Edmonton Real Estate Blog

What is Mortgage Loan Insurance?

Mortgage Loan Insurance (also referred to as “Default Insurance”) protects lenders/banks from loss due to borrower default on a mortgage. Default Insurance provides a necessary safety net to the financial system, helping to ensure the availability of mortgage funding.

Banking laws require Default Insurance when the down payment is smaller than 20% of the lesser of the purchase price or the appraised value of the property. Even when down payments are 20% or larger, lenders may still require Default Insurance due to individual borrowing circumstances, such as property location or property type. There are 3 insurer in Canada; CMHC, Genworth and Canada Guaranty.

Who pays the Default Insurance premium?
The borrower pays the insurance premium. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments. Most borrowers add the premium to their mortgage.

How do consumers benefit?
Consumers can become home owners sooner. Default Insurance enables consumers to borrow from us to purchase homes with a down payment as low as 5%, rather than needing to save 20%.

How much does Default Insurance cost?
Default Insurance is calculated as a percentage of the mortgage amount and is based on the size of the down payment and the amortization period.

The following table lists the standard premiums.

The Edmonton Chamber has continually been proactive in its advocacy for this project – a project that holds tremendous economic importance to our city, and that must be viewed as a transformational project for our downtown core, the likes of which we have never seen.

The approximately $550 million project is set to be a catalyst project for Edmonton’s downtown that will enable the attraction of new residential, commercial, retail, and entertainment development. With the creation of the entertainment district, Edmonton’s downtown core will be transformed into a vibrant, diverse, and exciting destination that Edmontonians can be proud of.

The Edmonton Chamber of Commerce will continue to support the development of a vibrant downtown on behalf of our almost 3,000 members, as we view this as a tool not only for increasing investment and economic activity in our Great Northern City, but also as a retention and attraction tool for the city’s and region’s employers.

It must be acknowledged that this opportunity wouldn’t have become a reality without the participation and cooperation of all three levels of government, Daryl Katz and the Katz Group, as well as the municipalities that make up the Capital Region. Edmonton’s business community is appreciative of the efforts of all parties in making this deal happen.

Source: Edmonton Chamber of Commerce

OTTAWA – Incoming Bank of Canada governor Stephen Poloz is already getting advice on what to do once he takes charge next month — start hiking interest rates.

The C.D. Howe Institute says in report authored by economist Paul Masson, a former special adviser to the central bank, that after five years of super-low interest rates, it is time to take the anemic economy off its meds.

He says an extended period of low interest rates is introducing pervasive problems into the economy, such as asset bubbles in housing and risk-taking and inefficient investments.

As well, low interest rates are threatening the sustainability of pension funds and contributing to record high levels of household debt.

Masson notes that other countries also have near zero policy rates, but says Canada is not in the same position as the United States, Japan or Europe.

The economic recession of 2008-09 didn’t hit Canada as hard, he says, and with gross domestic product near the economy’s capacity, the current one-per-cent policy rate no longer is justified.

Raising rates may increase the value of the Canadian currency and set back exports, Masson concedes, but adds that with the U.S. economy in recovery mode and the dollar already below parity, the manufacturing sector can cope with a modestly stronger loonie.

Source: MSN Money

Price reduced to $429,900! IT’S STUNNING!!! 1852 sq.ft. 2 Storey, 3 Bdr Plus Main Floor den that could be used as a 4th bdr. It has 2.5 Bath, & Open Great Room Concept. Featuring Gleaming Hardwood, Earth Tone Tile, Neutral Paint & Laminate Floors, An Amazing Foyer With A Full & Open Ceiling That Accents The Beautiful Pillared Archway Which Divides The Formal Dining Room & Living room. A Lovely Traditional Dining Room Is Terrific For Entertaining During Those Special Occasions & Designed For A Full Dining Suite. The Great Room Has a Gas F/P. The Dinette is Bright & Cheery & the Kitchen Area Is Found At The Back Of the Home Opening up To the Deck & Back Garden. Also On The Main Floor Is A Laundry/Mud Room W/Newer Stainless Steel Front Loading Washer & Dryer W/Access To The Garage. Up The Grand Stairway To The Upper Level Is The Nicely Sized 2nd & 3rd Bedroom W/4Pc Bath & The Master Retreat That Boasts A Walk-In-Closet & A Gorgeous Spa W/Swirl Tub. The Home Also Has P/Fin Basement. For more information view realtor’s website.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

City Council sets the priorities for LRT construction and determines how funding will be used, however the City’s 30-year Transportation Master Plan includes extending LRT to all sectors of the City by 2040.

