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

The key difference between Canada and other markets is that in Canada
the cost of bad home loans have been socialized in advance. In Canada, we didn’t need to disguise our sub-prime excesses within dubious mortgage-backed securities. Why create an alphabet soup of bogus AAA paper when our government provides seemingly limitless quantities of underpriced mortgage insurance? As a formula for creating housing froth it has been virtually unbeatable. Housing markets may be cratering throughout the world, yet one observes a perverse new high in Canadian real estate prices in May of 2009.

The key to Canada’s bubbly housing success been the CMHC . The Canada Mortgage and Housing Corporation writes guarantees on most Canadian mortgages originated at greater than 80% Loan-to-Value. This agency has been on a massive expansion binge of late. In 2008, a year of synchronized global recession, the CMHC expanded its
mortgage insurance in force by a whopping 18%. CMHC now guarantees $407.7 Billion of high loan-to-value
mortgages and an additional $233.9 Billion of securitized
mortgages.

In all, the CMHC mortgage guarantees are equal to slightly more than half of Canada’s GDP. Against this total, CMHC has miniscule equity capital of $8.1 Billion. How is it that more than $630 Billion of dodgy
mortgages can be guaranteed by an entity posting just over 1% in equity? This is a question that curiously appears to have escaped the notice of Canada’s top notch financial regulators.

The role of
the Canadian banks has been to commit capital to CMHC-insured
mortgages as quickly as they receive applications. It is not mortgage lending in the traditional sense, more like underwriting government bonds and taking a 150 basis point spread as compensation. In this way, the Canadian real-estate bubble looks a lot like its American cousin. Home loans are being written for those who likely cannot pay by lenders who pass through the credit risk to a third party. However, in the case of Canada, the third party is our own government and not the Chinese or Saudis who snapped up American mortgage paper.

http://thecomingdepression.blogspot.com/2009/07/canadian-real-estate-and-banks-ready-to.html

bad news reviewed by Moishe Alexander, CFC CEO

We’ve seen several articles over the last week or so that point to positive developments in the Palm Springs area housing market. Here’s a summary of what we’re experiencing. We’ve also included a link (found on our Facebook business page, “Palm Springs California Real Estate: Love of the Desert”) to a Desert Sun article that was quite comprehensive and well done.

Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®. This despite median prices falling 30.4% (sales increased 35.2%) compared to the same time a year ago for California statewide.

Locally, although median price fell 46.1% ( sales rose by 38.2% from a year ago), the median price is up slightly for the month of May ‘09 over April ‘09, confirming the upward trend. The inventory declined from the prior month for the fourth straight, as year over year sales remain brisk. The inventory of homes continues to drop, falling to a 4.2-month supply in May, compared to 8.7 month supply in May 2008.

California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.

We are beginning to see signs of a price stabilization and even a small upward tick as inventory continues to trend downward.

“With affordability for first-time home-buyers at a record high, sales of existing single-family homes continued to remain above the 500,000 level for the ninth consecutive month,” said James Liptak, president of the California Association of Realtors.

“Buyers are beginning to realize that the combination of favorable home prices, historically low mortgage rates and first-time home buyer credits may not align again for many years.”

Greg Berkemer, executive vice president of the California Desert Association of Realtors, said, “Certainly, the housing market is affected by what goes on in the economy,” he said. “But in the housing sector alone, the last three to four months have been encouraging: We’re starting to see some price stabilization.”

That is the result of four months of slightly declining inventory, historically low interest rates, tax credits and price points, Berkemer said.

Unsold inventory tracked by more than 90 local Realtor associations statewide also fell to 4.2 months in May, the report noted, compared with the 8.7 month it would have taken to deplete the supply of homes on the market in May 2008.

“Inventory levels are well below the long-run average of seven months, which may account for the increase in median price,” said Leslie Appleton-Young, the association’s chief economist.

Capitalizing on these encouraging developments, we are also seeing the return of the Canadians, who are snapping up property in the United States. The Canadian “Loonie” is at par with the U.S. dollar for the first time since 1976-an exchange rate that makes homes and condos in the U.S. look like a real deal.

