Alberta Mortgage Rate Update Feb 13th, 2019 (& More Downpayment)

Jillian Napen 13 Feb

Mortgage Rates for Grande Prairie & Northern Alberta

It’s Mortgage Rate Wednesday again! Here I update our best available rates, talk about our beautiful city of Grande Prairie and answer some common homeowner questions such as buying a second home.

” Do I need 20% down to buy a house if it’s my second house?”

Buying a second home? Can I need to put 20% downpayment on that second home?

Alberta Mortgage Rates for Feb 13, 2019.

Do I need 20% down to buy a house if it’s my second house?

How do you classify a second home? Here’s a couple of scenario’s.

Why are you buying a second house?  Which of these situations describes you best?

  • Buying a Second home after selling my first home?

Buying a home here in Grande Prairie after selling your first home? Then this is considered your new primary residence. We can do 5% down.

  • Buying a Second home for my children to live in while going to school in another city

All lenders will let you do 5% down on a family home. So if you want to purchase college condo or home for your kids, give us a call.

  • Buying a second home, and keeping my first home as a rental property

If you plan to live in this home, then 5% down.

  • This second home will be a rental property, I’m still living in my first home

As a rental property, you’ll have to put at least 20% down anywhere you purchase it in Canada.

 

Repeat those Alberta Mortgage Rates?

Here are this week’s best rates for February 13th, 2019:

  • 6 month at 3.30%
  • 1 year at 3.49%
  • 2 year at 3.54%
  • 3 year at 3.24%
  • 4 year at 3.64%
  • 5 year rate Special at 3.39%
  • 5 year variable rate mortgage at 2.95%    P- 1.0%
  • 7 year 3.64%
  • 10 year 3.89%

Give us a call today to get a mortgage started for your second home!

(780) 513-6611

Working hard to increase our website SEO in Grande Prairie

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie

Grande Prairie, Alberta Mortgage Rates Feb 6, 2019 and downpayment

Downpayment 6 Feb

 

Grande Prairie, Alberta Mortgage Rates Feb 6, 2019

 

Grande Prairie, Alberta Mortgage Rates for Feb 6, 2019

Here are this weeks mortgage rates for Grande Prairie, Alberta.

 

Everyone always has downpayment questions. How much do I need to put down on my first house? If I put more down do I get a lower rate?  Do I need to put a different amount down if it’s not my first house? What is the downpayment if it’s a rental home? So this week we post our Grande Prairie, Alberta Mortgage Rates and talk a bit about downpayment.

How much do I need to put down on my first house?

As long as it’s for your primary residence:

As of February 2019 in Alberta, current mortgage rules are that you only have to put 5% down on your first house, or your second or even 20th home. If you are buying a home that’s meant to be your residence you can do just 5% down. Given Grande Prairie’s Residential Average Home Price (September 2018) of  $320,744 that 5% would be $16,038.

You could get a lower rate in Grande Prairie with a higher downpayment

That doesn’t mean it’s always a good idea to just put 5% down. If you put 35% down here in Grande Prairie instead of 5%, many companies will give you their best rate. Putting 5% down gets you a home in Grande Prairie, but not always the best mortgage rate.

Put more than 5% down to avoid mortgage default insurance

If you can afford to put 20% down on a home in Grande Prairie, you can avoid having to pay for mortgage default insurance. Mortgage default insurance is mandated in law by the Canadian government. As of February 2019, it is required to have default insurance on your mortgage if you put less than 20% down. Given Grande Prairie’s Average Home Price of $320,744 when putting 5% down or $16,038 you will pay $12,188 when mortgage default insurance is added to your mortgage. Go here to calculate that mortgage default insurance for any scenario. You don’t have to pay it up front, but that mortgage default insurance does add up!

Your Credit Score can affect downpayment

Mortgage lenders will consider your credit score when you go to get a mortgage as well. If you have excellent credit then 5% down is no issue, but maybe your score has dropped below 670 when you pull your credit report. What if your credit score is only 620? A lower credit score may mean that you have to put more than the standard 5% down here in Grande Prairie to make mortgage lenders comfortable issuing a mortgage.

This house won’t be my primary residence

How much downpayment do I need to purchase a rental home in Grande Prairie, Alberta? You will need to have a downpayment of a least 20% ready to purchase a rental home. Let’s take our average home price of $320,744 for Grande Prairie in September 2018 again that is $64,149 as downpayment. Given your credit score, the number of rentals you already own, or the condition of the home you are purchasing you may be required to put down much more than 20%. One good point, putting at least 20% down you avoid mortgage default insurance.

 

There are many situations that can change what amount of Downpayment is required here in Grande Prairie Alberta. For clarification, or just to have a professional run the numbers call our office here in Downtown Grande Prairie at 780-513-6611.

