We know – more changes?! How can that be! With this ever-changing landscape, mortgages continue to get more complicated. This next round of changes is predicted to take affect this coming October 2017 (date not yet available). These new rules contain three possible changes, the most prominent being the implementation of a stress test for all uninsured mortgages (those with a down payment of more than 20%). Under current banking rules, only insured mortgages, variable rates and fixed mortgages less than five years must be qualified at a higher rate. That rate, of course, is the Bank of Canada’s posted…

A mortgage broker can help you avoid many of the pitfalls commonly encountered during the home buying process, it's still important to be informed even before you start looking for that perfect home.

1. Check your credit report before you apply for a mortgage - Equifax
2. Lowest rate is not always the best rate for you
3. Minimum of 5% of the purchase price, over a purchase price of $500.000 it is 5% on the 1st $500,000 and 10% on the balance of the purchase price
4. Set a budget for yourself: legals fees, home inspection fees, condo fees
5. Rate shopping, don't!  Let your broker pull one bureau and find the best mortgage for you

After 7+ years of ultra low rates

This is something that has been a long time coming.  There is a huge overhang of central bank debt around the world that now must be unwound. It will not be without pain. The following are a few articles on the subject that we hope will hep shed some light on what is happening and on what you can expect.

How The Bank of Canada rate hike will affect borrowers

Bank of Canada raisers interest rate for first time in 7 years

Further interest rate rises may or may not be on the cards in 2017 with no expert consensus as yet. Following the increase on July 12, Bank of Canada governor Stephen Poloz said that further rates would depend on data. The latest retail figures, released by StatsCan last week along with rising inflation have some calling for another rate rise before 2017 ends. TD Securities' Fred Demers told Bloomberg that an interest rate hike in October 'is a very likely scenario," while Benjamin Reitzes of BMO Capital Markets added: "October is still a very reasonable call for the bank." CIBC economist Avery Shenfeld is…

Rebuilding efforts in Fort McMurray, Alta., are running ahead of expectations, with reconstruction underway on one-third of the homes destroyed in last year’s wildfire, according to Canada Mortgage and Housing Corp. In a report Thursday, the federal agency said the rebuilding of 844 housing units has started and that number is expected to rise to about 1,000 this year. It said 122 of the projects were started last year and 722 in the first half of this year. CHMC market analyst Tim Gensey said the agency underestimated how many construction workers would come to Fort McMurray when it suggested last December only…

Statistics Canada reports that $12.4 billion was invested in the sector with industrial and commercial buildings leading the rise while institutional spending was lower.

Overall, 6 provides posted an increase with Ontario having the largest upturn, followed by BC and New Brunswick.  Alberta and Saskatchewan saw the largest declines.

Looking to invest in property?  Call a Jencor Mortgage Advisor today and find out exactly how much you can afford and the best mortgage for you!

Canadian Real Estate Wealth - Steve Randall

Alberta's recreational property values, particularly those near Edmonton and Calgary are on the rise a new market report says.

According to the 2017 Royal LePage Canadian Recreational House Report, recreational properties near the two cities have begun to see their markets turn a corner with slight year over year prices increase so far in 2017.

Average regional prices in Alberta include:

• Pigeon Lake: $450K for lakefront / $315K for woodland cabin / $236K resort/condo
• Wabamum Lake and Lac St. Anne: $516K for lakefront/ $242K for woodland cabin
• Sylvan Lake:  $1M for lakefront property
• Pine Lake: $600K for lakefront property
• Canmore: $2.75M for riverside property / $790K for resort/condo property

 

Edmonton Journal 06/20/2017