Canadian investment in U.S. real estate more than doubled in one year, from 11 percent in 2007 to 23.5 percent in 2008, making Canada the largest foreign real estate investor in the U.S., according to the National Association of REALTORS®.

Mark Dziedzic, a former financial planner from Toronto, currently living in Arizona, says, “When the Loonie hit a $1.10, it created a real buzz for Canadians, not only those looking to buy second homes, but we’re also seeing them buying purely from an investment standpoint.”

Need More Incentive to Buy?

Use Tax Credit for Downpayment

As we discussed in our last post, the tax credit can be used as additional down payment Qualified, first-time home buyers using a Federal Housing Administration (FHA)-insured mortgage now can apply the $8,000 federal tax credit toward their down payments, the Dept. of Housing and Urban Development (HUD) announced today. Currently, borrowers applying for an FHA-insured mortgage are required to issue minimum down payments of 3.5 percent. Previously, FHA-approved lenders were not allowed to monetizethe tax credit as part of the 3.5 percent; however, under the new guidelines announced this afternoon, borrowers now can use the tax credit as additional down payment, or for other closing costs. For more information, please visit: www.hud.gov and www.car.org.

C.A.R. launches Mortgage Protection Program

To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

This program can provide an important safety net for first time buyers. But what about everyone else who fear sudden unemployment? Contact us to learn about other possibilities.

 Sources: Daily Real Estate News: The Wall Street Journal, and California Association of Real Estate and The Desert Sun

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

reviewed by Moishe Alexander

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/

“Vacancy rates and rent levels in the seniors’ housing market reflect a different market makeup than the traditional rental market,” said Bob Dugan, Chief Economist for CMHC. “The demand for seniors’ housing is expected to increase as the baby boom generation ages. The anticipation of this eventual increase in demand, has spurred the construction of seniors’ units ahead of actual demand. This, in turn, has led to an average vacancy rate of 9.2 percent in seniors’ residences that tends to be higher than in the traditional rental market.”

The national vacancy rate applies to standard spaces, which are defined as:

* private units such as a bachelor, one-bedroom or two-bedroom apartment occupied by a single individual or a couple; one unit is considered as one standard space;
* semi-private units; one unit is considered as two standard spaces;
* ward units; one unit is considered as three standard spaces or more;

The vacancy rate is calculated for all standard spaces regardless of whether the occupant participates in a meal plan or requires medical services. The vacancy rate covers only spaces that accommodate residents who receive less than 1.5 hours of care per day.

Vacancy rates varied considerably across the country, from a low of 3.4 per cent in Saskatchewan to a high of 18.9 per cent in Newfoundland and Labrador. The vacancy rate in Ontario (13.3 per cent) was above the national figure, while the rates in British Columbia (7.5 per cent) and Quebec (7.9 per cent) were below average.

Average monthly rents in the seniors’ market are higher than traditional market rents, reflecting the additional services and amenities that residents of these structures receive. The average rent for bachelor/private units where meals are included was $1,774 per month. Average rents ranged from a high of $2,519 per month in Ontario to a low of $1,271 in Quebec. Differences in average rents reflect, in part, the varying prevalence of services and amenities in each province.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

Information on this release:

Andrea Scott
CMHC
Media Relations
Tel.: 613-748-4075
ascott@cmhc-schl.gc.ca

Backgrounder

* CMHC conducted its first National Seniors’ Housing Survey in February and March 2009. Previously, CMHC had regional seniors’ reports in B.C., Ontario and Quebec, which were published annually.
* The new national survey was conducted in all 10 provinces and in all centres regardless of size, which had a residence meeting the eligibility criteria.
* The survey targeted private and non-profit residences where the majority of residents were 65 years of age or older and had access to additional services not offered in traditional rental structures. To be eligible for the survey, a residence must provide an on-site meal plan or on-site medical services. Virtually all residences surveyed provided an on-site meal plan. Other amenities and services that were popular in some of the residences included on-site medical services (57.8 per cent), transportation services (44.2 per cent) and 24 hour call-bell service (92.0 per cent). Note that the survey excluded nursing homes and long-term care facilities.
* Across Canada, some 43 per cent of standard spaces in the seniors’ housing market rented for less than $1,500 and 22.0 per cent of spaces rented for $2,500 or more per month.
* Some 176,845 seniors lived in the 2,464 residences surveyed, capturing 8.2 per cent of the Canadian population at, or above, the age of 75.

