30 Year Mortgages are back.

Starting August 1st, first time home buyers purchasing new home will be allowed to obtain a 30 year amortization instead of 25 years which will help lower your monthly mortgage payments. There are a few catches.

1. Can not be a new build or spec home

2. First time buyer will be anyone who has not owned a home in the last 4 years.

There is also a change to RRSP withdrawals for first-time home buyers. The limit presently is a max withdrawal of $35,000 per person. This is being raised to $60,000. This will take effect April 16th.

Any question, feel free to contact us.

The Government of Alberta announced an unexpected change to the Land Titles Registration Fee during the release of its Budget 2024 on February 29, 2024.

Homeowners will soon see an exponential increase in closing costs. Currently, consumers pay a $50.00 fee and an additional $2.00 for every $5,000 of the property's purchase price for the title transfer and an additional $50.00 fee plus $1.50 for every $5,000 of the mortgage amount.

With this change, homeowners will now pay a $50.00 fee and an additional $5.00 for every $5,000 of the property's purchase price for the title transfer, and an additional $50.00 fee plus $5.00 for every $5,000 of the mortgage amount.

For example, the price of registering a $450,000 home with a 10% down payment, will jump to $955, an increase of $553.50 from the current fees.

The increased costs are intended to provide support for the continued modernization of the registries system. No implementation date has been announced, but we will inform members once we receive more information.

Graphic provided by the Government of Alberta. Please note: there is an error as it should be cited as a 10% down payment for proper calculations.

As an Association, we are disappointed by yesterday's announcement as it came as a surprise to many within the industry. Purchasing a home is one of the biggest financial decisions that consumers will make, and the additional cost could inhibit or impact the dream of homeownership for many.

Although Alberta's land titles registration fee remains lower than other provinces, we know this will have a direct impact on the clients you serve every day. The Alberta real estate association has committed to advocating for the subsequent removal of the increased fee once the land titles modernization project has been completed.

Read more on home buying closing costs

Yes. You read that correctly. Canada now has 40 year mortgages. 

The government just announced 40 year mortgage amortizations to help Canadians lower their monthly payments. When I first heard this, I thought there may be some help for those who are struggling to make their monthly payments. After doing more research, I discovered there is a catch and personally I think this is a joke! 

Advantages

- Slightly lower payments

Disadvantages

- Higher interest Rate 

- Canada’s major banks do not offer 40-year mortgages

- Requires a minimum down payment of at least 20%

- Takes several more years to pay off your mortgage 

The only people this new 40 year mortgage amortizations will help are the investors who need to lower monthly payments on their revenue properties. This will enable landlords to keep rents a bit lower. But for most Canadians who are struggling to make current mortgage payments with today's interest rates - this is a complete joke. Even if you have the 20% equity in your current home and switch to a private lender for a 40-year mortgage, you will still be paying about a 9% interest rate. This makes absolutely no sense.  

Read more on 40-year mortgages

What is a 15 Minute City and does Edmonton have them?

The concept of 15-minute cities is an urban planning and design idea that aims to create more sustainable, livable, and interconnected communities. The idea is to organize cities in such a way that residents can meet most of their daily needs within a 15-minute walk or bike ride from their homes. This concept was popularized by Professor Carlos Moreno, a French-Colombian researcher.

In a 15-minute city, residents are in close proximatity of essential services such as grocery stores, schools, workplaces, healthcare facilities, and recreational areas are located within a short distance from residential areas. The Streets are designed to be pedestrian and cyclist-friendly, with well-maintained sidewalks, bike lanes, and green spaces for a high walkability.

It is a mixed land use developement which is diversified within neighborhoods, promoting a mix of residential, commercial, and recreational spaces. This reduces the need for extensive commuting and an emphasis on supporting local businesses, encouraging a more self-sufficient local economy.

The goal of 15-minute cities is to reduce reliance on cars, decrease commute times, promote a sense of community, and enhance the overall quality of life for residents. The concept is being explored and implemented in various cities around the world as a response to urbanization challenges and the desire for more sustainable urban living.

Does Edmonton offer 15 minute cities

Edmonton offers several communities which are close to 15-minute cities. However, Edmonton has plans in place to create more in the Orchards, Meadows and Heritage Valley.  These neighborhoods offer several potential benefits that contribute to a more sustainable, enjoyable, and community-oriented lifestyle especially for those who work remotetly.

Overall, the 15-minute city concept aims to create urban environments that prioritize the well-being of residents, promote sustainable living practices, and build strong, interconnected communities. It aligns with the growing awareness of the importance of sustainable development and the desire for a more balanced and fulfilling urban lifestyle.

What is the importance of RMS?

Residential Measurement Standard Principles

REALTORS® must use the RMS when measuring and advertising properties. Measurements must be calculated to within 2% of the RMS size. RMS measurements are only included where the structure is heated and insulated. For detached properties, exterior measurements are used. For apartment style condos, interior perimeter walls are used at floor level.There are specific guidelines for measuring sloped ceilings, walkout basements, bay windows, sunrooms, dormers and cantilevers.

