About South, AB

Recent changes in federal regulations on mortgages have eliminated the popular zero-downpayment financing programs that were available through the major mortgage default insurers.

This does not mean that you will be unable to purchase a home without a minimum of 5% downpayment saved.

All Source Mortgages uses several lenders who have options available even if you don't have 5% or more saved towards the purchase of a home. It is important that you get in touch with a mortgage professional in order to discuss all of your options.

Fast Facts about Downpayment programs offered by All Source Mortgages

Do I qualify for a mortgage with Less than 5% downpayment?

As long as you can prove a strong credit history IE: established credit history combined with strong credit score, you may be eligible for a cash-back or flex-down mortgage, essentially where the downpayment amount is borrowed.

What is strong credit score?

A credit score of 650 or above and minimum of 24 months of revolving credit (IE credit card/line of credit) is typically the minimum requirement used to qualify for these types of programs.

Does "Zero-down" mean that I don't need any money saved to buy a home?

Lenders will still require you to prove savings of at least 1.5% of the purchase price of home. This amount is to verify that you will have enough money on hand at possession to pay for closing fees such as lawyer's fees, property tax adjustments etc. Ask your mortgage broker or lawyer for a complete list of expected costs of purchasing a home.

I have a few credit "issues", but would still like to purchase a home.

We do have access to lenders that are willing to provide mortgage financing even if you don't have A credit. In cases where credit score is under 650, the rate that you will be offered and downpayment amount will likelybe related to your credit score. Typically, the lower the score, the higher the rate due to the risk associated with the deal. It is best that you discuss your credit history with your Mortgage Development Manager in order to determine your options.

For more Mortgage Solutions please contact Shaun today!!

I often hear comments about why home sellers and buyers are frozen in their tracks right now. Here are some of the things I am hearing and my responses on why it might not all be true:

Comment:

It's not the time to buy.. prime rate is dropping and I will wait until it hits bottom.

Response:

If you have a crystal ball, I would love to borrow it! Having a husband who is a mortgage specialist in Lethbridge, I have learned that even those in the know don't know when, how much and what direction rates will go. This excerpt from yesterday's Toronto Star says it all:

"Canada's big banks passed on the full value of the Bank of Canada's quarter percentage point interest rate cut yesterday, making it cheaper for consumers and businesses to borrow.

"The outlook for growth and inflation in Canada is now more uncertain than usual," the bank said in a statement after reducing its overnight rate to 2.25 per cent.

Canada's big banks followed suit late in the day, cutting their prime lending rates, the basis for many loans, to 4 per cent.

What kind of insanely cheap rate are buyer's looking for... it really doesn't get much better than this does it? Good rates, hundreds of homes to choose from... take your pick!

Comment:

It's not the time to sell. My home's value is not at it's peak and I will wait it out.

Response:

If you are moving laterally within a market, you aren't going to feel the effect of a lower market value of your current home as you will be replacing it with a home valued within the same type of market. We all know that real estate is cyclical. If you are looking to upgrade, you will make your money in your next home when the market swings upwards again. And what a fantastic time to buy... have you ever seen a better selection!

Comment:

The economy is tanking and I will squirrel my money into GIC's and bonds rather than invest in real estate.

Response:

Are you aware that Lethbridge currently has a 0.8% vacancy rate? Are you aware that rents have been steadily increasing and that all you need to do to get your property rented out is whisper to your neighbor that you have a home for rent? Oh, and did I already mention that it's ridiculously cheap to borrow money right now?

So, If you really must wait, then do so. I'm not sure who said freeze or why...but I would suggest looking through the cloud of bad press and eternal pessimists and see the golden opportunities lurking.

Visit us for more information on Lethbridge Real Estate

My apologies for getting this out so late... I keep hearing talk about this slowing real estate market but I've been swamped! With that said, on with the report!

When comparing the September 2008 stats to those of August 2008, we again see a decline in the the number of new listings in Lethbridge (down from 534 to 460) followed by a parallel decline in the number of listings that are expiring unsold (174 in August to 116 in September). Perhaps an indication that only those who are serious about selling are putting out a "For Sale" sign and the days of fishing for top dollar are dead and gone. Surprisingly though, the total number of homes that sold across the board in the month of September (228) is only down slightly from August (236).

One stat that sticks out to me is the comparison between the homes sold with respect to new listings. August stats came in at 44% (homes that sold compared to new listings) while September is telling us 50%.What these stats say to me in a nutshell is that on average there are roughly 50 qualified buyers for every 100 homes for sale. They are taking their time, taking their pick and taking advantage of this buyer's market. So what does this mean for buyers and sellers alike?

Buyers: This is an overstocked inventory and you have the opportunity to look for the house that is "On Sale". With that said, recent years of quick sales and inflated prices led home sellers to falsely believe that their "seller's market" would last forever. Real estate is cyclical and ever changing. Don't wait until your opportunity has passed.

Sellers: If you want a sale, make sure you are priced right and that your home's "value" is prominently displayed when all your and your REALTOR's hard work manages to get one of those few buyers through your front door.

Visit us for more information on Lethbridge Real Estate.

Lethbridge Real Estate Board

MLS ® Statistic Report

[SEPTEMBER 2008 ]

The dramatically rising cost of home heating is a bothersome concern for most Canadians. Heating your home efficiently this winter will be the key to keeping your energy costs under control. Here are some quick, easy, and most importantly, inexpensive ways to maximize warmth and minimize impact to your pocketbook:

- Adjust Your Personal Thermostat: Wear a sweater and dress warmly around the house. When you're stationary - such as when watching television, using the computer or reading - you're most susceptible to a chill, so snuggle under a throw or blanket. Since hot air rises, change the direction of ceiling fans to blow warmer air back down to you. Counteract the icy influence of cooler floors with thick socks and slippers or possibly area rugs.

- Adjust Your Home Thermostat: It goes without saying that the less energy you use, the lower your heating bills will be. Set your thermostat at 21°C when you're home awake, 18°C when you're sleeping and 15°C when you're out of the house. Installing a programmable thermostat can reduce your heating bill by as much as 20 per cent.

- Let the Sun Shine In: During daylight hours, keep your curtains open and let the sun help heat your home naturally. To prevent this solar heat from escaping, insulate your windows with plastic film to reduce heat loss by 50 per cent. Also consider purchasing insulating curtains, which are curtains that have a foam thermal backing. They are more expensive, but pay for themselves within 7 years.

- Seal the Leaks: Caulk, seal and weather strip around windows and doorframes, baseboards, ducting and electrical outlets to save up to 20 per cent on your heating bill. Remember to close your fireplace flue when you're not enjoying a fire. Install a door sweep to resist against under-the-door drafts. Turn off the heat supply and close the door to unused rooms, such as a guest bedroom. Close interior doors leading to hallways or stairways to keep the heat where it's needed most.

August stats are in and it is noteworthy to point out that the total listings for the month (535) were down significantly when compared to the 670 homes in Lethbridge listed for sale last month. That's a 20% decrease in the amount of homes listed for sale. We can interpret from this that an increasing amount of home owners are realizing that if there is not significant motivation to sell, now may not be the ideal time to do so.

This decrease also had an impact on the amount of expired listings bringing the year to date number of expired listings down from 220% to 211%. Although this percentage of homes left unsold is still much higher than previous years, we can see that the shift is still happening daily.

With all this said, people still buy and sell homes in Lethbridge every day. The need to downsize or upgrade, a new job or relocation, a new start... the reasons to make a move are plenty. The services of a REALTOR® are now more valuable than ever in making sure the process is effective and goes smoothly.

Visit us for more information on Lethbridge Real Estate.

Lethbridge Real Estate Board

MLS ® Statistic Report

[AUGUST 2008 ]