http://www.cmhc.ca/en/corp/nero/nere/2009/2009-06-22-0815.cfm
reviewed by Moishe Alexander, CFC CEO

March 28, 2009 — According to Moishe Alexander, CEO of the Canadian Funding Corporation, the construction of 32 new apartments for low-income seniors was announced today by the provincial and federal governments. The new Hampton-based units will be funded under Phase III of the Canada – New Brunswick Affordable Housing Agreement.

Social Development Minister Mary Schryer, who is also minister responsible for housing, and Fundy Royal MP Rob Moore made the announcement.

“We are pleased to join our partners in these projects to help increase the availability of high-quality and affordable homes for low-income seniors in the Hampton area,” said Schryer. “The creation of more affordable housing is part of this government’s efforts to help seniors be active and healthy members of local communities.”

The $3.5 million project at 24 Robb Ct. is expected to be completed by July 2009.

The housing units are being developed by Ossekeag Place of Hampton United Church Inc, a non-profit corporation. The project will receive funding of $480,000 under the Federal Affordable Housing Trust to offset construction costs, as well as close to $700,000 in rent supplements from the Province of New Brunswick for 16 of the 32 units.

“The Government of Canada is committed to making affordable housing available in New Brunswick and across Canada for those who need it most,” said MP Moore. “Seniors in Hampton will now have access to quality, affordable housing, while remaining involved in their community and close to family and friends.”

MP Rob Moore was speaking on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation.

Funding is available to private non-profit organizations, co-operatives, and community or private developers interested in developing projects for low- to moderate-income families, seniors, non-elderly singles, disabled persons and persons with special needs.

Moishe Alexander added that this project will be built to high energy-efficiency standards, and it will involve consultation with Efficiency NB. Builders of affordable housing projects for low-income individuals may receive an incentive of $2,000 per apartment unit if the building is heated by low greenhouse gas emission technologies as approved by Efficiency NB.

For more information, please see:
http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-03-28-1300.cfm

The success of an earlier project led the Horizon Housing Society and its two joint venture partners, the Calgary Homeless Foundation and the Calgary Home Builders’ Foundation to approach the City for assistance securing another site. The Bob Ward Residence, a 61-unit residence that opened in 2003, has met all partners’ expectations and has encouraged them to repeat that success.

The people served by Horizon and its partners are vulnerable to homelessness or being relegated to substandard and unsafe housing. The City agreed to the Horizon partnership’s request and provided a site that was appropriate for medium-density residential development at 17th Street and 30th Avenue S.E. in the Inglewood community. Inglewood is an inner-city community close to the downtown and the Bow River and is served by an elementary school, public transit, a park and bird sanctuary.

The Affordable Housing Solution

Alice Bissett Residence is a 114-unit complex that will provide affordable housing and support services for a diverse group of residents. Construction on the project started in 2007 and will be completed in 2009. It has been named in honour of the mother of a very generous donor to the project. While the project faced initial opposition from the immediate neighbourhood,  the partnership’s proven track record eventually overcame concerns.

Several buildings will occupy the site once the project is completed: a three-storey 103-unit apartment building with a five-bedroom apartment “pod” and 10 two and three-bedroom semi-detached townhouses. The apartment building’s pod is for five brain-injured tenants who will receive round-the-clock support from the Universal Rehabilitation Service Agency.

The seniors units will be allocated through the Kerby Centre, another Horizon partner, which has been in existence since 1973, and provides a wide variety of services and programs for seniors including housing referrals.

The Calgary Housing Company will select and refer families for the townhouses. In addition, the Accessible Housing Society will refer tenants with physical disabilities and the Canadian Mental Health Association will refer people with mental illness. The funding for the Alice Bissett Residence reflects the base of support in Calgary for eliminating homelessness.

