PREFERRED CliENt - Millennium Mortgage Group

Preferred Client
Working Hard to Keep You Informed
No. 5 2015
Dear Valued Client,
Spring Mortgage & Real Estate Outlook
Heather Manna
Jacki Harris
Managing Partners & Mortgage Brokers
Keep Calm and
Mortgage On
[email protected]
[email protected]
It may not feel like spring yet in some parts of the country, but the latest volleys in
the mortgage rate war are a sure sign that “Real Estate Season” is in full bloom.
Some smaller lenders and charter Banks are promoting record low rates, but they
may come with conditions that make them restrictive for borrowers. Watch this
carefully if yourself or any friend or family member are looking to purchase or
refinance. Restrictive mortgages can disable certain privileges such as pre-payment
capability, transfer and portability, higher penalties, or bonafide sale clauses. Make
sure to ask for all of the details upfront on your financing approval to ensure that
you have the full picture. As always, we are happy to help and always available for a
second opinion. Aside from the interest rate wars, The housing industry seems to be
anticipating some pent-up demand. Housing starts for March climbed. Urban and
Inner City multifamily housing led the way with a 48.2% jump.
None the less, the forward looking building permit requests and numbers are
positive. Despite a slight, overall decline in February, residential permits saw a 1.5%
increase powered by a 20.7% surge in multi-family permits. The numbers were
dragged down by the non-residential component in central Canada led by Quebec,
however in general the Alberta and Calgary housing market is in Hot demand and in
full swing to start off Spring.
Important Changes coming our way!
Effective July 1st 2015 the Alberta Government has input a new motion to increase
land title registration fees. This means that anyone buying (or refinancing) with a
possession of July 1st or after, will have to pay higher closing costs, which equate to
about an extra $1000.00 of fees. This is in addition to existing legal expenses and
closing costs.
As well, CMHC (Canada Mortgage & Housing Corp) and Genworth Financial have
announced that mortgage insurance premiums are increasing as of June 01st for
anyone buying with less then 10% down payment. The percentage increase is from
3.15% to 3.60%. This is the second such move in two years, as the mortgage
insurers hiked its premiums from 2.75 per cent to 3.15 per cent last year in 2014.
So to recap, If you purchase prior to June 1st 2015 and your mortgage application
has been submitted and approved prior to then, you would not be effected by the
Mortgage Insurance premium increase. Secondly, if you purchase and take
possession prior to July 1st 2015 you also avoid the fee increase to the legal land title
registration changes.
If you are in the market to purchase or even refinance, make those decisions
fairly quickly to avoid having to dip further into your pockets and save yourself
some money!
Heather and Jacki
113, 1013 17th Ave. SW
Calgary, AB T2T 0A7
Did you know...
The floors of buildings are
Heather & Jacki’s
Preferred Client Update
called storeys because early
European builders used to
paint picture stories on the
113 - 1013 17 AVENUE SW
Preferred Client Update • Working Hard to Keep You Informed
sides of their houses. Each
floor had a different story.
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