The Home Tribe Real Estate Blog

This week we heard the news that CMHC was changing some of their requirements for obtaining an insured mortgage. What CMHC highlighted is that starting July 1st, 2020:

• Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;
• Establish minimum credit score of 680 for at least one borrower; and
• Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

We get it, your probably wondering, what exactly does this mean to me? Simply speaking, obtaining your next Edmonton home may become more challenging after July 1st if (like many) you are looking to secure an insured mortgage.

To put even more simply, in speaking to Edmonton Mortgage Broker Dallas Sleeman, “this move will effectively reduce the purchasing capacity of buyers by about 10%”.  Meaning if you were approved for $500,000 – after July 1st, you may only qualify for $450,000. She also went on to mention that those who have been struggling with managing their credit will also have a tougher time getting a mortgage as at least one borrower will need to show minimum credit score of 680. She has shared some additional information that highlights the differences at On The Mark Mortgages website.

While there are other insurance options out there for Edmonton Home Buyers including Genworth and Canada Guarantee, it is difficult to determine if they will implement similar rules as well.

So… I’m sure your wondering, is there any GOOD NEWS? Absolutely there is! What this change means is now, even more so could be the ideal time to buy. Buyers that remove the conditions on a purchase prior to July 1st will not have to meet these new criteria. As Dallas put it, “The one bright side of the equation is that we have 3-ish weeks to get active files approved under the old rules to the finish line. So if you have any clients that are actively shopping, I would get live offers in ASAP. As long as the file is approved with conditions removed prior to July 1, the deal can still close after July 1.”

The real question is: What are you waiting for? Our Edmonton real estate team and our amazing mortgage broker partners are ready to help you realize your life goals one house at a time. Simply send us a quick message and lets chat about how we can secure your next home before July 1st.

• Book An Edmonton Buyers Consult
• Book An Edmonton Home Evaluation To Find Out If It Is A Good Time To Sell

More info from CMHC.

• Dear Homeowner, 

  Life is certainly creating unexpected circumstances, that are shaping our current lives and that will in some way or another impact our futures. 

  Not all news is BAD news though, which feels good to report. As an essential service, we continued to assist our clients both in the buying and selling journey.

• Each client has a unique story as to WHY it made sense to them; new job opportunities, needing to “downsize” for health reasons, having their home sold, to build more financial freedom, to reduce debt…and the list goes on. 

  The same is true for you as to why you are choosing to stay in your current home or why you’ve been, like us, “looking” at real estate while you have spent more time at home. 

  Whatever the reason you have been contemplating a move, we want you to know:

  • The Market Is Moving Forward:

    • In fact, one of the biggest challenges we are facing is a lack of inventory.  Sellers that have chosen to take advantage of this are in many ways yielding more money right now and selling faster.

  • There Are Buyers Waiting For The Right Home:

    • While our sellers are less physical showings – our listings are attracting more vetted (qualified) buyers who are making quick decisions in terms of moving forward. 

  • You Deserve To Be Informed:

    • Our true role goes beyond buying and selling. As your real estate advisors, we want to ensure you are kept informed about the value of your home on an ongoing basis. This ensures you can make the most informed decision about whether to stay or move, to refinance or even to invest in a new property. Talk to us about getting this information on a consistent basis. 

  • We Want To Keep You Safe:

    • Due to COVID-19, we are taking strict measures to ensure everyone’s safety. From how we are increasing our virtual options, to how we are validating who enters your home and how. We would be happy to discuss the protocols we have in place to protect your health and home’s best interests. 

  If selling your home or gaining more knowledge about the Edmonton Real Estate market is on your priority list for 2020, we would be honoured to be part of your team of advisors. We are passionate about putting your needs first and have a proven track record of success that highlights that.

  Curious about what your Edmonton home is worth? Try our interactive Edmonton home evaluation tool here. Ready to talk about getting your home sold? Give us a call or send a msg.

I am not going to lie, COVID-19 has rocked us all to the core in one way or another. It has affected our day to day lives and how we show up to do what we do. As of March 28, 2019 though, Edmonton Real Estate was classified as an essential service in Alberta which I do feel is a good thing. There are various reasons why people are looking to buy and sell and this also allows us to help them and ensure our current closings get completed as expected. The last thing we would want is for people to not get access to their already purchased Edmonton homes.

