Edmonton Real Estate Blog - mortgages

A Look at Pre-Qualified and Pre-Approved Mortgages

Posted by Chris Proctor on January 23rd, 2011

In my experience helping numerous home buyers – especially first timers – knowing the difference between a pre-qualified mortgage and pre-appoved mortgage is a VERY important. Unfortunately, there is a lot of confusion surrounding the two (probably because they "seem" to be the same thing if you just go by what they're called). 

To help you avoid any unpleasant surprises or needless stress, let me explain the difference between the two in a simple and jargon-free way.

Pre-Qualified Mortgages 

A pre-qualified mortgage is a fairly simple process, and it can usually be done over the phone or over the Internet. You provide a lender (e.g. a bank or other financial-type institution) with a snapshot of your financial picture. This includes your income,…

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Government of Canada Announces Changes to Mortgage Rules

Posted by Chris Proctor on January 17th, 2011

On January 5th, I wrote about the Minister of Finance’s concern over Canadians’ household mortgage debt, and how some changes to borrowing rules were probably in the works. Those changes were clarified and confirmed this morning. 

Per the Department of Finance’s website, here are the changes to mortgage rules that people in Edmonton and across Canada will face in the coming year:

• Effective March 18, 2011, the maximum amortization period will be reduced from 35 years to 30 years for new government-backed insured mortgages that have a loan-to-value ratio of more than 80%. According to the government, this will reduce the overall interest payments that Canadians must make on their mortgage, which will free up more money to go towards principal.

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