Benedict Devlin Real Estate Services

2019 FEDERAL BUDGET INCENTIVE: The 2019 federal budget included an incentive for prospective first-time homebuyers that would see the government contribute up to 10% of the purchase price of a home. Under the new First-Time Home Buyer Incentive, the Canada Mortgage and Housing Corporation (CMHC) would use up to $1.25 billion over three years to help lower mortgage costs for eligible Canadians....Continue reading

STARTING September 2: See below for details on the First Time Home Buyers Incentive Program.. 1. This program is for first time buyer, owner occupied, insured purchases only. ... 2. The program will be accepting applications after September 02, 2019 3. First possessions must be after November 01, 2019 4. Maximum household qualifying income is $120,000 per year. 5. Maximum first mortgage and buyer incentive is 4 times annual income, maximum mortgage $480,000. 6. The Government Incentive is protected by a Shared Equity Mortgage ( SEM ) registered in second position on title. 7. SEM is 5 % of the purchase price for existing homes and mobiles. 8. SEM is 10% of the purchase price for new construction homes. 9. The first mortgage must be more than 80% loan to value and insured by one of our three mortgage insurers. 10. No payments are required for the SEM. 11. SEM must be repaid upon sale or within 25 years. 12. SEM can be paid out early without penalty. 13. When the SEM is paid out the government is repaid 5% or 10% of the gross sale price or the deemed fair market value if paid out early. 14. Legal fees to register, or discharge or appraisals are to the cost of the homebuyer. 15. Minimum 5 % down payment is still required or sliding scale if purchase price is above $500,000. 16. Only a traditional down payment source is accepted. 17. Applicants will be approved by the mortgage insurers. Benefits: Home buyer’s immediate monthly ownership costs are reduced by the Principal and Interest on the SEM amount. (say a couple hundred dollars). Concerns: The Home buyer has the Government as an equity partner with a second mortgage registered on title. Creates possible issues down the road for refinancing, getting a Line of Credit, buying out a spouse, selling to a family member, arguing with the government about what your house is worth. Using this program, home buyers qualify for a slightly smaller purchase price than if they do not use it. If the home buyer puts money into home improvements prior to repaying the SEM, the increase in value from the improvements, when they sell or refinance, is shared with the government. Because repayment is based upon gross sale price, they will be paying a 5 or 10% tax on their home improvements expenditures. The government has been conducting training sessions for industry members and providing additional information. We are happy to share this if you are interested. Contact me for more information. See more

Qualifying Rate Reduced to 5.19% The Bank of Canada Benchmark Qualifying Rate, the so-called "Stress Test Rate" used to qualify mortgage borrowers has been reduced to 5.19% from 5.34%. This is the first change since May 2018. The stress test rate has nothing to do with a borrower’s actual contract rate, but it has everything to do with the size of the mortgage the borrower may acquire. The impact of this reduction means borrows will now qualify for approximately 1.4% larger m...ortgage. Borrowers will now have $1,400 more buying power for every $100,000 of purchase price, based upon their income. Actual five year-fixed term rates have declined the first six months of 2019, now below 3% again. The five year fixed are now below the 5 year variable rates. Overnight Rate The Bank of Canada left the rate setting overnight rate unchanged last week. This rate impacts variable rates, loans, prime rates, and Home Equity Lines of Credit. Although the Bank of Canada is to operate independent of the government, it is hard to imagine this rate increasing prior to the fall election. Likely the rate will remain flat for the rest of the year. Some economists are predicting the next move will be a % reduction. Equity Participation Mortgage More news seeping out regarding the government proposed Equity Participation Mortgage. For existing house purchases, 5% will be offered, for new house purchases, 10% of the purchase price will be available. Insured mortgage restrictions will apply. We still have not seen details on the mechanics of the approval process, funds disbursement, mortgage terms, restrictive covenants, or all the what happens if; for example a spousal breakup without a sale. The program is slated to begin September 1, 2019, so we should see details soon.

If you have any questions about any of these, DM us. Getting financing in Alberta is becoming harder, these tips will help you appreciate how precarious it can be if you’re shopping at the high end of your limit.

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Super starter home, fresh upgrades and renovations, 3 floors of living space, and all so affordable.

The Bank of Canada’s overnight lending rate will end the year exactly where it startedunchanged at 1.75%. As was widely expected, the Bank of Canada decided once again to leave rates on hold as it continues to assess the need for monetary policy easing given a strong domestic economy against a background of global headwinds. The BoC’s Governing Council noted that the Canadian economy continues to perform well, with growth in the third quarter of 1.3%, moderately expanding co...Continue reading

The perfect family home! It is located in Clive. 35 minutes to Red Deer and 15 minutes to Lacombe. This home sits on two beautifully treed lots. Lots of extra... space. The yard is fully landscaped with multi level decks and a fenced backyard. There is a double detached garage for all your projects and vehicles. The house has been updated and very well cared for. The kitchen has plenty of storage and counter space with a great dining room to entertain all your guests. Master bathroom with large ensuite. Basement has a fabulous walk out with three spacious rooms downstairs and a a great Family Room. The family room has built in cabinets for your convenience. Come see what this home has to offer. Priced at $317,500 MLS CA0180668 See more

No better time to find your dream acreage. This 1642' hillside Bungalow is surrounded by nature and privacy and an English garden on nearly 5 acres close to Hwy 2A.

Soaring ceiling and layers of windows engulf the centre of this 2-Storey family home with brightness. Located in desirable Westlake.