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Buying New Houses for Sale in Edmonton: Mortgage Broker Vs. Bank

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When getting a mortgage for new houses for sale in Edmonton, it can be tricky to decide whether to go with a mortgage broker or a bank. Knowing the difference between the two in your home-buying journey is essential. Both options present several pros and cons that could help you make a smarter choice that saves you time and money. In Canada, it is common to use a bank to secure a mortgage due to its established presence and reputation. However, it is not unusual for homebuyers to outsource a mortgage broker. In this article, I will help you better understand the differences between mortgage brokers and banks when it comes to applying for a mortgage. Follow along below to learn more. 

All About Mortgage Brokers

Mortgage brokers are often referred to when it comes time to make a home purchase decision. But, what is a mortgage broker and how are they different from a bank? According to ratehub, mortgage brokers are licensed mortgage specialists with access to multiple lenders and mortgage rates. They act as an intermediary between you (the buyer) and the lender. A mortgage broker’s commission is ultimately paid by the lender who provides the mortgage. Mortgage brokers represent 43% of all mortgage originations in Canada according to the 2023 CMHC Mortgage Consumer Survey. 

Mortgage brokers, like banks, will put together a mortgage application. Some examples of mortgage brokers in Canada include: CanWise Financial, Dominion Lending, Safebridge Financial and The Mortgage Centre. One of the greatest perks to working with a mortgage broker is that they essentially do the “shopping around” on your behalf. They also negotiate for you, and present you with the lowest rate that you qualify for given the market conditions. Any sort of discount that the mortgage broker gets can be passed on to you, which can be of great benefit.

Despite these benefits, there are also some downsides to working with a mortgage broker. For example, they often charge fees that are incorporated into your contract. While using a mortgage broker may appear “free” for creditworthy borrowers, it’s important to be cautious of these potential costs. Another possible risk of using a mortgage broker is the variability in service quality. Not all brokers have the experience and knowledge to secure the best deal for you. Therefore, it’s crucial to find someone trustworthy with a positive reputation. Additionally, if you are purchasing a home for the first time, you might find it advantageous to acquire a mortgage through a bank with which you have an existing relationship.

Using a Bank to Secure a Mortgage for New Houses for Sale in Edmonton

A more common route to securing a mortgage in Canada is through a bank. According to the 2023 CMHC Mortgage Consumer Survey, banks accounted for 57% of mortgage originations. This number has gone down in recent years, due to the growing popularity of mortgage brokers. When you acquire a mortgage from a bank, it usually means that you go through a chartered banking institution that offers personal banking, credit, loan and mortgage services. There is no middleman involved when you receive your mortgage from a bank. This is because the bank acts as a lender. 

When you apply for a mortgage at a bank, they will put together an application for you. Some examples of Canadian banks that you can receive a mortgage from include TD, RBC, BMO, CIBC, Scotiabank and Tangerine. Unlike a mortgage broker, banks can only offer their mortgage products. This can leave you somewhat limited in terms of options. It also requires that you shop around and compare lending rates on your own. As a first-time buyer, this can be somewhat daunting. What’s more, is that even though banks offer discounts on their posted mortgage rates, it is up to you to negotiate to receive them at a cheaper cost. 

Acquiring a mortgage through a bank offers the perk of consolidating your financial services with a provider you already know and trust. This familiarity can simplify your banking experience by allowing you to manage multiple financial products, such as savings, investments, and insurance, under one roof. By leveraging an existing relationship, you may also benefit from streamlined communication and potentially better integration of services tailored to your financial goals. This consolidation can enhance convenience and efficiency in managing your finances.

Contact me Today!

Understanding the difference between mortgage brokers and banks is important as you look towards achieving your real estate goals. Contact me today to learn more about new houses for sale in Edmonton. I’d be happy to answer any questions you have about how to achieve your 2024 real estate goals. Feel free to reach out to me at any time! Be sure to check back next month for more real estate-related information. I look forward to working with you in the near future. 

