mortgage tightening is coming, meaning, more people looking for Calgary homes for sale will be forced to by less house.

It was just announced that the Office of the Superintendent of Financial Institutions (OSFI) will be implementing more stringent guidelines and implementing yet another stress test to make sure new home buyers have enough capacity to replay their mortgages.

This follows on the heels of last year’s new mortgage rules which were also implemented to make sure new home buyers can deal with possible increases in interest rates when renewal time comes.  It reduced the purchasing power of many people in Calgary looking for their first home.

When they come into...

Government of Canada Announces New Mortgage Qualifying Rules

Government of Canada Announces New Guidelines Affecting Mortgage Qualifying Guidelines 

The Government of Canada has announced some changes to the guidelines affecting mortgage insurance that can have a significant impact on homebuyers and how much they can borrow for a mortgage loan. With these changes going into effect on October 17th, those who are thinking about purchasing a home may want to get the homebuying process started before the new changes go into effect if they hope to increase the housing options that are available to them for purchase. 

Understanding Mortgage Insurance 

According to Canadian federal statutes, mortgage lenders are required to purchase mortgage default insurance for homebuyers who do not make a down payment that is at least 20 percent of the property purchase price. Also referred to as high loan-to-value or high-ratio insurance, this coverage protects the lender if the homebuyer defaults on the loan. Providing...