Mortgage Rules Means More Equity Quicker

Thu, 21 Jun by

The government announced Wednesday it will reduce the maximum amortization period for a government-insured mortgage, lowering it from 30 to 25 years, and also drop the upper limit that Canadians can borrow against their home equity from 85 per cent to 80 per cent.

Edmonton Lake Properties

Buyers who purchase a home with a down payment of less than 20 per cent of its value are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.

Under the new rules, mortgages amortized over a period longer than 25 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 25 years in Canada.

A shorter amortization period demands higher payments, but it will also mean homeowners build up equity in their homes faster.

The announcement marks the fourth time in four years that the government has clamped down on mortgage rules. It first moved in 2008 by cutting the maximum amortization period to 35 years from 40 and requiring a minimum down payment of five per cent.

Further changes were announced in February 2010, and came into effect April of that year.

In January 2011, the federal government reduced the maximum amortization period for new government-backed insured high-ratio mortgages to 30 years from 35 years and cut the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent.

Edmonton Lake Properties

It was not immediately clear when the changes will be phased in, but the last two announcements of changes were in effect about 60 days after they were announced.

Canadian mortgage rates have been near record lows for months.

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have been warning for months that Canadians have been racking up more debt than they can sustain during the long period of ultra-low interest rates.
CMHC first introduced insurance for 40-year-amortizations in 2006, when it also moved to provide mortgage insurance on 100 per cent financing.

The Lake Specialist

Sat, 09 Jun by

In three words, “know thy product” . Lake real estate is not city real estate or even acreage real estate for that matter. Buying lake property often is a lifestyle statement and each lake west of Edmonton offers a different set benefits and cautions.

Lac St. Anne

Photo by: Woody1778a

You would be well advised to review the attributes of the lakes and which one fits for you so that nothing is overlooked when it comes time to purchase a lake property. Neighborhood information should be available from a lake specialist. Lake communities often offer services you don’t get when you are not in a community. Each lake west of Edmonton has a series of communities surrounding them. These are often referred to as summer villages. There is good reason for that as many populations can drop as much as 70% between summer and winter residents.

Here is a small checklist of questions you should know:

– Where is beach access from the property you are buying and is there a boat launch.

– Does the furniture stay? As these are second homes they are often negotiable.

– Is it a 4 season cabin? Many cabins out in lake country were only meant for 3 season living. Financing is often more difficult when purchasing a 3 season cottage. 4 season often 5% down is available.

– Check your foundation type, through the years building codes lacked well behind city properties so know what you are getting.

– Water and sewer systems, many communities are going to community sewer. Many that don’t have sewer only allow for holding tanks. How many gallons per minute does your well provide? When was it last tested?

–  Some lake are much more expensive than others, so make sure you know what com parables are in each area.

This is just some of the factors to watch out for, give Wayne William Heine a call if you need anymore info on lake property.

Wayne William Heine



The Real Estate, Lake Living and the Lake REALTOR®

Mon, 04 Jun by

The Real Estate, Lake Living and the Lake REALTOR®

The word blessed is meaning more to me these days. Here I am a month or so into my lake real estate career and I’ve excelled past my most ambitious goals. But what I wasn’t expecting or maybe forgot about in my previous career in real estate is how the real estate, the REALTOR® and the perspective buyer or seller interact.

I’m receiving an education in humanity I didn’t sign up for or expect. In one word I’m humbled, humbled by many things:

–       By the sincerity of the many just seeking help and hoping to get the right advice

–       By the people holding their cards so tight the right REALTOR® finds it hard to help

–       By the goodness of so many opening up, I’ll never betray your trust

–       I’m learning even by those who can’t be honest about what their true motive is, when they call about a home or an evaluation. Words of advice it’s always best to be honest. You’ll still get help, but you could save everyone some time by being upfront.

–       Mostly I hope I’ll have the strength and plan to find the right home for the right buyer and the ability to help my sellers get true market value for their homes.

My hopes are that I can develop the skill and knowledge to help my clients and potential clients see what I see in the market and that dealing in reality is best and that working with a REALTOR ® in a true partnership is the best way to achieve their real estate goals.

For me, I’ve thrown away my financial gladiator goals and am now focused solely on people helped. Does this make me weaker, no I believe I’m finally starting to understand REAL STRENGTH!


Wayne William Heine

Edmonton Lake Properties

RE/MAX Real Estate
10805 120 Street, Edmonton, Alberta, T5H-3P9

Tel: 780.991.5107
Email: Click Here

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