Or go here to fill out a form with questions.

Jillian Napen, Office Manager at HT Mortgage Group, Part of Dominion Lending Centres in Grande Prairie

 

 

 

 

Winter is here! Get a worry free mortgage!

General 16 Jan

This time of year, there are a few less mortgage’s being done- not many people want to move into a new home in the snow. But if you want to get a worry free mortgage done in Grande Prairie, this is a great time to be shopping.

Scope out those potential neighbourhoods – how many snow shovels?

  • Will my new neighbours shovel their driveways?
  • Are there any super nice people on the street willing to snow-blow my sidewalk?
  • Can I walk around safely?
  • Are they using salt, sand or kitty litter to de-ice the walk?
  • How far is this house located from a bus route or major traffic route that will get plowed first when we have a lot of snow?

My top tip? Scope out that neighbourhood right after it snows – compare early morning snow levels to slightly after work snow levels. In some neighbourhoods like Hillcrest here in Grande Prairie, you can drive around and count how many people have shovels ready near their front door.

And if you closely examine sidewalks, try looking right between two homes – this can tell you if two people shoveled at different times – or if that super nice multiple driveway shoveler exists in this neighbourhood! That’s what I call a worry free mortgage!

What? You need more than just good neighbours with shovel’s to have a worry free mortgage?

You want the best interest rate, or to confirm that you’ve got a mortgage that let’s you pay it off faster? Well a local mortgage broker will help with that.  Give us a call to get those details in place! But really guys – in 2018 Grande Prairie had 49 inches of snow in December and another 49 inches of snow in March – trust me – a worry free mortgage is all about the snow shovels.

Article by Jillian – Doesn’t own a snowblower – Napen

Office Manager , HT Mortgage Group

Or good neighbours who own a snowplow

Snow shovels are the key to a worry free mortgage in Grande Prairie

Northern Alberta Tiny Home Finance

General 25 Jul

Tiny Homes  and getting them financed in Northern Alberta

Now I’m a big fan of the tiny home movement. I think that simple lifestyle, so minimalist is… very tempting. The only real problem is that there is a disturbing lack of tiny home developments up here in Northern Alberta!

Our House Magazine (which we give away free at our office in Downtown Grande Prairie) recently ran an article on a new tiny home development and charity in Calgary. “Tiny Homes for Heroes”

I’ve posted the article on another blog for today, but wouldn’t it be amazing if we could get a tiny homes community going here in Grande Prairie too!

The Challenge of Financing a tiny home

Financing a tiny home has some challenges. Here in Canada, most Tier A lenders (The big banks) want a single family home to be a minimum of a 1000 square feet, before lending. Lenders assume a smaller home is a cheaper, older home, with few upgrades.

So how are people getting tiny homes built if financing is so difficult?

Option 1 – Start a charity

Well, this is what our friends in Calgary did. Tiny homes, the 200-300 square feet version’s are fairly cheap to build. Fundraising enough money to build several little homes in a community format work’s well, and a normally sized plot for one home can support several tiny homes. This option is hard for most of us dreaming minimalist though. I want to live in a tiny house…. not just help build them!

Option 2 – Buy Raw Land and Start your own tiny home community

Most city’s have these pesky things called bylaws. They tell us the minimum size our house should be, what the proper ceiling height is, and how large windows need to be for fire code. For our safety, or so that all of the homes look nice and uniform… these bylaws make it difficult to find a place to build your tiny house!

Some developers and tiny home enthusiast’s have gotten around this by declaring their plot of land mobile home parks. If a tiny home is built on a trailer, different bylaws apply that are more favourable to a small home. Why build just one tiny home, when you can build a community?

Option 3 -The Easiest Financing Method

Grande Prairie’s rental market has less than 1% Vacancies right now. (July 2018)  A carriage house is a garage with living quarters, and that is something we can finance or refinance into your existing mortgage. So maybe you just design a garage that can be easily converted into a tiny home!

The downside is your sharing your lot, but you get to live in a tiny home, and have rental income! Later on, if you find the tiny home lifestyle isn’t as grand as you thought, you can always move back into the main house. Or move your kids into the tiny home.

Option 4 – Lobby our city hall representatives to make zoning exceptions for tiny homes

One day maybe! Now Calgary and Vancouver each have several bylaws designed to allow tiny homes in various communities throughout these two cities!

In the meantime, give our office a call to discuss options that may work for you!

Jillian Napen

Tiny Home Enthusiast, and Office Manager at Dominion Lending Centres
Ht Mortgage Group, 101 10001 100 ave Grande Prairie
July 25, 2018