Source: www.edmonton.ca

Great starter home. 3 bedroom, 1.5 bath, 1135 sq ft, 2 storey home with fully finished basement and covered carport. Tastefully decorated in modern colours and hardwood floors. Brand new bathroom with marble floor tile, new sink and vanity , new tub and ceramic tile surround. Patio door leads to good size deck and backyard. Conveniently located close to schools, hospital, rec centre, south common with easy access to major roadways and bus routes. Only $269, 900. Call for more information or to book a showing appointment.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

You’ve found a house that you like but it needs improvements. The Purchase Plus Improvement program will allow you to add the renovation cost to the purchase price, so you can benefit from a low mortgage interest rate and make only one payment.
Before, you go and make an offer, there are a few conditions that will help determine whether this program suits your needs. One of the first misunderstandings with Purchase Plus Improvement, is that most people do not realize that they will have to pay for the renovations themselves, until the work is completed. The lender will mandate that the solicitor “hold back” the additional cost added to the mortgage, that represents the improvement amount. Once the work has been completed, an appraiser will have to supply the lender with an inspection report, to verify the work has been completed as agreed. The lender will instruct the solicitor to release the funds from his trust account, to pay for the improvements. My advice in these circumstances, is to take advantage of family, or lines of credit to finance these costs until completion. Some renovation companies my not require payment until work is complete.
Secondly, CMHC and Genworth both have guidelines regarding maximum improvement allowance. The improvements cannot exceed 10% of improved value or $40,000.
Thirdly, before I can submit this type of transaction to the lending institution, you will need to supply me with a quote and/or a renovation contract. For self-renovations provide cost of supplies from Home Depot/ Rona. Note, lender will not pay for borrower’s own labor.

Please ensure to keep all invoices and receipts. All invoices and receipt must also be provided to the lender before instructions are sent to the lawyer to release funds. The cost of appraisal is the responsibility of the borrower.
Here is an example of a Purchase Plus Improvement mortgage. The house is priced at $300,000 but it needs another $20,000 in renovations. You can add in the renovations cost to the purchase price and CMHC or Genworth will lend against the total value (purchase price plus the renovation cost).
Purchase price $300,000
Renovations $20,000
Total cost $320,000
Lending value $320,000
Max. Mortgage $304,000 (95% of $320,000)
Min. down payment $ 16,000
Please don’t hesitate to contact me if you have any questions or require additional information.

Do you have stuff in your home that you need to sell? Perhaps you have some suits or dresses that no longer fit, an older living room set that you’ve just had replaced, or a vinyl record collection you’ve been hanging onto for years.
If a traditional garage sale is not an option for you, there are other ways to sell those items.
For example, you could rent a stall for the weekend at a local flea market. This is relatively inexpensive and can be a fun activity for the whole family.
Another option is to advertise in your local community newspaper. Advertising rates in local publications are often much lower than in major newspapers.
You can also advertise on the internet. There are several popular sites, such as Craigslist.com and eBayClassifieds.com (Kijiji.com in Canada) where you can advertise for free.

Come check out this beautiful home in person this Sunday, the 5th at our open house.

10632 181 Avenue Northwest
Edmonton, AB T5X 6J8, Canada

IT’S STUNNING!!! 1852 sq.ft. 2 Storey, 3 Bdr Plus Main Floor den that could be used as a 4th bdr. It has 2.5 Bath, & Open Great Room Concept. Featuring Gleaming Hardwood, Earth Tone Tile, Neutral Paint & Laminate Floors, An Amazing Foyer With A Full & Open Ceiling That Accents The Beautiful Pillared Archway Which Divides The Formal Dining Room & Living room. A Lovely Traditional Dining Room Is Terrific For Entertaining During Those Special Occasions & Designed For A Full Dining Suite. The Great Room Has a Gas F/P. The Dinette is Bright & Cheery & the Kitchen Area Is Found At The Back Of the Home Opening up To the Deck & Back Garden. Also On The Main Floor Is A Laundry/Mud Room W/Newer Stainless Steel Front Loading Washer & Dryer W/Access To The Garage. Up The Grand Stairway To The Upper Level Is The Nicely Sized 2nd & 3rd Bedroom W/4Pc Bath & The Master Retreat That Boasts A Walk-In-Closet & A Gorgeous Spa W/Swirl Tub. The Home Also Has P/Fin Basement. For more information view realtor’s website.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz