Saskatoon Homes - Shah - Ahmed- selling saskatoon homes - Sasktoon Realestate - houses - homes

Since many buyers are turning to the internet to shop before they take a drive around neighbourhoods, photography can make the difference in selling your home quickly.
 
A picture says a thousand words, and with the right listing pictures, you can attract more people to your property by showing your home’s highlights. Below are tips on how you can take the best quality pictures of your property to showcase it properly. 
 
Clean the entire house before taking photos.
Never take photographs of a dirty home. Remove all trash cans from all rooms being photographed. Tidy up any clutter and remove personal photos and drawings from refrigerators and bulletin boards.
 
Think about the picture before you take it.
What are you trying to show in the photo?  Do you want to move or remove anything before you take it?
 
Highlight the best features of your home.
Do your rooms have spectacular views? You can take pictures of your rooms to show off their views. Let the potential purchaser imagine themselves standing in the room with the view. They will appreciate the picture more knowing where they will be able to enjoy the view when they purchase the home.
 
A general photography rule of thumb is the closer the subject, the better the photo.  However it may be useful to take a few steps back or use a wide-angle lens to give the viewer more context and makes your home seem more spacious.
 
Take a shot of every part of the house including living room, kitchen, dining room, and other key areas of your home.
 
Pay attention to lighting.
Lighting is the key to good photography,  and you must choose the optimum time of the day for the shot typically when the sun is behind you. If the front of the house faces east, the morning is the best time.  If the front faces west you want to take your pictures in the late afternoon.
A good general time of the day is around noon or early afternoon on a sunny day for most exterior pictures since the sun is overhead and there are few shadows.  If it is overcast you can set your camera to a lower shutter speed to absorb more light and create a brighter image.

The light source also affects colour. When the sun is lower in the sky, either in the morning or in the late afternoon, you get more intense colour. This time of day makes the sky pop blue and the house shows off its best colour. High noon overhead sunlight tends to wash out colour.

Cloudy and overcast days can often provide surprisingly wonderful diffused light that can bring out great colour, although shots like this lack the bright blue sky in the background.

For dramatic evening photography, turn on all the house lights, and take the picture after sunset but before it is totally dark.  You will see light coming out of the windows, however there will be enough exterior light to capture the details of the house. 

For interior room photography avoid mid day, since on sunny days the light coming in the windows will be too bright.  The best times are after daybreak and just before sunset.  Use a powerful flash or turn on all the lights.

Take many shots.
If you are using a digital camera, you can take multiple shots of the same room and then pick which one looks best. You can try different angles and pick the winning view of the room.

You can touch up your pictures on your computer software including brightening up a darker picture. After you have a look at your pictures, you will have a better idea of how to improve them. Some indoor pictures can look too warm due to the lighting. You can always reduce certain colours with your photo editing software to make it look more natural.

Consider hiring a professional real estate photographer. 
Many real estate agents and homeowners simply do not have the time, equipment, or skills necessary to take good photographs of a home or building they are listing for sale. Professional photography is provided by many brokerages as an optional service and the price is extremely reasonable.

Photos of your home are the first introduction of your new listing to the world. This is the visual element that captures the imagination of buyers and sends them running to contact you for a first look.

There are many factors that can affect the market value of your property, ranging from home improvements to the mood of the seller. All of this is a lot to internalize, but you can make an informed decision while pricing your home if you tackle these issues one at a time.

1. Location
Your home’s proximity to public transportation, train stations, shopping facilities, schools, etc., plays an import factor in determining your property’s market value. Every area has a high end and a low end. The market value of your property is affected by that reality. People that purchase homes in “lower end” areas expect to pay less than they would if they bought the same home in a “higher end” neighbourhood.

2. Features
One of the key factors in your home’s value is the features it provides. For example, some house styles are more popular with buyers than others. The age and size of your home compared to other available properties also plays a part in affecting your home’s value.

3. Condition
Potential buyers will take into account the condition of your home in deciding if they want to buy it and how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a top dollar sale than one that is lacking the most basic routine maintenance.

Experienced buyers look for important conditions like paints, floor coverings, walls, ceilings, floors, doors and windows. Buyers may also pay close attention to the plumbing, electricity work, repairs, bathrooms, kitchen, and so on.

4. Home Improvements
Most people think that home improvements are a sure way to increase the value of a home. Major home improvements are unquestionably important factors that affect the property value. Improvements like room additions, bedrooms, bathrooms, kitchens and other items like floor tiles, swimming pools, etc., can increase the value of your home. However, it only matters what those improvements are worth to the buyer.

5. Market Conditions
When the market is flooded with similar properties for sale and real estate buyers are scarce, you can expect to sell your home for less than you would if there was a shortage of supply and lots of eager potential homebuyers.

6. Seller Motivation
Seller motivation is also a major factor which affects the offer price made by the buyer. For example, if you bought a home in a new area you may be willing to accept a lower price to quickly complete the sale of your current home.

7. Marketing 
The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property. Your agent’s level of skill and expertise in the negotiating process will affect the amount of money you’ll be able to get for your home. Many people put more thought into what they’ll have for dinner tonight than who they will trust to market their most valuable asset. Don’t make the same mistake.   

The choices we make every day have a huge impact on living a healthy lifestyle. With just a little forethought and initiative, we can make our homes healthier and happier for all family members. The following recommendations can be implemented immediately and won't cost you anything.

1. Keep Pollutants Outside
Make it a habit to take your shoes off as soon as you walk in the door of your home. Place a chair or bench near the door and place a shoe basket or shelf near it to make it easier for your family and visitors to take off their shoes. This will cut down the amount of dirt and allergens brought into your home.

2. Use Natural Cleansers 
Commercial cleansers may make cleaning easier, but they may also contain carcinogenic ingredients, respiratory irritants and even pesticides. Try safer cleansers such as a mixture of baking soda and vinegar to clean tubs and toilets, salt to scrub kitchen sinks and borax for laundry.

Once you try cleaning with non-toxic cleaners you'll find it hard to believe you ever used harsh chemicals. Not only do they work just as well, they smell better, don't make you dizzy and don't pose a health risk.

3. Clean Smarter and More Often 
Dust mites, mould and pet dander are major triggers of allergies and asthma attacks. Keep dust to a minimum, dust every few days with a slightly damp cloth, to prevent the dust from returning to the air. Avoid furnishings that trap dust, such as drapes, carpeting, throw pillows and stuffed animals. Wash curtains and slip covers regularly in hot water.

Use a vacuum with a high-efficiency particulate air filter, and use it twice a week. If you are building a new home consider a central vacuum system that vents outside. This will help remove dust and debris from settling back into your home.

4. Breath Fresh Air
Fresh air saturated with oxygen is essential for healthy indoor living. A properly ventilated home will also help release humidity that may build up, condense and cause bacteria, dust mites and mould.

Whenever possible, open the windows to allow old air out and fresh air in. In colder or humid months, use a mechanical ventilation system to help keep indoor air fresh, dry and comfortable.

5. Stop Smoking
Don't smoke in your home or let visitors do so. Small children are most vulnerable to the health risks of second-hand smoke such as allergies and respiratory disease. If you must smoke, go outside. Moving to another room or opening a window is not enough to protect your children.

6. Drink Clean Water
Clean water is essential for good health. The glass of water you take from the tap has had a long eventful journey but it is clean enough to drink. However, it could be cleaner and better for you if you use a good in-house water filtering system.  To keep your water filter functioning effectively, it is important to change the filter cartridges on a regular basis.

If your water comes from a municipal supply it is tested regularly by the water authority. If you have a private drinking water well, test it periodically.

7. Inspire Healthy Eating Habits
Fresh fruit is best for you and your kids. Keep a bowl of fresh fruit and vegetables on your kitchen counter to encourage healthy eating and cut down on bad snacking habits. Choose different colours to give you the widest variety of vitamins, minerals and nutrients that your body needs. Choose whole fruit over fruit juice. Often juice has lots of added sugar and preserving chemicals. Whole fruit has more fibre and will leave you feeling more satisfied.

8. Give Your House a Mood Boost
A naturally lit home helps ease the blues, insomnia and may even boost concentration. Whenever possible open the curtains and allow sunlight in. Equip your home with broad-spectrum light bulbs that closely resemble daylight.

Keep a bright bunch of flowers in the living room. A vase of vibrant flowers along with green plants help generate a positive mood around the house and helps reduce stress, fatigue and illness. Indoor green plants also help reduce carbon monoxide.

Cut down on heavy and loud music. Play soft, classical or country background music to create an easy atmosphere to help you unwind.

9. Encourage Family Activities
Reduce the use of TV in your home and encourage family activities. Excessive TV watching has been linked to obesity and type 2 diabetes.

Place a Chess or board game in your living room. Playing board games familiarizes young children with letters and numbers, builds hand-eye coordination and encourages kids of all ages to interact with others. Board games can be a steppingstone for discussion about almost anything. Strategy games like Chess or Monopoly provide opportunities to talk about not only the game itself, but how it applies to the real world, real problems, etc. and most importantly helps build family bonds.

In today’s society, credit is our gateway to purchasing big tickets items like a home, cars, electronics and many other daily needs. When you buy something on credit you are responsible to repay it under the contract with the lender. If you do not pay the debt according to the terms and agreement your credit score will be affected. When you have bad credit you will be denied financing up to 90% of the time because the lender looks at you as a serious risk, which is not good.
 
So how do you build and maintain a good credit?
 
Establish chequing and savings bank accounts
This is the basic step necessary to build credit. Lenders see bank accounts as signs of stability. Opening a chequing and savings accounts is one of the few things young people can do to start building a financial history. While you can't get a credit card in your own name until you're 18, many banks have no problem letting you open an account.
 
Always pay your bills on time
This is one of the major factors that keeps people from increasing their credit score. When you make a late payment, the lender will mark your credit and this will substantially affect your credit score. Some people do not listen to this and charge more than they can afford. They get caught in a trap that they can never get themselves out of because they can barely afford to pay the payments.
 
Check your credit report regularly
Your credit report is available to you at little or no charge from major credit reporting agencies like TransUnion or Equifax.
 
Your credit report contains all your financial obligations and accounts associated with you. This is what banks, mortgage, credit card and auto loan companies use when reviewing your application. Every transaction or purchase that you have made shows on your credit report.
 
Check your credit report for inconsistencies, incorrect information or accounts that you do not know about. If there are any corrections that need to be made, follow up with the credit bureaus.
 
Do not spend more than your credit limit 
A limit is set for you so you do not go over it. A creditor looks at you and thinks that you spend beyond your means and instead of you trying to improve your score you are hurting it.
 
The best way to avoid going into serious debt or financial trouble is to avoid using credit at all, use cash or your bank account instead. If you are in a situation where it is an emergency use credit and then pay it off immediately. The problem with today’s society is that we spend way more than we make and this is what gets us all in trouble.

Over the years, there have been many changes in style, technology, and function of windows. When deciding whether to repair or replace your existing windows, begin by considering their age and condition. As well, poorly designed, constructed and placed windows can cost money through heat or cooling loss.

If your home is more than 30 years old and still has the original windows, chances are your windows are not keeping you as warm or as cool as well-placed and installed newer models. But, there are measures you can take to increase the efficiency of your older windows:

• Tighten the seal around the windows with weather-stripping. There are many different types of weather-stripping available for use on wood, metal, aluminum and vinyl. One of the easiest to apply is caulking cord which comes in a roll. You simply press the cord into place to make a tight seal.
• Every window not made of insulated glass should have a storm window. If your home has storm windows, ensure they are in good condition and install them properly before the cold season begins. When those icy winter winds start blowing, both you and your pocketbook will notice if your windows offer good protection.
• If your home doesn't have storm windows, or they are in poor condition, you can get as good or better protection using heavy-gauge clear plastic sheeting. Seal it tightly over your existing windows and you will have an inexpensive and effective alternative to storm windows.

Five signs that it's time to replace your windows:

1. If a window develops ice or a frosty glaze inside a window pane, poor ventilation or insufficient insulation may be to blame.
2. If you feel a cold draft in the winter or a warm draft during the summer when sitting near your window, it is a clear sign of poor insulation. This problem can significantly increase your energy bill.
3. If you stand inside your house with a candle lit near a window's edge and the flame flickers or goes out, your weather stripping may need to be replaced.
4. If your window no longer remains open on its own, requiring you to prop it open, it is no longer in good condition.
5. If your windows become fogged with condensation there may be a seal failure. Seal failures are usually fixed by replacing either the glazing or the entire window.

Replacing windows
Modern windows not only beautify the appearance of a home, they bring sunlight in during winter, while preventing the warmth created from escaping outdoors. Windows also insulate a home from heat during the summer and keep cooled air from escaping. Today windows combine science and technologies that increase energy efficiency and actually reduce heating and air conditioning costs.

Replacing existing windows with more energy efficient models doesn't have to be done all at once. Begin by replacing the ones causing the most heat loss, such as the large picture windows in your living and dining rooms. Replacing windows in stages over a period of years costs less up front and still increases energy efficiency.

Common window types include: double-hung, casement, stationary, awning and horizontal sliding. They may be made of wood, aluminum or vinyl or a combination of these materials. Almost all feature insulated glass and easy-to-clean designs that provide tight seals and eliminate heat loss.

Whether you plan to install new windows yourself or have them installed professionally, be sure to visit a number of suppliers and study the various products and options on the market. You want to select windows that complement the appearance of your home, increase energy efficiency and give you the most value for your money.

Quality installed replacement windows will give your home protection from the outside elements and provide a great overall aesthetic look from the curb while meeting the energy related requirements required for rebates and tax credit programs.

In her new one-bedroom loft in the lakeshore neighbourhood, Sarah enjoys a stunning city view. By focusing on what she was creating in her new space instead of what she was giving up, she was not only able to simplify her lifestyle but found new ways to use some of her most prized possessions.

Less square footage doesn't necessarily equate to less living. Sarah said while entertaining a small group of friends in here stunning city view location within walking distance of her workplace and health club in downtown neighbourhood.

Sarah's new space fits her tastes and lifestyle, having lived with her husband Jim and there two children for over 22 years, she realized that she was a slave to her house. "My two kids had moved out, and the idea of using only two rooms (the bedroom and kitchen) out of six, didn’t make any sense. So with some anxiety, we decided to downsize. I joked with my husband that we would have to give up a lot if we moved into a condominium. What we gave up was flights of stairs, shovelling snow, putting out the garbage, raking leaves, cleaning out the eaves troughs, maintaining the furnace, and landscaping to name a few!" Sarah Said.

"Downsizing is about committing to change as much as it is about deciding where to put the furniture. Instead of dwelling on the negative and what you're leaving behind, think about what the positives are; a smaller space often takes less maintenance, leaving more time for hobbies" she adds.

While moving to her new place, Sarah had to give up many of her possessions, yet by focusing on what she was creating instead of what she was giving up, she was not only able to simplify her lifestyle but found new ways to use some of her most prized possessions.

Condos life has many advantages, because the space is smaller, you may be able to spend more on the quality of live and details. For example, you may be able to afford Italian marble for your kitchen counters because there's less counter space.

As a busy downtown Realtor, Sarah says most of her downsizing clients have decent equity in their existing homes and are moving into the city because they want a lifestyle change. Although they are willing to give up square footage, they still want amenities such as fitness facilities, kitchens with granite counters as well as stainless appliances and spacious master suites.

Condos offer more opportunities to socialize; you will meet neighbours in the halls, the lobby and the laundry room. You will also have the opportunity to meet (and argue!) with them at your association's monthly board meetings. Condo living is a good choice for low-key, sociable types who enjoy getting to know other residents. When buying a condo, keep in mind that happy neighbours are a sign of a responsive, well managed building.

Most condos are equipped with security doors and intercom systems. Many also offer alarms, security cameras, and 24 hour doormen and lots of neighbours. Security conscious buyers and extensive travelers can rest assured that their homes will be watched and maintained while they are away.

A private, waterfront lot with magnificent views is way out of reach for most buyers; Condos ownership makes this attainable for most buyers. With access to luxury, high-end locations such as city center, waterfront, or art-district, is one of biggest perks that condos offer over single family homes.

“Now that I’m a happy condo owner I’ve discovered that my downsized lifestyle offers many upsides. My husband and I are having the time of our lives. We have adopted an active lifestyle, with long walks on nature trails and short hops to local attractions by public transport. We now take in live theatre, music, and ballet. We try out new restaurants and get “recharged” by the breathtaking beauty of the waterfront” Sarah Said.

On average, condos are much more affordable than houses, making them an excellent fit for individuals who want to lower or limit their housing costs. Clearly condos are the economical choice for retirees hoping to downsize, or first time homebuyers trying to enter high-end markets.

Choosing the right mortgage is as important a decision as choosing the right home. Getting the best deal on a mortgage loan can minimize your monthly payments and maximize the value of the investment you have made in your home. There are many different types of mortgage loans available to home buyers today, and it is important to understand the differences, advantages and disadvantages of each type of mortgage loan.

There are several elements of a loan that should be analyzed. While one of these elements may suggest one type of loan, another may call for a different type. You must weigh each ingredient separately and collectively. You will find that your answers to the questions below will ultimately determine the type of mortgage that best fits your needs.

How long do you plan to stay in this home?
Five years? Ten years? Thirty years? The length of time you will be in the home will certainly play a part in determining which loan to apply for. If you only plan to be in the home for 5–7 years or less, you should seriously consider an adjustable rate loan. If you intend on staying 20–30 years, a fixed rate mortgage may be right for you.

How much risk are you willing to accept?
If you are the type of buyer that needs to know exactly what you will be paying each month for the term of the mortgage, a fixed rate mortgage will fulfill this need. The fixed rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.

How much can you afford?
Most lenders set lending ratios that ensure mortgage payments never exceeds more than a third of a person’s income. However, this may still be too much of a stretch for you, especially if your have other expenses, potential future income changes or simply a lifestyle to uphold. Once you find a home you love, start crunching numbers. Can you really afford the mortgage payments, and are you willing to cut your expenses and save every month? Make sure you select a mortgage plan with a monthly payment that is within your means.

How much cash do you have available for upfront costs?
If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quicker.

Keep in mind that you’ll have closing costs and fees to pay in addition to your down payment. If you don’t have much cash saved for your upfront costs, don’t despair. You may need to accept a higher monthly payment or even lower your monthly obligation by choosing an adjustable rate mortgage.

In addition to choosing a type of loan, you must also consider which lender to use. Once again, several factors will influence your decision.

Annual Percentage Rate
This is most likely the best way to make an "apples-to-apples" comparison of lenders. The Annual Percentage Rate reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.

Interest Rate
Find out the rate the lender will commit and how long the lender will guarantee it. Get any commitments in writing. As with any transaction, if it isn’t in writing it doesn’t exist.

Points and Fees
These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.

Loan Approval
Both approval and funding time should be considered. You don’t want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.

Lender Reputation
Don’t rely solely on someone else’s recommendation. You, not your friend, must feel comfortable with your lender. If you do feel good about your lender and trust him, it will be much easier to trust his advice on what kind of mortgage will best suit your needs.

Numerous people are likely going to spend a considerable amount of time browsing through your home while it is on the market. If you are living in the home while it is for sale, your personal things will be on show too and potential buyers might look through drawers and other items that are inside your home. Your privacy and security may become an issue when showing your home, so it is important to consider all your options before you welcome someone into your home.

For many individuals, it is very important for them to protect their privacy, while others are simply concerned that buyers will make assumptions about them and judge them instead of simply judging their home. However, the importance of protecting your privacy is all the same and that goes for anything personal from financial information, such as cheque books to bank statements and personal letters.

Protect your documents
Keep in mind that a potential buyer may open cabinets or drawers—this is not considered snooping. Buyers can innocently tug on a drawer to inspect its construction or depth and find important documents that you might not intend for anyone to see.

Don't leave mail where anybody can find it
Many sellers make the mistake of leaving piles of opened mail neatly stacked on the kitchen counter or somewhere else in the home. By leaving your correspondence out on the table, a potential buyer can find out about your credit card debt, whether you have filed for bankruptcy and other private information that you probably don't want the seller to be aware of. Not only is this an invasion of your privacy, it can also change the offers that you receive from buyers. If you have a stack of mail from a collection agency, the buyer will know you are desperate to make a sale and will likely propose far under the list price.

Remove personal effects from your walls
From diplomas and religious artifacts to wedding certificates and personal photos, don't provide buyers with any personal information about yourself or your family. De-personalizing is also an important move to make when staging your home for sale anyway, so you can actually accomplish two things by removing the personal effects from your home.

Don't leave your computer up and running during showings
Gaining personal information from your computer takes only minutes for a professional hacker or thief, so be proactive and turn your computer off before potential buyers arrive.

Before you put your home on the market, empty out drawers, stage closets and pack up anything personal including medications. Disassociate yourself with your home—remind yourself that it is a house—a product to be sold on an open market that is bound to see plenty of new faces throughout the term of the selling process.

Consider renting a locker at your local bank and store away your jewelry and other valuable items. It is better to be safe than sorry.

Shah Ahmed 306 3412739 www.skagent.ca

 

A clean and organized garage saves you time by keeping essentials in clear view, so you can find what you need without tripping over items or causing an avalanche whenever you pull something from the bottom of a pile.

You'll also save money because your sporting goods and tools will last longer when they’re stored safe from moisture, heavy weights and dust. Even your car will be protected from falling skis.

