Mortgage advisors have historically a built "Mortgage Plans" around every borrowers "personal stress test" rather than by how much a lender simply wants to lend the clients.


How much the lender will lend a borrower may not always be a reflection of what you as a client's budget can truly manage. It is very important to understand a borrowers personal financial ambition, expectations and goals first before determining the appropriate budget or cash flow that resonates with them and their families.


Now the federal mortgage regulators are chiming in as well and are setting a new minimum qualifying interest rate for uninsured mortgages. This effectively means that any mortgage at 80% of the properties value or less, will now be subject to a new stress test. This new federal requirement is a personal budget hedge in the event that mortgage rates were to rise by about 2%, which we personally feel is highly unlikely. (If they did increase that dramatically, we would have much bigger economic challenges...

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While it’s impossible to know for sure, experts analyze current trends to predict what may happen. The market should continue to moderate.


Home prices are expected to make very modest gains in 2018. Experts are predicting an increase of 1.2 percent, the smallest increase since 2009.1 Comparatively, home prices increased an average of 9.6 percent in 2016.1


The Canadian Real Estate Association (CREA) predicts the national average sales price will be $535,400.2 At the provincial level, both Ontario and British Columbia, which have seen impressive price gains over the last few years, will experience price increases around one percent in 2018.2


Alberta and Quebec will also experience modest price gains: prices in Alberta are expected to grow 0.6 percent and prices in Quebec are expected to increase 3.2%  in the same period.3

Nationally, experts predict home sales may fall throughout 2018.1


CREA adjusted its sales forecast due to slowing sales activity across the country. However, there...

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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.