Our House

38 OUR HOUSE WINTER 2018 DOMINION LENDING CENTRES ISTOCK TOOLBOX N o one wants to be told that they are not allowed to have something. We live in Canada; as Canadians, our focus has always been to strive for better and for more. That said, there appears to be a growing trend around the so-called sharing economy, which means people are increasingly moving away from owning their own cars, bikes, o‡ces and even homes. While this lifestyle is not for everyone, it speaks to an interesting trend about doing more with less. In Edmonton, we have the luxury of living in a city that o‰ers a‰ordable housing in every corner of the city. But while we have the benefit of local properties that give us more bang for our buck, times are changing. The federal government made some changes in 2016 that greatly a‰ected people's ability to qualify for a mortgage. Last October, more changes arrived which will make it even that much more di‡cult to qualify for a mortgage. New and existing homeowners are rushing in droves to secure five-year fixed mortgage rates ahead of future Bank of Canada rate hikes and further regulatory changes. The government is essentially continuing its stress-test for all uninsured mortgages (those with a down payment of more than 20 per cent), which will a‰ect a small percentage of new homeowners. For those looking to get into their first home, however, this might be a good oppor- tunity to look at the growing trend of doing more with less. Qualifying for a mortgage on a home worth more than $500,000 will likely be unattainable on a single or even double income. Looking at homes that o‰er more bang for your buck, including smaller starter homes, could get your real estate investment o‰ on the right foot. We've been able to enjoy low interest rates for many years now. Unfortunately, they are trending upward and will likely continue to increase. As such, your $500,000 mortgage in five years could actually cost you more in monthly payments–even as you pay down your principal. It is simply a reality that many cannot a‰ord the home they once could. This should be taken into account as you take the plunge into buying property. To discuss your mortgage rates, and to secure a low rate for 120 days, do not hesitate to call a Dominion Lending Centres mortgage specialist. We can also look at your current finances to better understand what price range of home you can a‰ord. MAX OMAR is an accredited mortgage professional with DLC Capital Region, based in Edmonton. EXPECTATIONS MANAGE YOUR Mortgage rule changes and higher interest rates are pushing some buyers out of the market. Consult your DLC mortgage specialist to find out where you stand By MAX OMAR

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