Spruce Grove Mortgage Broker: Krista Rumberg
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Mortgage Rules After The Federal Budget

The Federal Budget announced new mortgage rules that were not what we were hoping for.

The best part of the new rules allows Canadians to withdraw $35K from their RRSP which is an addition of $10K over the previous $25K. This is awesome for the first time home buyers program – but remember the RRSP’s still need to repaid over time or they become taxable income.

The second portion that was supposed to be relief is confusing to consumers and disappointing. CMHC will now allow a purchaser up to 10% funding for new homes and 5% for existing homes with a household income of up to $120K. A home buyer purchasing a $400,000 home with five per cent down and a five per cent CMHC shared equity mortgage (worth $20,000), would see their mortgage reduced from $380,000 to $360,000, lowering their monthly mortgage bill. Buyers may borrow no more than four times their annual household income. This additional $20K will have to be repaid to CMHC but terms have not yet be laid out. This new program is set to commence in the fall of 2019. In my opinion this does little in our local economy and encourages Canadians to take on more debt…which is not something we need.

We were hoping for a adjustment to the stress test or bringing back 30 year amortization…the silver lining is the feds mentioned that the stress test will continue to be reviewed and we may see changes at a later point in time. Lets keep our figures crossed.

Watch the video snippet of the announcements below:

 

 

Questions on your mortgage, or want to compare your mortgage to what is currently available? Please email me.

Mortgage Broker Spruce GroveMortgage Broker Spruce Grove

Money & Conflict Luncheon

Money MOrtgage

Krista is presenting at the Alternate Dispute Resolution Luncheon  Tuesday February 19th in Edmonton.

It should come as no surprise that money woes can be the cause of marital and family stress; unemployment or poor spending habits can exacerbate the situation. One can easily conclude that
this reality extends well beyond just the family unit.

The FOAJ & ADRIA are pleased to present two speakers this month that will offer their experience, insights and resources to better understand the money & conflict dynamic. What skills or resources might be available to you when assisting families though these difficult conversations or decisions?

 

Speakers

As a mortgage broker, Krista Lindstrom has focused her own practice on families facing separation and divorce, and walking her clients through the complexities of restructuring mortgages and finances to retain the marital home, often with the bets interest of their children in mind.Knowing that life isn’t always easy, particularly at the end of a relationship, Krista has dedicated herself to
helping people navigate all possible mortgage options when facing separation and divorce. Krista believes that Knowledge is Power, and will share her personal experiences in dealing with families in conflict. Attendees will gain insights into approaches, tools and resources that would be useful in their

 

Second presenter is Manraj Waraich, from the Credit Counselling Society, a non-profit service helping individuals and families find their best options to deal with their debt and get their finances back on track. Manraj will present Financial First aid for Mediation Professional, assisting us all to learn how financial stress impacts our clients, to recognize the signs of financial stress, and to know what strategies and resources might be available to assist them.

 

EDMONTON
Tuesday, February 19
11:30 AM to 1:00 PM
Buffet Royale West
17202 95 Ave NW
Money & Conflict
$25 for members & $35 non-members

 

Buy Your Ticket

Tips For Saving For A Downpayment

Saving For A Downpayment

Saving for a down payment is one of those things most of us have to/had to do in our lives. You have created your life and/or family and are looking to get into your first home. This tips will help you with saving some money for your down payment.

Determine how much you need to save

The current minimum needed for a down payment of a home less than $500,000 in Canada is 5% of the purchase price. For homes between $500,000 and $999,999 the minimum down payment is 5% on the first $500,000 and 10% for any of the amount over it. Finally if you purchase price is $1,000,000 or more, the minimum down payment is 20%.

You can try out my handy Mortgage Calculator to input some prices to determine what you think would be an affordable mortgage payment for you for a general idea of your price range in homes.

Set a timeline

Once you have a timeline and an amount from there you can do some simple math to determine how much you need to put away weekly/monthly to save. For example, if you are wanting to save $20,000 (5% of $400,000) and are hoping to do it in 3 years you would need to put away $555 a month or $256 bi-weekly.

Automate your savings

Now that you have the amount you want to save per month in mind, set up automatic transfers with you bank in to a savings account. If you have specific dates you receive your pay you can have them set up to take out that day or the next.

Extras add up

Receiving a bonus at work or a little extra money in your birthday card? Put this money into the savings and it will quickly add up. Just as the little things like eating out and cab rides add up to take funds out of your account, saving on these things will encourage growth in your bank account.

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