As we all know, the United States have been clawing their way through a real estate crisis just as we’ve been experiencing here in Canada. However, unlike in the United States, Edmonton banks are once again offering mortgages, even though they are being extremely cautious this time round. Even though they are now scrutinizing both the properties and the borrowers, it’s still a good time to apply for a mortgage considering that the interest rates at present are extremely low. Furthermore, if rumors that the housing market has bottomed out are anything to go by, there has never been a better time to acquire a property for the lowest price and with the lowest mortgage interest rates.
Contrary to what you may have heard, providing your credit is in good standing, you can still to get 95 percent financing. Unfortunately the government has done away with the 100% loans. What this basically means is that you will not be required to put any other money down apart from the 5% and of course any accompanying fees such as those for your attorney.
Government guaranteed mortgages are still out there too for Edmonton mortgages. A few of the rules have changed, but they are not deal breakers by any means. For instance, the maximum amortization period has changed slightly moving down from 40 years to 35 years. Government backed mortgages will now require that a 5% down payment needs to be paid now, and there is a minimum credit score requirement now.
All of this was created in order to keep Canadians from seeing the awful mess that citizens of the United States are seeing now. Contrary to what the United States is feeling, the housing bubble has not truly burst in Canada, especially in Edmonton, mostly due to careful mortgage lending in the past.
The Canada Mortgage Housing Corporation (CMHC) mortgages offer many flexible financing tools and options, such as extended amortization periods, and the single advance plan as well as progress advances are available. Also do not ever forget that those mortgages offer portability for your next home should you have to move! Also, remember that you will be given a break for purchasing an energy efficient home in Edmonton.
There is more good news in the mortgage market. In June 2009, residential starts across the Canadian nation actually rose for the second month in a row in June. Housing starts have basically come to a complete halt in the United States, thus this is good news indeed.
The Canada Mortgage Housing Corporation reports in regard to senior housing, that the overall vacancy rate for a standard units in retirement rental homes across Alberta stood at 5.9 per cent in 2009, and the average rent for a standard retirement home unit was $2,334 per month in Alberta in 2009. Again this is an excellent comparison to what is happening to our Southern neighbors in the United States.
One thing we do share with our U.S. neighbors is that we have access to hard money lenders. In fact, private lenders have in recent times freed up a tremendous amount of cash. As a result, those mortgages are now readily available but they come with a loan to value ratio of approximately 70/30 which by all accounts is relatively expensive both in terms of points and interest. As such, you are strongly advised to avoid such loans unless of course you’ve been unable to acquire a different mortgage.