While we are still hustling and supporting our clients, we need to stress this does not mean business as usual. We are taking extra care in ensuring our clients are protected, adding additional marketing resources to give buyers more access to homes virtually and ensuring our health and safety too. You can read more about some of our services in this regard here: https://yeg.realestate/safety

I don’t know about you, but I can’t help but check the stock market every day and the same holds true for my real estate investments. It is important to have an understanding of where you are at so that you can make informed decisions in respects to what is right for you and your family. For some buying or selling will make sense now and for others, it won’t and that is okay. The greatest opportunity we can get is to keep you up to date on what is happening so that when the time is right we can be by your side to help you move forward then. Please reach out to us and tell us about how we can support your real estate needs.

We also want to point out that our role is and always will be in an advisor, consultant capacity and are here to help our customers build and manage their wealth through Edmonton real estate. We are doing our best to connect and engage with all our clients to see how they are doing and to see how we can support them at this time (relationships first and foremost). Whether you need help getting something like a few groceries to yourself, need someone to connect/talk with or want to stay informed of the Edmonton Real Estate market, we are 100% here for you. We want to help make a positive difference in your lives and our community.

Please let us know how we can support you during this trying time!

Your TruHome Real Estate Team

If you haven’t done so already, looking into the options being made available to defer your Edmonton mortgage may be something worth looking into. You can ask to defer your mortgage up to 6 months and may even be able to defer other loans and/or credit cards. Please expect a potentially lengthy wait time and be sure to ask important questions regarding deferral. If you don’t already know where to call – here is a list of all banks for your reference:

ATB Financial | 1-800-332-8383 |www.atb.com

B2B Bank | 1 800 263 8349 | www.b2bbank.com

Bank of Montreal (BMO) |  1-877-895-3278 | www.bmo.com

Bridgewater Bank|  1-866-243-4301 | www.bridgewaterbank.ca

Canadian Imperial Bank Of Canada (CIBC) |  1-800-465-2422 | www.cibc.com

CMLS Financial |  1-888-995-2657 | www.cmls.ca
Optimum Mortgage 1-866-441-3775 |www.optimummortgage.ca
Equitable Bank |  1-888-334-3313 | www.equitablebank.ca
Connect First Credit Union |  403-736-4000 | www.connectfirstcu.com
Chinook Financial | 403-934-3358 | www.chinookfinancial.com
First Calgary Financial | 403-736-4000 | www.firstcalgary.com
First National | 1-888-488-0794 | www.firstnational.ca
Haventree Bank | 1-855-272-0051 | www.haventreebank.com
Home Trust | 1-855-270-3630 | www.hometrust.ca
HSBC | 1-888-310-4722 | www.hsbc.ca
ICICI Bank | 1-888-424-2422 | www.icicibank.com
Manulife | 1-877-765-2265 | www.manulife.ca
MCAP | 1-800-265-2624 | www.mcap.com
Merix | 1-877-637-4911 | www.merixfinancial.com
Marathon Mortgage | 1-855-503-6060 | www.marathonmortgage.ca
Royal Bank Of Canada (RBC) | 1-866-809-5800 | www.rbcroyalbank.com
RFA Capital Holdings | 1-877-416-7873 | www.rfa.ca
RMG Mortgages | 1-866-809-5800 | www.rmgmortgages.ca
Scotia Bank | 1-800-472-6842 | www.scotiabank.com
Servus Credit Union | 1-877-378-8728 | www.servus.ca
Street Capital 1-866-683-8090 (Now part of RFA)
TD Canada Trust |  1-866-222-3456 |www.td.com

Important Questions You Should Consider Asking:

1. Will your property tax portion be deferred?

2. How will the interest be calculated on these deferred payments?

3. Is the life insurance portion also deferred?

4. What will happen at the end of the term?

5. Will the payments be blended into the remainder of the term after the deferment period (ideal option)?

Please remember, our Edmonton real estate team is here for you during this time. Stay healthy and safe.