What happens if the RMS is incorrect

If the RMS is incorrect, you or REALTOR® can be held liable for the discrepancy and a buyer has a legal right to sue you for fraudulent misrepresentation. Most REALTORS® hire out a licensed RMS Company to ensure the size of your home is advertised accurately.

How to Accurately Use the Residential Measurement Standard

Alberta REALTOR® must use the Residential Measurement Standard (RMS) when measuring residential properties. This measurement standard helps consumers easily and accurately compare different types of residential properties.

The RMS offers a consistent means of representing the property above grade space. Among other things, the RMS sets out what parts of a property can be included in its measured-area. For example, if a room has a dormer with a ceiling height of only 4 feet, is it included as floor space? What about finished basements that are entirely below grade? 

When stating the area of a residential property, your REALTOR® must follow the RMS principles:

• Alberta REALTORS® must use the RMS.
• Identify if the measurement system is metric or imperial, and apply it consistently. Measurements must be calculated to within 2% of the RMS size.
• For detached properties, measure the property using the exterior wall at the foundation.
• For properties with common walls, such as half-duplexes, townhouses, and apartments, measure the interior perimeter walls (paint-to-paint) at floor level.
• Include floor levels that are entirely above grade. Below grade levels must not be included in the RMS area. If you have a split level, this may include two or three levels depending on where the grade sits.
• Include all additions to the main structure above grade areas within the structure if they are heated and insulated.
• The property must have a minimum floor-to-ceiling height of 7 feet. If the ceiling is sloped, the area with a floor-to-ceiling- height of at least 5 feet is included in the RMS area, provided there is a ceiling height of 7 feet somewhere in the room. This can eliminate bay window sitting areas.
• Exclude open areas that have no floor, such as vaulted areas.

Your REALTOR® also has a responsibility to ensure you understand the RMS and its implications, and is required to discuss it with you. This discussion will help you make informed decisions about the size and suitability of properties.

For more information about the RMS, you can read the Consumer Guide to the Residential Measurement Standard in Alberta.

Do houses in Edmonton have radon and how concerned should you be?

What is Radon?

Radon is an odourless, tasteless, colourless radioactive gas that is the by-product of uranium decay. Uranium occurs naturally in soil and rock formations, and creates uranium deposits, some Canadain provinces such as Alberta and Saskatchewan, have higher radon levels.

Radon seeps through the earth and into basements, where it can become trapped because of the efficient way our homes are sealed from the outside elements. Prolonged exposure to radon can lead to health problems, including lung cancer. In fact, after smoking, radon gas is the leading cause of lung cancer.

The Alberta Building Code 2014 included new requirements to protect homes from radon. The requirements came into effect in late 2015, and include, among other things, that new homes require a properly located radon rough-in or passive pipe in the basement, which can make it easier (and cheaper) to install a radon mitigation device in the future if it’s needed.

Does your Edmonton house have Radon?

It is important to know that homes anywhere in Canada can have dangerous radon levels. However, some of the homes in the prairie provinces have the highest average level of radon.

Radon Gas Map, Canada. Source: Radon Environmental Management Corporation. 2011

How to test for radon

There are a few companies in Edmonton which will test for radon. This is becoming a more common contingency for home buyers. Long-term testing: tests of at least 90 days during the heating period (fall, winter, and spring) or during the height of summer when you may have air conditioning running provide reliable for determining radon levels.

Short-term testing: in Canada, some entities market and recommend short-term testing. Health Canada states short-term tests are not acceptable to assess radon levels as radon levels can vary significantly over time. Do not be misled, short-term tests do not provide buyers and sellers with an accurate indication of the likelihood of adverse radon levels.

"Home Sweet Home" & Covid 19

During the pandemic, canadian homes became offices, movie theatres, classrooms, gyms, and staycation destinations. We spent more time at home and out of necessity, did many renovations and additions to our homes. According to a recent survey conducted by the Royal Bank of Canada in 2020, fourty percent of respondents renovated their property or intended to renovate thier homes during the pandemic. 

Home offices became essential workspaces and online schools. Backyard sheds, spare bedrooms, and attics were remodeled into home offices and schoolrooms. Garages and basements were converted to home gyms. Gardening became a new trending hobby for many Edmontonians and RV became a hot item for nearby camping.

During the pandemic, the demand for new homes with potential basement suites and side entrances skyrocketed. Houses with triple garages and acreages within a half-hour of our city also became hot items. Another increase in Edmonton home sales were near our river valleys in the Riverbend, Terwillegar, and Riverview districts.

Condominium owners fell short to make a profit in this pandemic. Unless your condo was priced to sell, it sat on the market for a long period of time. Many condo owners chose to rent out their units and take advantage of the low-interest rates to purchase a single-family detached house with still acquiring some residual income.