RE/MAX Edmonton Real Estate News

News agencies across the country are reporting on new nationwide mortgage protocol to affect many real estate consumers. The federal government has implemented a larger minimum down payment for high valued homes in Canada.

Currently the Canada Mortgage and Housing Corporation (CMHC) requires a down payment of 5% in order to qualify for their insurance protection. This CMHC is support is not required in all circumstances, but crucial for lenders to see when a mortgage value is worth upwards of 80% of the home’s value. As reported by the CBC:

“Banks are forbidden to provide “high-ratio” mortgages — when the amount being borrowed is more than 80 per cent of the home’s purchase price — without taking out insurance for it.”

The new CMHC prerequisite, handed down from the federal government, will require a new minimum down payment of 10% on homes worth over $500,000. However the additional cost will only apply to the amount that exceeds that total.

This means that buyers will still pay only 5% on the first $500,000, and then any excess amount above that will require the 10% down payment. The CBC report explains:

“Once the new rules are implemented in 2016, someone looking to buy a $750,000 home would need to have a minimum down payment of $50,000, which is what you get when you add five per cent of $500,000 and 10 per cent of the remaining $250,000.”

Finance Minister Bill Morneau has explained that the from a financial standpoint the move is an effort to “create an environment that protects the people from buying homes so they have sufficient equity”. Bank of Montreal Capital Markets has unpacked the issue and seems to agree that the impact will be for the greater good, according to senior economist Robert Kavcic,

“Rather than a blunt instrument to cool the market, this is a targeted measure designed to deter a very small segment of buyers from stretching into the market with a very low equity position”.

What will the local impact be from these measures? The EREB has addressed this issue from a local standpoint and comes out optimistically. The average sale price in the Edmonton census metropolitan area falls well below the $500,000 price point, currently at $438, 172. REALTORS® Association of Edmonton affirmed this sentiment.

“We are pleased that the tiered approach should have little effect on first time home buyers looking to get into the market. However, we will continue to watch the Edmonton market to see what effects this national change has locally.”

In 2015 there were 2,721 residential properties that sold for over $500,000. The new measures are cited to take effect February 15, 2016.

Most people are too wrapped up this time of year preparing for Christmas to think about New Year’s Eve planning.  The hottest shows and clubs in town sell out fast and early so don’t be left scrambling for post-holiday plans. We’ve compiled a list of the best Edmonton has to offer on the biggest celebration night of the year, from the hottest parties to the best of family friendly events.

1. New Year’s Eve Downtown

An Edmonton Classic. Family activities are offered throughout Churchill Square and City Hall all evening. From face painting, crafts, magicians, and face painting, to ice skating, bannock making, and fireworks this is a kid-friendly, non-alcoholic event perfect for keeping the evening exciting but still low key. Indoor festivities begin at 7pm, outdoor entertainment begins at 9:15, and the firework show is at midnight.

*The city of Edmonton will be offer free public transportation on December 31, 2015 starting at 6pm until 2 a.m.

2. NYE with Kenny Shields and Streetheart

For those feeling a little bit rock ‘n roll this holiday season, Century Casino is hosting Canadian classic rockers Streeheart, featuring Kenny Sheilds. Doors at 8:30 and a show at 9:15 leaves plenty of time to keep the party going for the NYE countdown or to try your luck at the casino’s extensive table and VLT gaming room.

Tickets are $79.95 through the casino, dinner and show packages are available for an additional fee.

 3. Gatsby Gala at the Fairmont Hotel MacDonald. 

The upscale party goer will enjoy this formal affair at the classiest of all establishments, the Empire Ballroom of the Fairmont Hotel MacDonald. Dress in Gatsby inspired period wear, at this extravagant 5 course dinner and live big band dance gala. Program runs from 6pm to 1am, including cocktails, dinner service, entertainment, NYE midnight countdown, and bar service.

4. Back to the Countdown

Union Hall hosts a wild night of classic music videos, counting down to a midnight champagne toasts and double DJ’s to keep the party going. Dance the night away with DJ Grizz and DJ Tyco, while watching all your favourite video blasts from the past. Tickets start at $19.90 for general admission but there are multiple VIP options and prepaid bottle services packages for you and the whole crew.

5. Strathcona County Festival

Another great kid friendly event to celebrate the night with the whole family. From 4pm to 8pm you can enjoy free winter wonderland festivities and still be home for bedtime. Activities include crafts, a bonfire, face painting, public skating, and indoor snowboardinga at Broadmoor Lake Park, Community Centre, and Festival Place. Strathcona County transit plans to offer free park and ride services running during the event hours.

6. Latin New Years

For the 16th year running, the Delta Edmonton South is hosting a spicy night of dancing, drinks, and dining not to be missed. Voted Western Canada’s best Latin New Years, you can salsa along to  Giro Lopez and his band, supported by reggae artist Jmiel. Evening includes entertainment, a four course meal, and midnight countdown. Venue opens at 5:45, with dinner at 7:45. There are a variety of ticket pricing options to suit your party’s needs.

7. NYE Club Crawl

If you’re looking for a wild night out on the town, hop on the night’s most popular party bus to hit all the hottest clubs in town. This event was Club Zone’s 2015 fastest NYE sell out event. Crawl pass includes admission to 4 downtown night clubs, party bus access, no line-no cover privileges, official mardi gras bead necklaces. Check in is 6-7pm and then the party gets rolling. Passes start at $25.

8. Jazz New Year’s Eve

In addition to Latin New Year’s Eve, Delta Edmonton South is ALSO hosting Jazz NYE if that kind of thing is more your style. Get into the swing of 2016 with the Swing Kings featuring Sandro Dominelli & Shelley Jones. Dinner is included in your ticket package, as well as a view of the fireworks downtown. The evening begins at 5:30, attiring is formal.

9. St. Albert Fireworks

Victory Life Church of St. Albert is hosting an extravagent firework display by industry heavy hitters Thunder F/X Fireworks. The display begins at 8:30 sharp in Mission Park and family members of all ages are welcome to attend the free event.

Here is a video of a previous fireworks display

10. World Waterpark’s Family Beach Ball

Why freeze in outdoor downtown Edmonton when you can lounge on the balmy ‘beaches’ of West Edmonton Malls World Waterpark. Boasting an ambient 31 degree temperature, this may be your most relaxing NYE yet. Wave pool and slides will be open all evening, along with a spectacular indoor firework display. A family of four pass is $99 for the event and it runs from 6pm to midnight.