Step 1: Aim for spotless clean and clutter free
Start by cleaning out the junk. Release the clutter of your garage by selling or throwing away the things you never use. Getting rid of unneeded possessions makes more space for the ones you do need and use. Once that clutter is dwindled down to the necessities, organize it by category: athletic supplies, lawn and garden tools, carpentry tools, etc.

Step 2: Use suitable storage units
Take a look at what’s left and decide what storage elements would work best for you.

The essentials include:

• Closed storage: Make sure to include at least one closed-door, lockable unit. It's essential for keeping poisons like antifreeze, plant food or pest control products and sharp tools behind a locked door.
• Open shelving: Shelves are best for frequently used items which you need readily available and within reach. Vented metal styles, wood slats, or vented plastic minimize the volume of dust that can collect.
•  Hooks, clamps, and holders: These allow you to make use of vertical space, getting big items like bikes, trikes and paddles, rakes and brooms off the ground and out of your way. • Bags: Most wall-mounted garage organization systems include clamp-on mesh bags that make it easy to store soccer balls, basketballs, tennis balls, etc.
• Boxes and bins: Group irregular items and place them in big bins so you can put them under a shelving unit or work table. Group them accordingly so items are easy to find: bags of soil, grass seeds, etc. Boxes and baskets can also hold smaller items neatly on shelves.

Step 3: Paint and stain.

The floor can be transformed with acid stain for concrete or a heavy-duty floor paint. If you plan to park your car on your newly painted floor, lay a sheet of cardboard down to catch drips of oil. The garage walls can be painted as well, especially if they still look like they're part of a construction site. Don't feel like you have to limit yourself to the traditional white walls. Get creative!

Step 4: Make it your second home

Another major decision to be made prior to purchase is what kind of work areas you will need, and what kind of counter tops are appropriate for those areas. For instance, if you want to use garage space as a hobby area, you might want a sink area or solid surface counters. If you enjoy woodworking, you might need a wooden counter top. Figure out where these areas will be located and roughly sketch out how the area should look. Imagine yourself standing at the work area and think about placement of things you will use. Thinking through this process will certainly make the space more user-friendly.

Ready to get your garage in order? Following those tips will help you find a place for everything and allow you to transform that dusty garage into something spotless in a short time.

Finance Minister Jim Flaherty recently unveiled new mortgage rules aimed at stopping housing speculators and ensuring homebuyers can adequately handle their debts when interest rates inevitably rise. Mr. Flaherty stressed that Canada's real estate market is healthy, and that the new rules, which take effect April 19th, would stop “negative trends” from development.

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," commented Minister Flaherty.

"The underlying message is that Canadians should be prudent in the obligations they take on because we can all expect that mortgage interest rates will rise over time," Flaherty added.

Here is a quick look at the changes which apply to government-backed insured mortgages:

1. Borrowers must now qualify based on a five-year fixed rate even if they choose a mortgage with a lower interest rate and shorter term. The government’s rationale for this change is that it will help borrowers prepare for higher rates, although it may squeeze the purchasing power of home buyers. It remains unclear whether borrowers must qualify at the five-year posted rate or the five-year discounted rate.

2. The maximum amount Canadians can withdraw in refinancing their mortgages will be reduced to 90% of the value of their homes, instead of 95%. This change will help ensure home ownership is a more effective way to save. The impact of this change is expected to be minimal as relatively few homeowners withdraw equity from their homes to this extent.

3. A minimum down payment of 20% will be needed for government-backed mortgage insurance on non-owner-occupied properties “purchased for speculation,” which realistically means rental properties. While this measure is intended to hamper the speculative buying of properties by reducing the leverage of buyers, it will also impact those buying real estate for general investment purposes.

How will these changes affect the Canadian real estate market?

For most consumers, the changes are unlikely to make it harder to get a mortgage but it could reduce the size of the mortgage an individual consumer can negotiate with a lender. And they might have to look at buying slightly less expensive properties.

People buying real estate for investment purposes including those looking for rental properties may find it harder to get into the market as they have to shell out more money form their own savings.

Undoubtedly there will be a rush of mortgage applications to beat the April 19th deadline. However it is expected some lenders will start to implement these guidelines before April 19th.

Some volatility is expected in the housing market in the short term as home buyers rush to beat the April 19th date. After that, the activity will likely fade because so many buyers moved up their purchases. This could end up softening the sharp year-over-year price increases that have been characteristic in many cities recently.

The economic implications of this rule change are unlikely to be severe, and we expect the housing market to slow its ascent without crashing down.