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How do Canadians Feel About Buying Edmonton Real Estate for Sale?

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Since interest rates began to climb in 2022, Alberta cities have remained relatively affordable compared to national averages. As such, many Canadian homebuyers have looked to this province to find an inexpensive place to live. However, with such a great number of buyers relocating to Alberta, prices in major cities like Edmonton and Calgary have been forced in the upward direction. Consequently, this causes Alberta residents to be a bit more cautious before pulling the trigger on purchasing a home. To give you a better idea of the market for Edmonton real estate for sale, I put together this market update. Here, you’ll find the latest trends and best places to buy real estate in the city. Follow along below to learn more. 

BMO Survey Reveals Hesitance in Canadian Homebuyers

At the end of April, BMO released its BMO Real Financial Progress Index. This survey is designed to indicate how consumers feel about their personal finances and whether they are making financial progress. The inaugural release of this survey was in 2021 to help Canadians navigate the uncertainty of the pandemic. Now, it serves as a way for Canadians to check in and see how they’re coping with current economic challenges. For example, inflation and rising interest rates. The index reveals insights into spending behaviours, financial confidence, and areas causing financial anxiety. Thus, offering a comprehensive view of Canadians’ financial well-being. 

In the most recent release of this index, BMO found that 72% of aspiring homeowners are still waiting for interest rates to drop off before buying a home. This value is up 4% year-over-year, indicating rising concerns for affordability and financial stability. Within this report, 58% of people noted that they were worried about the cost of living. Another 56% said that inflation was a major concern, and 38% said they were uncertain about their overall financial situation. For buyers who are set on waiting until interest rates come down, there is a possibility that the Bank of Canada could make cuts this month or the month following (July). 

What’s interesting is that among all of the financial concerns, 85% of Canadians still believe that they are making real financial progress. Furthermore, 67% went as far as to say that they are confident in their financial situation. Despite this, housing costs remain the top source of anxiety for Canadians, with 74% of people highlighting this in the report. The main factors contributing to this anxiety include a shift in the Canadian dream, pent-up demand, refinancing troubles, climate considerations, and the cost of homeownership itself. 

What Does This Mean for Buyers and Sellers of Edmonton Real Estate for Sale?

For buyers, these statistics highlight several key trends in the real estate market. First, there is limited demand for homes until interest rates decrease. This is because many buyers are hesitant to enter the market given such high borrowing costs. Buyers who do not wait for rates to drop will benefit from reduced competition, giving them more time to conduct due diligence and explore their options. Less buyer-to-buyer competition means decreased pressure to make a quick decision—something that is common in a crowded market. If you’re ready to act now, work with a REALTOR® to leverage the current market conditions. 

Another trend that is becoming more prevalent across Canada is the redefinition of the Canadian dream. While many Canadians aspire to one day purchase a home, this goal is becoming increasingly hard to achieve. As such, Gen Z and Millennials are being forced to look at alternative paths to homeownership. Over half of people in these generations are aspiring homeowners, but most believe that this goal won’t be achieved until 2025 or later. Gen Z and Millenials are the most likely to expect to receive or plan to ask for financial help from their parents/grandparents. Other homebuying strategies include rent-to-own agreements, co-owning with someone other than immediate family, or renting out a portion of the house. 

On the other side of the market, sellers will need a strong marketing strategy to sell their property until local buyer activity resurfaces. Working with a trusted REALTOR® is a great way to ensure that your home sells in the toughest market conditions. Despite many buyers still waiting on the sidelines, there remain several out-of-town buyers who are actively seeking homes in Edmonton. Appealing to this demographic may be sellers’ ticket to success in the current climate. 

Contact me Today!

Paying attention to market trends and statistics is critical for those looking to buy or sell real estate this summer. Contact me today to learn more about Edmonton real estate for sale. I’d be happy to answer any questions you have about how to achieve your 2024 real estate goals. Feel free to reach out to me at any time! Be sure to check back next month for more real estate-related information. I look forward to working with you in the near future. 

Real Estate Sherwood Park New Bremner Hydrogen Powered Community

Real Estate Sherwood Park: New Bremner Hydrogen Powered Community

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Those living in real estate Sherwood Park should know that a new development is coming soon to their neighbourhood. However, this development isn’t your average suburb – it will be a community purely powered by hydrogen. This development is called Bremner, and it is set to begin construction right away. Bremner will mark the first hydrogen-powered community in Canada. This innovative approach to energy use aims to reduce carbon emissions and pave the way for more sustainable living options in the future. Residents of Bremner can look forward to a cleaner, greener community that sets a new standard for environmentally friendly living. In this article, we will be going over everything that you need to know about the new Bremner community. Follow along below to learn more!

Some Background on the Bremner Project

The Bremner project was approved by the Strathcona County Council in 2023. This came after a series of rezoning approvals and subsequent rejections. However, the project was ultimately given the go-ahead. Strathcona County had long been considering Bremner as a potential location for development. Despite this, there was minimal interest until a decade ago when talk of population increases spurred a need for new accommodations.

Qualico and ATCO are the two main proponents behind Bremner. For those who don’t know, Qualico is a housing development company operating in Western Canada and the US. They work on home-building projects, land acquisition, commercial and community development, and property management. On the other hand, ATCO is a premier corporation in Canada engaged in structure and logistics, electricity, pipelines and liquids and retail energy. Like Qualico, ATCO has various subsidiaries across the globe, stretching from Canada to Australia. 

In February of 2023, Alberta Innovates gave ATCO $2 million to conduct feasibility studies for the proposed Bremner project. ATCO Gas president, Jason Sharpe, noted that the study would examine what infrastructure is needed to get hydrogen into homes, what the regulations would be and how it would be priced for consumers. The feasibility study was aimed to provide recommendations to the government on how hydrogen-powered homes can be rolled out. This way, buyers can get a clear idea of what these houses will cost. 

While many Edmontoners have been supportive of the Bremner project, it has been a source of controversy from day one. Critics have mentioned the loss of good agricultural land, county infrastructure costs and premature timing. However, with Bremner being given the green light, this project has the potential to accelerate Canada’s development in hydrogen power. 

Details About Bremner Near Real Estate Sherwood Park

So what’s the big deal about Bremner anyway? And, what do ATCO and Qualico mean by a hydrogen-powered community? Well, Bremner will be the first hydrogen-powered community in Canada and the largest in the world. The only other hydrogen-powered community of any scale now is in the Netherlands. In Bremner, hydrogen power will be used exclusively for heating purposes. It will effectively replace natural gas with a much more environmentally friendly alternative. 

In an interview on April 18, 2024, Greg Caldwell (ATCO Gas) and Brad Armstrong (Qualico Communities) discussed some of the questions that Sherwood Park residents have been asking. One of these questions included the cost difference between hydrogen power and natural gas. This is an important topic given the state of interest rates and Canada’s current cost of living. Both Caldwell and Armstrong assured that there is little cost difference between natural gas and hydrogen power. Consequently, making the switch relatively unnoticeable from a financial perspective. 

By using hydrogen in place of natural gas, homes will not only be safer but also greener. With natural gas, there are various byproducts created when it is burned. For example, carbon emissions and greenhouse gasses. It also brings about the risk of carbon monoxide poisoning, which is responsible for 300 Canadian deaths per year. On the contrary, when burning hydrogen the only excess is water.

Bremner developers anticipate that the first resident will be able to move into the community by 2026. However, development will continue over the next 50 years, eventually resulting in over 37,000 homes, businesses and other amenities. Bremner is being constructed on 5,000 acres of land and is rumoured to house 85,000 residents upon completion. 

Contact us About Real Estate Sherwood Park

There are lots of new and exciting developments in the works in Edmonton and surrounding areas. Contact me today to learn more about real estate Sherwood Park. I’d be happy to answer any questions you have about how to achieve your 2024 real estate goals. Feel free to reach out to me at any time! Be sure to check back next month for more real estate-related information. I look forward to working with you in the near future. 

