The changes announced this week by Finance Minister Jim Flaherty should have little impact on the housing market. Despite what some reports are saying, the percentage of home buyers impacted by these changes is small.
So what changes were made? Here is a summary.
1) All borrowers must now qualify under a 5 year fixed mortgage rate even if a shorter term with a lower interest rate is chosen. How big of an impact is this? As an example: prior to the change - a couple purchasing a $350,000 home with 5% down would require an annual income of $61,039.12. That figure has now gone up to $64,301.25, a difference of $3,262.13/year in salary.
2) The government also lowered the maximum amount that homeowners can refinance their mortgage from 95% to 90%. How much of a difference is this? Again using a house value of $350,000, a homeowner under the new rules will be able to refinance up to $315,000 as opposed to $332,500 ( a difference of $17,500).
3) Lastly, the government has increased the minimum down payment required on non-owner occupied properties purchased to 20%. This is for government-backed mortgage insurance properties purchased largely by speculators in the market.
“We want to discourage the tendency some people have to use a home as an ATM, or buy three or four condos on speculation” Flaherty commented at a press conference in Ottawa. Of note is that lenders and mortgage insurers have long been discouraging any refinances up to 95% so again this will have little impact on the refinance market as it stands today.
Flaherty also commented -”There is no evidence of a housing bubble, but we’re taking prudent steps today to prevent one,”
The rule changes are set to come into effect on April 19.

If you have any questions regarding these changes please contact myself and I would be happy to review them with you. 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and Mortgage rates improve, while strong economic news normally has the opposite result.

Above Remarks by CMAC Mortgages

Stuart Pocock, AMP

Phone: 403-456-6444

Sales activity has seen an increase of 41.8% as compared to the activity registered in 2008, as per Multiple Listings Service (MLS) data. This surge has been the strongest Calgary Real Estate has seen in years.

A report by The Calgary Real Estate Board (CREB) released in November shows a rise in real estate sales and pricing. According to the report, the percentage of single family Calgary houses sold in November is up to 63%, with sales of condominiums a higher increase moving up to 77%. These more than optimistic figures are signs of a recovering market sustaining itself.

Newly elected president of the Calgary Real Estate Board believes that ‘now’ is the best time for buyers for Calgary Real Estate is seeing the lowest mortgages on record, with affordable pricing, and a great selection of houses, like single family households, Condos and apartments. This will surely encourage people to start buying again.

The Plan It project is also being put into effect; which directs future infrastructure planning away from the current urban centered environment and it focuses more on the resident. These improvements allow residents a choice of areas with conveniences available within walking distance from your home. There is an effort to improve public transit in order to lower the use of cars in the vicinity. A natural wonderland and the largest province of Alberta, Calgary, nestled in the foothills and higher plains of the Canadian Rockies.

On an intermediate selling price, the Calgary Real Estate Board forecasts a potential drop in market rates, with a drop of as much as $10,000.

The Calgary Real Estate market is all set to pick up. The interest rates on loans are on an all time low so it is wise to invest in the positives of the stabilizing economy.

Now is the best time to plunge into the market to buy Real Estate.Bring your aspirations of owning a house of our own, a place to call home to fruition.

A rapidly growing city, with a choice of prime estate in or neighboring the city making it like Real Estate Jordan and an optimizing tourist destination that Calgary is, a number of international investors who have started acquiring property in Calgary.

The Multiple Listing Service (MLS) of Canada is a good starting point. The several Real Estate Agencies, keen and more than happy to help the buyer. Your Realty Duo, Real Estate Professionals will guide you through the process if you’re in the market to buy, sell, lease, rent, or even post a listing, making it both a memorable and ennobling one.

Since buying Real estate is a lifetime investment, it requires planning and research. Get to Your Calgary Duo which offers a comprehensive collection of listings, property searches, home evaluation, home guides, and other features that will aid the buyer to explore all the options available at your finger tips, or help is just a call away.

When investing to buy a house, you need a good deal, one that presents you with the best house you could possibly want, along with the perfect neighborhood, and at the ideal price. Your Realty Duo, the Calgary realty team will be only pleased to assist you with finding a home that best fits your requirements. Here is a promise of professional, ethical and informative Calgary Real Estate services, which is their most significant assets being honesty and integrity, Your Realty Duo will facilitate your venture whether you wish to purchase, sell, browse, or investigate the possibilities available to you and make it ever memorable.