CMHC Tightens Lending Criteria, but Buyers Still Have Lots of Options
On July 1, 2020, CMHC modified their lending criteria for insured mortgages to require buyers to have stronger qualifications before owning a home. These adjustments to the requirements include an increase in credit score, a need to have less percentage of income be designated for housing expenses and placing limitations on borrowed down payments. Across Alberta, the result is about a nine per cent average reduction in purchasing power for any high-ratio mortgage borrowers.
While any change to decrease the qualifying power of a buyer would normally be expected to put downward pressure on prices, in this case, buyers have two other mortgage insurance options for their high-ratio mortgage. Genworth and Canada Guarantee are two private mortgage insurance vendors who have not followed CMHC’s lead and feel comfortable with their lending criteria. These alternatives mitigate the effects on CMHC’s policy change which was intended to lower their risk in the case of mortgage defaults, and to protect highly leveraged buyers from excessive damage as a result from a potential home price decrease.
The primary markets that CMHC views as overheated are Toronto and Vancouver, while Alberta has already seen price adjustments over the last five years. For this reason, we do not anticipate dramatic price decreases across the province to match that of other major metropolitan areas. As buyers come back into the market post-COVID-19, the June sales activity has already increased noticeably, and inventory has begun to move.
The best way to determine if now is the right time to buy, or sell, and to learn the best strategies to use, is by contacting us for a no-obligation consultation today.
Has your garage turned into a junk drawer of sorts, filled with everything from holiday decorations to sporting equipment? If clutter has taken over your garage, it’s time to get organized, reclaim that space, and return your vehicle to its long lost home.
1. Remove all the contents
Clear the driveway and start bringing everything out. Sort items into piles of trash, donate and keep. If you know you will have a lot of junk, you need to think about how you will dispose of it in advance.
2. Create Zones
Once you’ve determined what you are keeping, sort like things together and decide where those things will be stored in your garage. Some zones may include gardening tools, sports, camping, holiday decor, car stuff, and anything else specific to your needs.
3. Make a Storage Plan
Storage solutions are essential when organizing your garage. You will want some items out of sight, while others may be visible. Proper shelving and airtight plastic bins will provide you with storage around the perimeter of your garage, while cabinets can hide extra pantry items or things that should be out of reach for children.
4. Utilize all the Space
Don’t forget to use the space above the garage door. A shelf in that location is perfect for holiday items that you only use once a year. Consider hanging bikes on hooks from the ceiling and tools on the wall to get them out of the walkway to the door.
5. Add Hooks Near the Doors
Whether you’re hanging a pet leash, backpacks, or a jacket, a few hooks by the door will always come in handy. Keep your frequently used items within reach.
