July 10, 2008

CMHC Pulls 40 Year Mortgages

Financial Post:  Garry Marr reports that CMHC, in fear of following the US mortgage crisis, has removed zero money down and 40 year mortgages.  The new rules, which begins on Oct. 15, 2008 will require borrowers to have atleast 5% down payment with a maximum of 35-year amortization.  Any borrower who has less than 20% down payment will be required to get mortgage insurance.  

June 12, 2008

BUYER'S MARKET IN EDMONTON

REW: Reports that it is a perfect time to buy a home with housing prices being stable for the past 5 months and a drop in mortgage rates.  MLS in Edmonton shows that 42% of all homes added to its listings were sold in the month of May.  Furthermore, the average price for all types of residential properties went up by 1% with an average day of 53 days on the market. 

June 5, 2008

UNDERSTANDING CONDOS

REW:  Reports that the average condo costs is $129,086 lower than single family homes.  Condos are more attractive to the first time buyers as they're cheaper with a lower maintenance cost.  However, there are somethings that buyers should be aware of prior to purchasing a condo.  The article explains what to look for and gives a clear understanding of condos.

May 31, 2008

CANADA FOLLOWING THE STATES?

Financial Post:  Jacqueline Thorpe reports that Garth Turner states that Canada is following the US in sub-prime mortgage lending.  Turner states that there is currently a decline in housing sales because prices are now beyond the reach of the average buyer.  Like the US, in order to keep the industry going, mortgage companies will start subprime lending.  Turner also stated that the trend is already beginning with the 40 year mortage that has just recently started in Canada.  However, Derek Holt, vice-president of Scotia Capital dismisses Turner's claims citing that Canada has a much more rigourous standard than its southern neighbour.  Furthermore, demand for living space has always been driven by income and wealth.

May 22, 2008

RENTERS CONCERNED ABOUT RENT HIKE

REW:  Larry Herzog of Real Estate Weekly reports that 60% of renters in Edmonton are worried that they cannot afford their rental units.  A survey by the Edmonton Social Planning counsel reveals that rising costs and low vacancy rates for the past  year have created "an upward pressure on rents."  Renters are being forced into substandard accomodations.  Tenants are afraid to even ask for maintenance on their suites in fear that rental prices increase.  Furthermore, they're also reluctant to complain to housing authorities in fear of losing their homes.