The Canadian Funding Corporation says that the project will not need a mortgage loan. The equity donations equal the gross capital budget of just under $20 million. CMHC and the government of Alberta provided $12.3 million through the Affordable Housing Initiative. The City of Calgary leased the land, valued at $2 million, for nominal rent to Horizon. The Calgary Homeless Foundation raised $4 million from private sector donors. The Calgary Home Builders’ Foundation contributed another $1 million and provided project management expertise during the planning stages and construction. Alberta Gaming contributed $250,000. Horizon was able to add $200,000.

The rents for the project will be in the range of $330 for the one-bedroom units.

The rents for three-bedroom townhouse units have not been set yet. Planning for the project began in 2004; completion and occupancy of the apartment building is projected for early summer 2009. The row houses will be finished soon after.

Parkbridge Communities Inc. offers manufactured homes as an affordable, practical alternative to site built housing. With a focus on Adult Lifestyle communities, Parkbridge offers a wide range of community and housing choices in its many developments across Canada.

The Affordable Housing Solution At Albion Sun Vista, in Greely, a community at the south end of Ottawa, homes range from 83 to 140 m2 (888 to 1,511 sq. ft.). They are manufactured by Guildcrest Homes, of Morewood, Ont., and Quality Engineered Homes Ltd., of Kennilworth, Ont., and then trucked to the site for finishing.

According to the Canadian Funding Corporation, purchasers buy the houses and lease the land (usually 15×30 m [50×100 ft.] lots) from Parkbridge. Land lease rates range from $380 to $500 per month and include water and sewer. The 21 year leases are renewable at the end of their term and are protected under the Tenant Protection Act of Ontario. A percentage of the monthly lease payments are used to build and maintain a community centre, as well as to preserve green spaces, ponds and wetlands. The payments also cover snow removal, and—at an added cost—households can arrange for additional services that include lawn mowing and other basic lot maintenance.

Parkbridge took ownership of the site in 1999 and is planning a multi-phase development. As at the end of 2008, 150 units in the first phase and part of the second phase have been built.

In August 2002, when much of the first phase was marketed, the 271 m2 houses sold for $119,900, affordable for households with an annual income of $45,000 or more. The 461 m2 houses were priced at $169,900, affordable for households with an income of $60,000.

The prices, which were $8,500 to $15,000 below the local market prices, were accessible to households making between 79 per cent and 105 per cent of the National Capital Region median income. As at the beginning of 2009, prices range from $179,000 to $229,000.

The homes are typically one or two-bedroom designs, and other models and floor plans are available.

Once constructed, the houses arrive in two or more modules with the option of adding a garage or sunroom, or both, at an extra cost. Each house is placed on a poured concrete foundation and has a crawl space of about six feet in height. The entire process of ordering, building, shipping and assembling the house takes 12 to 14 weeks regardless of season.

Manufactured houses have the potential to offer savings compared to the site building process. Very few materials are wasted during construction because of the use of extremely precise measurements and tools in a factory environment. Also, theft of construction materials, a major concern (and cost) for on-site construction, is virtually eliminated.

Moishe Alexander, CEO of Canadian Funding Corp mentioned that the factory-built process offers superior air sealing, which means less air leakage and more economic heating and cooling costs. This keeps energy consumption and operating costs down. In addition, factory building can reduce the risk of some long-term repairs being needed, since it eliminates the chance of the house or its materials being exposed to the elements before it is completed. This reduces some of the warping, rotting and cracking that many buildings experience over time, meaning lower maintenance costs in the long run.

The Affordable New Home Development Foundation is a registered non-profit organization created in 1999 to educate and support families and individuals who want to buy their first home but, for various reasons, cannot access the traditional marketplace.

The Foundation works closely with the homebuilding industry, the financial community, governments and the community to design, finance and build homes that are affordable and to develop alternative forms of homeownership.

The Foundation works with individuals and families whose annual household incomes are $52,000 or less. Families and individuals in this income range often pay rents approximately the same as monthly principal and interest payments; however, because of real or perceived barriers, they are not able to purchase a home through the normal channels. The Foundation works with them to help overcome these barriers, leading to the purchase of a new home.

The Canadian Funding Corporation stated that all new homes are built by builder members of the Saskatoon & Region Home Builders’ Association and are backed by new home warranties to offer the maximum in quality construction and consumer protection.

