The Government of Canada has announced that the Stress Test is being revised to make qualifying for a mortgage a reality for more Canadians. Today we have to qualify clients at the benchmark rate of 5.19%, regardless of the client’s contract rate.


The changes will mean that instead of using 5.19% to qualify clients, I will be able to use a weekly median rate plus 2.00%. So let’s say the weekly median rate was set at 2.85% today, we would use 4.85% as the qualifying rate which is 34 basis points less than the old qualifying rate (5.19%). 34 basis points is a massive difference that will make the debt servicing ratios much more reasonable. Every other week I see situations where clients can debt service the real contract rate on a mortgage amount, but don’t pass the stress test at that same mortgage amount. In these scenarios we reduce the purchase price they would be approved for.


I will fill you in as more details come out. In the meantime, don’t hesitate to reach out with any questions.


 


It was announced today that the new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.

These changes will come into effect on April 6, 2020.

Also, change is likely for uninsured mortgages. The Office of the Superintendent of Financial Institutions is considering the same new benchmark rate to determine the minimum qualifying rate for uninsured mortgages, and is seeking input from interested stakeholders before March 17, 2020.

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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Saturday, February 22, 2020 2:00PM - 3:00PM SOUTHWEST CORNER UNIT W/2 INDOOR PARKING SPOTS Meticulous+bright 1225 SF unit w/nice view feat:9 ft ceilings,wrap around deck,2 bdrms,2 bth w/walk in showers,lots of xtra insuite storage,insuite laundry,2 INDOOR+HEATED PARKING STALLS.Quick poss avail.Lydia Penner 204-918-0346
OPEN HOUSE SATURDAY + SUNDAY February 22+23, 2-3 pm. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Sunday, February 23, 2020 2:00PM - 3:00PM SOUTH WEST CORNER UNIT W/2 INDOOR HEATED PARKING Meticulous+bright 1225 SF unit w/nice view feat:9 ft ceilings,wrap around deck,2 bdrms,2 bth w/walk in showers,lots of xtra insuite storage,insuite laundry,2 INDOOR+HEATED PARKING STALLS.Quick poss avail.Lydia Penner 204-918-0346
OPEN HOUSE SATURDAY + SUNDAY February 22+23, 2-3 pm. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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EARLY TRANSFER OF LAND ON NEW BUILDS

We have a high land transfer tax in Manitoba. It is so high that people will sometimes go to some effort and expense to avoid at least some of it. One method used by buyers of “new builds” is to transfer the lot at an earlier time in the building process, so they only pay land transfer tax on the value of the lot, not on the entire value of the lot with a new house on it. The idea is simple enough, the lawyer transfers the lot to the buyer just after the contract is signed so the land transfer tax is only payable on the lot value, instead of waiting until the house is built and then doing the transfer on the value of the lot and the house together. The difference can be $2,000.00- $7000.00 in land transfer tax depending on the value of the house and lot. Some, but not all, new build contracts take this into account and have a standard clause that allows this. Often the vendor (builder), or whomever owns the lot, will take a caveat out or have a land transfer back signed on file just in case the buyer does not complete the deal after the land transfer. This idea has some positives but it also does usually require that the buyer of the home has to make an earlier draw on their mortgage of course and then begin paying principal and interest right off the bat as opposed to waiting until the home is built (or until the first progress payment, if that is how they are doing it). Buyers will be tempted to do this because the land transfer tax is so distasteful, but to make a proper decision, they need to assess this choice against the cost of pulling out money early on their mortgage and beginning to pay interest as well as taking into account the opportunity cost of any cash they are putting into the early lot purchase. Have this talk with them before they make the decision.

Gord

**as always, every situation is different and laws can change, if you have doubts, call someone


Gord C. Steeves*

AVS Law LLP


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Getting a DIY Renovation Done On time and On Budget

Two of the biggest stressors for DIYers are projects that cost too much or take too long. Unfortunately, there’s no sure way to guarantee that one or the other (or both) won’t happen. But there is a lot you can do to minimize the probability. When budgeting, a big mistake DIYers make is not considering the little things. For example, you might budget for drywall panels but neglect to include the cost of nails, tape and plaster. It's easy to overlook these small items thinking they won't add up to much of an expense. But often they do. In fact, for many renovation projects, the little things account for up to 20% of the cost. Another expense that is often overlooked is taxes. When you find a bathtub you like for $399, be sure to budget for what you'll actually pay out-of-pocket. Also, don't forget possible delivery expenses. A budgeting tip many experts recommend is to price everything you need and then add 10%. That gives you a buffer. Regarding scheduling, consider whether or not you've done this type of project before. If you're laying hardwood floors for the first time, there's a learning curve. You'll likely take two or three times longer than you would if you were more experienced. Even if you have experience with the type of project you’re undertaking, it's human nature to underestimate how long it will take. So, if you feel confident you can install that sink in an hour, give yourself two. A lot of this, of course, is common sense. But if you take a common sense — rather than an optimistic — approach to budgeting and scheduling, you'll stand a much better chance of your DIY project going smoothly. 

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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Saturday, February 1, 2020 2:00PM - 3:00PM Unit with 2 indoor heated parking spots Great South West facing corner unit of 1225 SF feat:2 bdrms,2 bth,wrap around 195 SF deck,luxury vinyl plank flrs+carpet,kitchen w/over the sink window,wide common area corridors,close to amenities+more. Lydia Penner 204-918-0346
OPEN HOUSE Sat Feb.1 + Sun Feb 2, 2-3 pm. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Sunday, February 2, 2020 2:00PM - 3:00PM Unit with 2 indoor heated parking spots. Great South West facing corner unit of 1225 SF feat:2 bdrms,2 bth,wrap around 195 SF deck,luxury vinyl plank flrs+carpet,kitchen w/over the sink window,wide common area corridors,close to amenities+more. Lydia Penner 204-918-0346
OPEN HOUSE Sat Feb.1 + Sun Feb 2, 2-3 pm. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 143 James Carleton DR in Winnipeg.
Open House on Sunday, January 19, 2020 1:30PM - 2:30PM DOUBLE GARAGE+SECURE CARPORT W/OVERHEAD DOOR 3 bdrm house feat:hrdwd flrs,granite counter tops;ensuite bath,2 extra rms,3 bthrm,Upgr:HE furn,hot water tank, shingles,windows,A/C.Dble 21x23 ft insul garage+Single carport w/an overhead door+opener. Lydia Penner 204-918-0346
OPEN HOUSE SUNDAY, JAN.19, 1:30-2:30 PM. This well maintained 3 bedroom house feat: formal dining rm + living rm, ELECTRIC fireplace, hardwood and ceramic floors, 11x12 ft eat-in kitchen w/granite counter tops; 2 piece ensuite bath in 12x12 ft mstr bedroom, well laid out mostly fin. basement feat rec/rm + play area, 2 rooms for office, 4 piece bathroom and lots of storage. Upgrades include HE furnace, hot water tank, shingles, windows, C/A, remodelled bathrooms. Double 21x23 ft detached insulated garage. There is a wood stove in this garage for a potential man cave. Single carport w/an overhead door + garage door opener. Don`t wait to call and check out this property. This one won`t last.
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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Sunday, January 19, 2020 3:00PM - 4:00PM 2 BDRM UNIT W/2 INDOOR PARKING SPOTS South West facing corner unit of 1225 SF feat:2 bdrms,2 bths,open concept,9 ft ceilings,open balcony,2 indoor heated parking stalls,insuite laundry+lots of storage.Exercise rm.Close to many amenities. Lydia Penner 204-918-0346
OPEN HOUSE SUN, JAN 19, 3-4. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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I have listed a new property at 208 276 Murray AVE in Winnipeg.
Showings start Jan 9. OPEN HOUSE Sat+SUN JAN 11+12, 2-4. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Saturday, January 11, 2020 2:00PM - 4:00PM CEDAR GROVE CONDO W/2 INDOOR HEATED PARKING SPOTS South West facing corner unit w/nice view feat:1225 SF,open concept,9 ft ceilings,2 bdrms,2 bthrms w/walk-in shower,in-suite laundry,A/C,balcony,handi-access,exercise rm,visitor parking,quick poss avail. Lydia Penner 204-918-0346
Showings start Jan 9. OPEN HOUSE Sat+SUN JAN 11+12, 2-4. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 208 276 Murray AVE in Winnipeg.
Open House on Sunday, January 12, 2020 2:00PM - 4:00PM CORNER SOUTH WEST FACING UNIT,CEDAR GROVE CONDO South West facing corner unit feat:beaut.view,1225 SF,open concept,9 ft ceilings,2 bdrms,2 bthrms w/walk-in shower,in-suite laundry,A/C,balcony,handi-access,exercise rm,visitor parking,quick poss avail. Lydia Penner 204-918-0346
Showings start Jan 9. OPEN HOUSE Sat+SUN JAN 11+12, 2-4. Offers will be reviewed as they are received. Units like this one seldom come available! Great South West facing corner unit of 1225 SF feat: open concept 9 ft ceilings,wrap around 195 SF deck, luxury vinyl plank flooring in living rm, kitchen + hallway, carpet floors in bedrooms, stainless steal sink in laundry room, kitchen with over the sink window and beautiful cupboards with soft closures, pan + pot drawers; 8 ft wide common area corridors, TWO INDOOR+HEATED PARKING STALLS and so much more! All this conveniently located close to many amenities. SF as per city assessment. Parking underground.
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Please visit our Open House at 143 James Carleton DR in Winnipeg.
Open House on Saturday, December 7, 2019 2:00PM - 4:00PM 3 bedroom house with 3 car covered parking Well maint 3+bedroom house feat:2+1/2 bath(bsmt bath has a tub),hardwood floors,granite countertops.Upgrds:furnace,shingles,hotwater tank,A/C; double,insul garagae w/wood stove+car port w/overhead door.Lydia Penner 204-918-0346.
Showings start Dec 4.OPEN HOUSE asat. dec 7, 2-4. OPEN FOR OFFERS DEC. 10, after 3 PM. This well maintained 3 bedroom house feat: formal dining rm + living rm, gas fireplace, hardwood floors, 11x12 ft eat-in kitchen w/granite counter tops; 2 piece ensuite bath in 12x12 ft mstr bedroom, well laid out mostly fin. basement feat rec/rm + play area, 2 rooms for office, 4 piece bathroom and lots of storage. Upgrades include HE furnace, hot water tank, shingles, windows, C/A, remodelled bathrooms. Double 21x23 ft detached insulated garage with 100 Amp elect box. There is a wood stove in this garage for a potential man cave. Single carport w/an overhead door + garage door opener. Don`t wait to call and check out this property. This one won`t last.
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I have listed a new property at 143 James Carleton DR in Winnipeg.
Showings start Dec 4.OPEN HOUSE asat. dec 7, 2-4. OPEN FOR OFFERS DEC. 10, after 3 PM. This well maintained 3 bedroom house feat: formal dining rm + living rm, gas fireplace, hardwood floors, 11x12 ft eat-in kitchen w/granite counter tops; 2 piece ensuite bath in 12x12 ft mstr bedroom, well laid out mostly fin. basement feat rec/rm + play area, 2 rooms for office, 4 piece bathroom and lots of storage. Upgrades include HE furnace, hot water tank, shingles, windows, C/A, remodelled bathrooms. Double 21x23 ft detached insulated garage with 100 Amp elect box. There is a wood stove in this garage for a potential man cave. Single carport w/an overhead door + garage door opener. Don`t wait to call and check out this property. This one won`t last.
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I have sold a property at 620 Bardal BAY in Winnipeg.
Showings start Sept 25, Open House SUNDAY Sept 29, 2-4 pm. Open for offers Oct. 1, 8:30 pm. Cute + clean starter home. Well maintained by longtime 2nd owner. This house feat: updated windows + shingles; hardwood FL under carpets, living/dining RM combo; open rec-rm w/wet bar, kitchenette in laundry rm, extra rm w/window in bsmt; nice fenced back yard, close to schools + community club. On a nice quiet street. Some meas. -/+ jogs. Some furniture can be included.
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Please visit our Open House at 620 Bardal BAY in Winnipeg.
OPEN HOUSE: SUNDAY, SEPT 29, 2-4 PM
Showings start Sept 25, Open House SUNDAY Sept 29, 2-4 pm. Open for offers Oct. 1, 8:30 pm. Cute + clean starter home. Well maintained by longtime 2nd owner. This house feat: updated windows + shingles; hardwood FL under carpets, living/dining RM combo; open rec-rm w/wet bar, kitchenette in laundry rm, extra rm w/window in bsmt; nice fenced back yard, close to schools + community club. On a nice quiet street. Some meas. -/+ jogs. Some furniture can be included.
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