The Office of the Superintendent of Financial Institutions is currently reviewing how Mortgages are approved for Canadians. Over the last few months we have seen some changes to the way self-employed individuals are assessed as well as a change in how investor mortgages are considered. In the upcoming weeks the following issues are on the table for Edmonton real estate:

1)      Currently mortgages are simply renewed at maturity with most lenders. There is discussion of having Canadians requalify or at the very least, be assessed for risk at time of renewal. This could affect renewal rates and terms.

2)      The viability of future income is being considered as a factor in debt ratios. This could affect your older clients nearing retirement. Currently mortgage are approved based on current income. The consideration of future income is now on the table.

3)      A discussion of reducing LTV to 65% for non-conforming mortgages is in play. There is also a discussion for further increasing the rates for these types of clients. This will affect your self employed clients even further should this be implemented.

4)      Clients can currently take a cash back or borrow the down payment to purchase their home in limited circumstances. This may end quickly as a trade-off to retain the ability to have a 5% down payment. There is discussion to increasing this to 10%. This will significantly affect all first time buyers.

5)      Heloc’s (or lines of credit) are under review. The OSFI would like to see the maximum LTV reduced from 80% to 65%. In addition to this proposed change, the OSFI would like to see Helocs amortized like a mortgage which means the interest only payment option is now under scrutiny.

Stunning TURN KEY piece of Edmonton Real Estate in St. Albert.  2-Storey home with attached garage has everything a growing family needs.  Located in quite cul de sac backing onto a quite farmer`s field, this 4 bedroom, 4 bathroom home boasts over approximately 2,286 sq.ft. of developed living space.  Main floor features a spacious living room, dining room and kitchen in an open concept with Maple hardwood floors throughout, with big widows overlooking a large West facing pie lot.  Upstairs you have a fantastic bonus room with computer desk, a Master suite with walk in closet and ensuite, 2 more bedrooms and another full bathroom.  BRAND NEW professionally developed basement with large windows features family room, bedroom and full bathroom.  Custom upgrades such as Maple  cabinets and fireplace mantel  in a rich ‘Spice shade`, recessed lighting, and approx. $10k of custom drapery and blinds  is  what really sets this home apart.  Other notable upgrades include:  laundry on main floor, A.C., and built in vacuum.  Lastly, the private backyard is fully fenced and landscaped with a 12x14 deck and stone patio with NO neighbours behind you!  Walking distance to 5 schools; minutes to Anthony Henday. Truly a perfect family home and shows a 10++.  60 Norris Crescent.  $549,900. MORE PHOTOS COMING JANUARY 3OTH!!!