The origin of the Affordable New Home Development Foundation was the Solutions for Economic Home Ownership (SEHO) initiative, lead by Keith Hanson of the Sun Ridge Group. SEHO won an honourable mention in the finance and tenure category of CMHC’s 2000 Housing Awards.

The Foundation Board of Directors includes Keith Hanson, executive director and directors Don Junor, Karen E. Walsh, Marilyn Boechler and Mona Nasser The Affordable Housing Solution Projects

The Foundation’s first project—led by SEHO in1999—is Borden Crescent in, which helped five families become homeowners. Since then, more than 250 families have been able to buy new homes in various neighbourhoods throughout Saskatoon.

The Gropper Crescent Project was a 50-unit project built by North Ridge Development. It was mostly single unit dwellings, with a few semi-detached dwellings. All units were condominium ownership and each unit was from 74 to 83 m2 (800 to 900 sq. ft.) with full basements. Lots were about 232 m2 (2,500 sq. ft.) Down payment assistance of $3,000 was provided through the Foundation from the City of Saskatoon.

Elm Park Terrace is an 11-unit condominium project built by Ehrenburg Homes. To help owners manage operating costs, energy efficiency is a high priority in these homes. Features include high-quality energy-efficient windows, high-efficiency furnaces and wastewater heat recovery in some units.

CMHC provided Seed Funding to help cover the costs associated with preliminary planning.

Hunter Crossing, built by North Ridge Developments, is a 40-unit condominium project that includes 11 accessible–affordable housing units. North Ridge consulted with the Canadian Paraplegic Association to ensure the proper design of the accessible units.

Low- and modest-income households purchasing homes in the projects had access to forgivable equity loans funded by all three levels of government under the Centenary Affordable Housing Program (CAHP)—Homeownership Option.

CAHP is funded under the Canada–Saskatchewan Affordable Housing Agreement, which emphasizes the creation of affordable housing, enables eligible low- to moderate-income households to become homeowners. The CAHP Homeownership Option provides forgivable equity loans of up to $19,500 to households with gross household income of less than $44,500.

Since the construction of the projects described above, the CAHP Homeownership Option has been renamed the HomeFirst Homeownership Program and the forgivable equity loan amount is $20,000 with a qualifying annual gross household income of up to $52,000.

Moishe Alexander, founder and CEO of CFC mentioned that many additional new units (townhouses, detached, semi-detached, apartment) were built by a variety of builders throughout Saskatoon neighbourhoods.

The purchasers of some of these units received financial assistance under the CAHP program.

CMHC news release:
http://www.cmhc.ca/en/corp/nero/nere/2006/2006-11-17-1200.cfm

Canada Mortgage and Housing Corporation (CMHC) is partnering with the City of Langford on its Affordable Housing Program. As Canada’s National Housing Agency, for more than 60 years CMHC has shared a wealth of knowledge and housing expertise to help create, informed and reassured homeownership experience.

Langford, a city of about 22,000 people, works with local developers to provide families with the opportunity to own new, affordable homes. The City and local developers created a “made-in-Langford” approach to providing families with the opportunity to own new, affordable homes. Introduced in 2004, Langford’s Affordable Housing Program requires developers of new subdivisions to build one affordable home for every 10 single-family lots subdivided.

CMHC supports the City of Langford’s Affordable Housing Program through the provision of affordable housing advice and expertise as well as innovative mortgage loan insurance products and tools that meet the needs of both lenders and consumers. This unique approach will open the door to homeownership for low- and moderate income households in Langford.

Flexible Financing – Options/Homeownership – Partnership Flexibilities

City of Langford and the development community developed a collaborative approach to help purchasers by providing direct down payment contributions and mortgage savings. The sale price of $165,000 (2008 price) will provide purchasers that meet the eligibility criteria with access to affordable housing and reduced mortgage costs.

CMHC mortgage loan flexibilities were created to help facilitate the production of affordable housing. CMHC will recognize the market value of the home when calculating loan to value and the insurance premium for new homes designated affordable under this program.

This unique approach greatly reduces typical mortgage costs for purchasers.