The Federal Government takes steps to protect consumers from predatory lending practices.

“Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. “Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent lenders from facilitating it."

The Government will therefore adjust the rules for government-backed insured mortgages as follows, and are effective April 19, 2010:


- All borrowers must qualify at the 5 year rate even if they choose a mortage with a lower interest rate and shorter term.

- Lower the maximum lending on equity limit to 90% of the appraised value of your home on refinancing, from 95%


- 20% down is now needed for government-backed CMHC insured mortgages on investment properties that are not owner-occupied.

- Amortization period and down payment remain unchanged at 35 years max and 5% down

The result of these changes will be negligible as most lenders already have these policies in place, as a minimum.

Total housing starts up for a second consecutive month

Total housing starts up for a second consecutive month Calgary, November 9, 2009 – According to preliminary figures released today by Canada Mortgage and Housing Corporation (CMHC), total housing starts in the Calgary Census Metropolitan Area (CMA) totalled 732 units in October 2009, up from 599 units in the previous year.

To the end of October, total housing starts declined from 10,460 units in 2008 to 4,829 in 2009. Single-detached builders started work on 502 homes in October 2009, an increase of 38 per cent from the 365 units started in 2008. This represents the fourth consecutive month of year-over-year increases in single starts. “Builders continued to increase starts in response to declining inventory levels and higher new home sales,” said Richard Cho, CMHC’s Senior Market Analyst for Calgary. “The recent up-tick in construction activity is expected to continue in the months ahead,” noted Cho.

To the end of October, there have been 3,612 single-detached units started, down four per cent from the previous year. “Although new construction is down year-to-date, the recent rise in activity is bringing production closer to 2008 levels,” he added. In October, there were 230 multi-family units that broke ground, down two per cent from a year earlier. “The year-over-year decline in multi-family starts, which consists of semi-detached, row and apartment units, is less pronounced since we are no longer comparing to the elevated construction levels earlier in 2008,” said Cho. After the first 10 months of the year, there have been 1,217 multi-family units started, down 82 per cent from 2008. “Multi-family construction is expected to remain low in the coming months as builders, especially those in the apartment segment, are still facing heightened inventory levels,” he noted.

Provincially, housing starts in Alberta’s seven largest centres totalled 2,179 units in October, up 30 per cent from October 2008. For census agglomeration areas, Medicine Hat and Red Deer reported a year-over-year increase in total housing starts. As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

Housing starts decline in Calgary

Calgary, March 9, 2009 – Total housing starts in the Calgary Census Metropolitan Area (CMA) declined from 877 units in February 2008 to 206 units in February 2009, according to preliminary figures released today by Canada Mortgage and Housing Corporation (CMHC).

After two months, total housing starts have reached 449 units, lower by 1,139 units as compared to year-to-date production in 2008. Multi-family starts, which include semi-detached, row, and apartment starts amounted to 22 units in February 2009 compared to 589 units started in February 2008. “Multi-family starts are forecasted to be lower this year as compared to last year,” said Lai Sing Louie, CMHC’s Senior Market Analyst. “A lower level of demand and rising inventory levels has prompted developers to rapidly adjust new construction activity.

It will likely take until 2010 before we see higher year-over year activity,” he added. Year-to-date February, there have been a total of 61 multi-family starts, down almost 94 per cent from the same period in 2008.

Meanwhile, there were 184 single-detached starts in February 2009, down 36 per cent from the 288 units started in February 2008. This year’s two month total of 388 single-detached starts is down by about 40 per cent as compared to the same period last year. “Once the inventory of completed and unabsorbed units declines to manageable levels, we expect to see the housing market expand again in 2010,” added Louie.

Housing starts across Alberta’s seven largest centres totalled 574 units in February compared to 1,867 units a year earlier. Lower levels of activity were reported across six of Alberta’s seven largest centres. Grande Prairie reported an increase in year-over-year activity.

As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country. For more information, visit www.cmhc.ca or call 1-800-668-2642.

Finance Options for Investment Properties

CMHC announced their Rental Property program in January, however the Insurance Premium is fairly pricey! At 95% to 100% loan to value the premium would be 7.25% for a 25 year amortization. 40 year amortizations are available however the premium would increase by .60%


This program is available with Purchase or Purchase with improvements for up to 4 units. Clients have to have a strong credit history. It is available under Corporate names with personal guarantees. Income must be verified.

Best current rate on 5 year term is 5.74% and Variable is Prime - .60%.