If you are looking for an affordable 2 bedroom, 2 bath 840sf 4th floor condo complete with air-conditioning, vaulted ceilings, tandem titled underground heated parking for less than $215,000, this newly listed [E3211790] is for you! Details at my website: www.edmonton-real-estate-info.com. Call me at 780 993-2290 and I will be happy to show it to you!
The Federal Finance Minister announced three new mortgage guidelines today that apparently will take effect April 19, 2010:
1. Refinancing will be limited to a maximum 90%. You will thus need at least 10% equity in the home.
2. Variable rate mortgages [2.25% today] will need to qualify at the 5 year closed rate [3.69% today].
Non-owner occupied homes [investment properties] will now need a minimum cash down-payment of 20%.
Whether you live in Riverbend, Glastonbury, Fraser or Mill Woods, take note of these changes if your mortgage is close to renewal!
If you are a homeowner in Edmonton, here are some tips to enable you to increase your equity position quicker:
1. Increase the frequency of your payments. By repaying your mortgage according to an accelerated bi-weekly plan [where once a year, you make an extra 2 week payment], a 25 year mortgage is paid out in less than 20 years, saving you thousands of dollars in interest.
2. Increase your mortgage payment by $15 [or more] every two weeks and you will be pleasantly surprised to learn how much interest you will save over time! If your circumstances change, most lenders will allow you to revert to the original amount.
3. Once a year [perhaps when your income tax refund cheque comes back], make a substantial cash payment and it will go directly against your remaining principal. More equity, less interest payable! It makes perfect sense.
Why make the bank’s bottom line look better when you can dramatically improve your personal financial picture by taking a few simple steps along the way?
Concerned about the mortgage crisis south of the border, the Canadian government is seriously considering implementing making more stringent qualification criteria. Two major changes are at the forefront: 1. Lowering the maximum time to pay out a mortgage [called the 'amortization' period] from 35 to 30 years. In practical terms, take a $200,000 mortgage at 4.2% interest. A 35 year amortization period would yield a principal plus interest payment of $905.30. Reduce the amortization period to 30 years and the monthly payment rises to $973.80–over $2.00 per day increased payment.
The second major change being considered is increasing the minimum 5% cash down-payment to $10%. On a $300,000 payment, a qualified buyer would have to have at least $15,000 of cash to put towards a mortgage. In the new scenario, that minimum cash downpayment would increase to $30,000. For many buyers, getting in to their new home would either become impossible or much delayed as they set about to save up an additional 5%.
If you are considering buying a home in Edmonton this year, sooner is better than later given these changes and the possibility of a 4-5% increase in home prices in 2010.
I would be happy to assist you in getting you safely and satisfactorily into your new home!