Selena’s March 2017 Update

Money Rules

Some of our buyer clients have been dealing with more challenges than normal in getting their mortgage approved. One bank request the buyer need have minimum 2 years working experience. Another bank do not want to deal with flip properties. Other banks have put a cap on the number of mortgages a person can get. And several banks have insisted that if you are buying a rental property you have to have a lease. Thats fine if there are existing tenants but most investment properties are vacant. The banks ignore this catch 22 situation, you can’t rent it out if you don’t own it, and you can’t get mortgage approval unless its rented.
So the solution in these challenging mortgage rule times is to work with an experienced mortgage broker who is familiar with these changes and any further changes coming down the pipeline. The next article is contributed by mortgage broker Marc Crossman from Dominion Lending.

Money Rules Part 2

Contributed by Marc Crossman, Alberta Mortgage Pros

Edmontonians, and Albertans in general, active in the real estate market have been hit by a perfect storm. Between slumping oil prices over the past couple of years, a
change in political leadership after 44 years of PC rule, and mortgage rules changes announced
in February, October, and November of 2016, a lot has shifted. Prior to this storm of changes, a
tightening of mortgage financing had already begun so these events have only compounded the
problem.

While lenders and mortgage brokers have been digesting the new information and adjusting to
the recent mortgage rule changes, I don’t believe the market place, i.e. the clients, have caught up yet. Mortgage qualification and interest rates will be significantly more tailored to
a client’s specific set of circumstances so there is a greater need for more detailed information
throughout the process of securing a mortgage loan.

The new reality of this changing landscape is simply this: The process of qualifying for a
mortgage has to start earlier. In my opinion, the best way to combat the changes and their implications is to be prepared; have a preliminary discussion with your mortgage broker early
on and start the pre-approval process as soon as you are able. Pre-approval clients
will have a clear indication of their buying power and their broker will be able to address any
potential issues or concerns before shopping for a property commences. This pre-work also
offers clients an opportunity to get educated on interest rates, terms, and options available for
their specific set of circumstances.

9333-87 Ave

Evidence of a stronger spring market is present when you see high end homes like this one being offered for sale. It is a beautiful 2300 square foot residence in Bonnie Doon, close to the University, Mall, Downtown and the walking trails in the ravine. What makes this home attractive is it comes with a legal suite, so lenders factor in that cashflow when making the calculations of what a buyer can afford. As a comparison, the just across the street recently sold for $950,000. It was slightly smaller in size at only 2200 sqft but the basement was finished with the all important suite.

Latest Sales Data

Every Month the Edmonton Real Estate Board gathers the latest sales figures sorted by property type, price ranges, listed and Sold. Click the above link to download a copy from our website.

Housing Trends

Its one thing to download the latest sales figures from Edmonton Real Estate Board and its another to actually understand what all the numbers mean. Click the above link link for a summary from the President of the Edmonton Realtors® Association, or reply to this email and we will be happy to discuss it with you or provide sales figures for different months.

Turning 4

Fionna had a wonderful birthday celebration hosted at MyGym where she could celebrate with her friends and it was ok to run around and make lots of noise. Several parents commented it was a great venue and plan on going back. We were both overwhelmed by everyones generosity but more specifically, the thought that they put into choosing gifts is amazing. They were all so perfect for Fionna. One of her favourites is this house which she decorates and colours a little more each day.

Disclaimer: Not intended to solicit buyers or properties under contract.
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
The trademarks REALTOR®, REALTORS®, MLS®, Multiple Listing Service®, and the associated logos are controlled by
The Canadian Real Estate Association (CREA) and identify real estate professionals
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