Canadian Funding Corp Reviews CMHC Affordable Housing Reports

Canada has of course also been going through a real estate crisis, just as the United States has. However, it’s perhaps worth noting that the Edmonton banks are once again beginning to offer mortgages. Of course, it is only to be expected that they are now a little more cautious than before with regards to the way they view a property as well as the borrower. Nonetheless, this is an ideal time to apply for a mortgage given that the interest rates are incredibly low. Furthermore, it is said that the housing market has by all accounts bottomed out, so if this is the first time you’re contemplating purchasing a property, you’ve come along at just the right time in order to get the lowest possible price, together with the lowest interest rates.

Surprisingly enough, even though the government phased out 100% loans, providing you have a good credit history, you can still obtain 95% financing. What this means is; apart from attorney fees, you will only be required to make a down payment of 5%.

Government guaranteed mortgages are still out there too for Edmonton mortgages. A few of the rules have changed, but they are not deal breakers by any means. For instance, the maximum amortization period has changed slightly moving down from 40 years to 35 years. Government backed mortgages will now require that a 5% down payment needs to be paid now, and there is a minimum credit score requirement now.

These steps have essentially been taken in order to safeguard Canadian citizens from witnessing the same mess as is being seen by U.S. citizens. Unlike the current feeling in the United States, the housing bubble in Canada has not yet burst so to speak, particularly in Edmonton because of conservative mortgage lending in the past.

The Canada Mortgage Housing Corporation (CMHC) mortgages offer many flexible financing tools and options, such as extended amortization periods, and the single advance plan as well as progress advances are available. Also do not ever forget that those mortgages offer portability for your next home should you have to move! Also, remember that you will be given a break for purchasing an energy efficient home in Edmonton.

Other good news circulating in the mortgage market is that as from June, 2009 residential starts actually saw an increase for the second consecutive month, whereas in the United States, residential housing starts are all but non-existent.

The Canada Mortgage Housing Corporation recently reported that the overall vacancy rate regarding senior housing in standard units has remained steady at 5.9% since the beginning of the year. Additionally, the average rent for a standard retirement home unit has remained at approximately $2,334 per month in Alberta.

We do however have one thing in common with our southern neighbors in that we also have access to hard money lenders in Edmonton. In fact, it is common knowledge that these lenders have been freeing up a considerable amount of cash in recent times and as a result, mortgages are now available but they come with a loan to value ratio of approximately 70/30 which of course is quite expensive, both in terms of interest and points. For this reason, unless you have been refused a mortgage by the banks, you would be well advised to avoid such private lenders altogether.

http://firstforextrading.com/mortgages-in-edmonton-3643

brought by Moishe Alexander, CFC canadian funding corp CEO

http://lovepalmspringshomes.com/?p=316

reviewed by Moishe Alexander

Angela Self – Globe and Mail

I’ve had the same rent-versus-own discussion with a close friend of mine for years. Every now and then she’ll see a new statistic from the Canadian Real Estate Association about where prices are headed and rethink the decision she made just months before.

My advice to her today is: it’s time to get off the fence. Although mortgage rates rose last week, money is still cheap right now. Given the slowdown in the housing market, which is also showing signs of picking up, there is a slim selection in housing stock and less time to make a decision and put an offer on a home – with intense competition. And it might get worse.

A combination of other factors means it is the perfect time for property virgins to make their move. The federal government’s 2009 operating budget has contributed two important ingredients to the mix: the option to withdraw as much as $25,000 from your RRSP (compared to $20,000 in 2008) and a First-Time Home Buyers’ Tax Credit that provides up to $750 in tax relief when buying a starter home.

If thinking about becoming a home owner for the first time makes you nauseous, don’t worry – that’s natural. Getting into the real estate market is a good idea, as long as you do your research, view it at a long-term investment and have the money to do so.

Let’s start with the most important element – getting the green stuff. The first step in the home-buying process is getting pre-approved by a mortgage broker.

Once you get the green light you may be compelled to open-house hop down the ritziest street in your hood. While test-driving your dreams is OK, touring too many homes beyond your budget is a waste of time. If you’re serious, search only in your approved price range and know that starting small and building equity will give you a chance to upgrade in the future.

If you’re trying to estimate how much you can reasonably afford, take this as a general rule: according to the Canada Mortgage and Housing Corporation your monthly housing costs – including mortgage principal and interest, taxes and heating expenses – shouldn’t be more than 32% of your gross household monthly income (for the math-weary: that’s your annual gross salary multiplied by 0.32 and divided by 12).

Equally – if not more – important is your credit score. Ranging from 300 to 900, it determines how much interest you’ll likely pay when you apply for a loan. The higher your score, the lower the risk creditors will consider you – and the less interest you’ll pay. A low interest rate could translate into thousands in savings over the life of a loan.

According to myfico.com, a score of 720 or higher is ideal. You can review your score – which is calculated by a credit bureau based on personal financial information – at www.transunion.ca or www.equifax.ca for about $20.

It’s possible to buy a home for as little as 5% down, but anything less than 35% means you’ll need to have your mortgage insured by a third party. Insurance costs can be paid in a lump sum at the time of purchase or worked into the principal balance.

CMHC is the main mortgage insurer in Canada. To see the full table of premiums, click here.

When you broach the subject of buying property with your broker or banker he or she will tell you what you can afford. Immediately aim to spend less. The last thing you need as a first-time buyer is to be house-poor. Remember, you’ll need money to pay closing fees (which can be 1.5% to 4% of a home’s value), as well as any unexpected costs that crop up (one leak in the roof could mean a flood of new expenses).

There is a great downloadable Excel spreadsheet that calculates your monthly expenses (including property taxes and condo fees), as well as tallies your land transfer tax. It even has different sections depending on whether or not you are self-employed or not. Download it here.

In terms of doing your research, don’t get wrapped up watching national housing averages or analyzing what the six o’clock news has to say about the market. The only market you should pick apart is the neighbourhood you want to move to. Using national stats to determine trends in your area is like comparing condos to townhouses. Real estate changes from district to district, sometimes from street to street.

A qualified realtor will help you with research and connect you to the right team (lawyer, inspector, mortgage broker). Always work with a realtor as a first-time buyer. There’s too much you don’t know to go it alone, plus you don’t pay commissions – the seller does.

Still hanging out on that fence? Click over to www.myhomeplanner.ca for a rent-versus-own calculator.

Emotion has no place in purchasing property, especially as a novice buyer. You’ll feel more confident in your decision if you simply stick to working the numbers, doing your research, gathering a good team.

Then you can do all the sitting around you want – as a home owner on your very own fence.

reviewed by Moishe Alexander, CFC CEO

http://www.jeffreyteam.com/blog/toronto-real-estate-market/get-off-the-home-owning-fence/