Alberta Mortgage Fees Going Up This Summer: Alberta Budget 2015
 

This summer, it’s going to cost more to get a mortgage in Alberta starting July 1, 2015.

People considering buying a house this summer should be aware of some changes to the fees associated with being a land owner, and with getting a mortgage. Last week, the Province of Alberta released its new budget containing pretty significant increases in fees for people like you who might be getting a Calgary mortgage or buying property.

Ex: $500,000 purchase and a mortgage of $400,000 currently costs approx. $290 for land titles and mortgage registration.

Effective July 1, 2015 that same registration will cost approx. $1,230.

A difference of $940.

Read More on this and other AB Budget fee hikes!

A few days ago we posted information about the Alberta Budget and the fact that fees are going up for people considering buying a house. The new fees come into play July 1, 2015.

Click Part 2-Calculate Your Calgary/Alberta Mortgage Fee Increase to see details.

If you plan to buy a home with less than 10% down and get CMHC insurance, you will pay approx. another $450 per $100,000 of mortgage.

Link in TOP post is broken... it is fixed here.

Read More on this and other AB Budget fee hikes!

REMINDER -- Mortgage Insurance Premium Rate Changes

Effective June 1, 2015 Mortgage Insurance premiums are increasing.

To be eligible for the current premium rates, all applications for mortgage insurance must be submitted to a lender prior to May 27 and May 28, 2015 (the “Cut-Off Time”). Any applications submitted after the Cut-Off Time will be subject to the new premium rates.

Questions and Answers

Purchase

1. What if a purchase and sale agreement is signed prior to June 1, 2015 and the mortgage application is submitted after the Cut-Off Time?

In this scenario, the new insurer premium rates would apply. Even though the purchase and sale agreement was signed before June 1, 2015, the mortgage insurance application was received after the Cut-Off Time, and therefore the new rates apply.

2. What if the borrower(s) have signed a purchase and sale agreement and require mortgage insurance, however, the closing date is after June 1, 2015, will the current premiums still apply?

As long as the application is received are submitted to the lender prior to the Cut-Off Time, the current premiums will still apply.

3. What if the borrower’s mortgage pre-approval from a lender is dated before June 1, 2015, will it still be eligible for the current premium rates if it doesn’t have a signed agreement of purchase until after the Cut-Off Time?

All applications for mortgage insurance must be submitted to the lender prior to Cut-Off Time with a binding purchase and sale agreement in place to be eligible for current premium rates. Pre-approvals which do not go firm prior to the Cut-Off Time will be re-underwritten at the new premium rates. This may effect loan amounts and/or approvals based on the higher premium amounts added to the debt service calculations.

Changes after the Cut-Off Time

4. If an application was submitted to the lender for mortgage insurance prior to the Cut-Off Time, and the application then gets resubmitted with changes or updates after the Cut-Off Time, will the application continue to be eligible for the current premiums?

As long as the original application was submitted to the lender prior to the Cut-Off Time, current premiums will still apply.