Edmonton Mortgage and Dominion Lending Centres


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Canada has of course also been going through a real estate crisis, just as the United States has. However, it’s perhaps worth noting that the Edmonton banks are once again beginning to offer mortgages. Of course, it is only to be expected that they are now a little more cautious than before with regards to the way they view a property as well as the borrower. Nonetheless, this is an ideal time to apply for a mortgage given that the interest rates are incredibly low. Furthermore, it is said that the housing market has by all accounts bottomed out, so if this is the first time you’re contemplating purchasing a property, you’ve come along at just the right time in order to get the lowest possible price, together with the lowest 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.

With regards to Edmonton mortgages, government guaranteed mortgages are also still available. While certain rules may have changed, they are by no means what one could consider to be deal breakers. For example, the maximum amortization period has been reduced from 40 years to 35 years. Furthermore, mortgages which are government backed will require a 5% down payment and of course there is now also a minimum credit score requirement.

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 CMHC (Canada Mortgage Housing Corporation) continues to offer mortgages with a variety of flexible tools and options. These range from single advance plans, to progressive advance plans, and even extended amortization periods. Furthermore, it may be worthwhile noting that these mortgages also offer portability for those who may wish to move at a later date. Additionally, those who choose to purchase an energy efficient home in Edmonton will also qualify for certain breaks.

The good news however doesn’t stop there, because as of June 2009, Canadian residential starts actually rose for the second month running. On the other hand, in the United States, residential starts have basically come to a complete halt.

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.

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