Finance Minister Jim Flaherty announced changes in the mortgage rules. The 4 changes that will take effect July 9th, 2012.
Maximum amortization reduced to 25 years from 30 years
Maximum amount you can refinance your home is lowered from 85% to 80%
Gross Debt Servicing (GDS) maximum is 39%, Total Debt Servicing (TDS) is 44%.
Homes with purchase prices of one million or above will require a minimum down payment of 20%.
Canada’s mortgage market is one of the safest in the world. They make these changes to secure the financial market and to keep the economy running smoothly.
If you are currently looking or are thinking about buying, don’t delay, finalize your home purchase and get your mortgage approval before July 9th, 2012. Enjoy the benefits of the current rules before they are changed.
Feel free to call or email me with any questions that you may have.
You’re trusting a REALTOR® with your most valuable possession, your home. REALTORS® take this responsibility very seriously. Here’s what we promise you.
Your REALTOR® is highly trained
REALTOR® training is so rigorous that candidates often fail the pre-registration courses. Those who do pass must master a long, diverse list of subjects ranging from housing construction to family law.
Your REALTOR® is continuously trained
We keep pace with the times. All Licensed REALTORS® must take continuing education courses to make sure their knowledge on subjects like legal issues and technology are up to date.
Your REALTOR® does everything by the book
A licensed REALTOR® must be registered under provincial laws that govern exactly how real estate can and cannot be traded. These regulations are your legal guarantee of professional behavior.
Your REALTOR® is an ethical businessperson
REALTORS® must adhere to the extensive Code of Ethics of the Canadian Real Estate Association. Several provinces have additional Codes of Ethics governing the behaviour of real estate professionals. Your interests must always be put first.
Your dealings with a REALTOR® are insured
For your peace of mind, provincial regulators sponsor consumer protection programs that may require, for instance, that REALTORS® maintain Errors and Omissions Insurance. Often deposits consumers make in real estate transactions are also insured under these programs.
Opportunity for recourse
Should you have concerns about the professional behavior of a REALTOR®, provincial regulators and your local real estate board or association take these matters very seriously and work quickly to resolve any issues.
Your REALTOR® has access to the Multiple Listing Service® and Real Estate Weekly
The MLS® System is the single most powerful tool for buying and selling a home. It is a complex information sharing and cooperative marketing network created by REALTORS® to help consumers buy and sell homes. The Real Estate Weekly is an Association-owned newspapers and as such, only REALTORS® have access to this medium, which distributes over 60,000 papers per week. The paper is distributed throughout Edmonton and surrounding areas as far north as Westlock, south to Wetaskiwin, east to Ardrossan and west to Alberta Beach and now includes Strathcona and Sturgeon counties.
There are huge incentives when looking to buy a home. Canada's Mortgage and Housing Corporation (CMHC) offers incentives for home ownership. Buying your first home is one of the largest investments of your life. Canada’s Economic Action Plan introduces the First-Time Home Buyers’ (FTHB) Tax Credit and the expansion of the Home Buyers’ Plan (HBP) to provide you with additional benefits and help you realize your dream of homeownership.
First Time Home Buyer's Tax Credit (FTHB): The costs associated with buying a home, such as legal fees, disbursements and land transfer taxes, can be a lot for first-time homebuyers who must pay these costs, as well as saving money for a down payment. To help first-time homebuyers with the costs associated with buying a home, the Government of Canada introduced a FTHB Tax Credit in 2009 > a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009!
Buying a home is one of the biggest purchases of your life and you want to be cautious that you don’t make any mistakes that you’ll regret later on. Here are the top four most common mistakes made when buying a home, along with tips on how to prevent yourself from doing them or how to recover if you have already made them.
Mistake #1: Not Getting Pre-Approved
The biggest mistake made by homebuyers and is the first thing you should do if you plan on buying a new home! How to Prevent: Easy, get pre-approved! By getting pre-approved, you’ll be able to search for homes that affordable for you, while also putting you in a strong negotiation position when you make an offer. A Realtor can provide you contact information for a qualified mortgage specialist.
Mistake #2: Not Using a Qualified Agent
Why use a Realtor? 1. Convenient 2. Market Knowledge 3. Insider Knowledge 4. Identify Your Needs 5. Access to Comparables and Sales Information 6. Professional Negotiation 7. Mitigater of Emotions 8. Professional Connections 9. Knowledge of Industry Standards, Legalities and Writing a Contract 10. Buyer’s agent is free! How to Recover: It’s never too late to get an Realtor, even if you’re already at contract, they can help with all the legal and negotiation aspects.
Mistake #3: Not Getting a Thorough Inspection
Getting a thorough inspection is the only way you’ll know you have real knowledge about the house. How to Prevent: Hire a licensed home inspector. They take the emotion out of inspecting a home and give you a real, critique about the home you’re thinking to purchase. How to Recover: If you didn’t hire a home inspector, try to get a good home warranty in case any issues do arise in the future.
Mistake #4: Focusing on Wants, Not Needs
This mistake is usually made by first-time homebuyers, but can happen to even the most experienced homeowner. How to Prevent: Make a list of must-haves and refer to it when you’re house hunting. Make sure it is a list of NEEDS not WANTS. How to Recover: If you’re in negotiations and realize you made this mistake, try using provisions of contract to either get out of the deal or fix the issues before you close.