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A Buyer’s Guide to Sherwood Park Real Estate for Sale

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If you’re looking to capitalize on Edmonton’s real estate market and invest in a home, this guide is for you. Buying a home involves many nuances that both new and previously sidelined buyers should review. From understanding the risks of homeownership to making sure you’re financially ready, there’s a lot to consider. For those who are eager to purchase Sherwood Park real estate for sale, we will be going over everything you need to know about the steps to attaining homeownership in this neighbourhood.

Follow along below to learn more about buying in Sherwood Park, Edmonton. 

Taking Your First Steps

As you start on your journey to finding Sherwood Park real estate for sale, it is important that you begin by assessing your needs and wants. This is an essential step that can help you narrow your search and ensure that buying a home is the right decision. To do this, take some time to reflect upon your future plans. Do you see yourself moving in the next five years? Did you just accept a new job? Are you planning on starting a family or approaching retirement? Asking these questions is a critical first step. If you determine that buying is the most appropriate choice for your situation, you can then start considering more specific questions about purchasing a property. For instance, what size and type of home you want, how many bedrooms/bathrooms you need, and so on. 

The next step is to set your budget. Budgeting is likely the most important part of your buying journey. Finding a price range will dictate several factors. For example, what homes are in your price range, what kind of mortgage you will be looking for, and how much your down payment will be. To get a better idea of your budget, it is a good idea to speak with a mortgage advisor or financial planner. During this step, getting pre-approved for a mortgage of your choice is also a smart decision.

Another key step in the early stages of buying a home is hiring a local real estate agent. Partnering with a real estate agent who understands the local market can play a major role in the success of your purchase. An experienced agent will have great negotiating skills, an in-depth knowledge of the area you’re buying in, and several industry connections to help ease the process. 

What to Know About Buying Sherwood Park Real Estate for Sale?

For those who are interested in buying Sherwood Park real estate for sale, it is a good idea to get a sense of the neighbourhood before narrowing down your search. Sherwood Park, formerly called “The Park”, began in the mid-1950s as a satellite community for Refinery Row industrial employees. However, today, Sherwood Park is a highly sought-after community known for its safe and amenity-rich neighbourhoods. From recreational facilities to greenspaces, Sherwood Park is a desirable area that many Edmonton residents aspire to call home. Within the community exist several high-quality schools and nearby police/ambulance services. 

One of the newer developments in Sherwood Park is called Centre in the Park. This neighbourhood combines modern residential homes with retail services, public spaces, and municipal services. Furthermore, it integrates with older amenities in the community such as Broadmoor Lake Park, the Heritage Trail System, and Festival Place. There are also several businesses and schools connected within the area offering a complete sense of community. 

Another important aspect of Sherwood Park is its hamlet status. In Alberta, the term hamlet is used to define an urban centre governed by the municipality in which it is located. To grasp the significance of this classification, it is important to know that Sherwood Park is a part of Strathcona County. Strathcona County was incorporated in 1996 as a specialized municipality due to its combination of urban and rural areas. This means that the county can receive grants and other provincial benefits available to both rural and urban municipalities. 

Contact me Today!

Working towards buying Sherwood Park real estate for sale is an exciting process. Contact me today to learn more about the real estate market in this area. I’d be happy to answer any questions you have about how to achieve your 2024 real estate goals. Feel free to reach out to me at any time! Be sure to check back next month for more real estate-related information. I look forward to working with you. 

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Edmonton Luxury Real Estate is Forecasted to Boom in 2024

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Canada’s luxury real estate market remained relatively quiet throughout 2023. However, this year, experts are predicting that luxury homes will start to pick up the pace in terms of sales in the months to come. With interest rates at all-time highs last year, it’s no surprise that several Canadians put a pause on purchasing luxury assets. Now that interest rates are steadying, and rumours of decreases are circulating, eager buyers and investors are looking to make their move on high-end properties. Edmonton, Toronto, Montreal, Calgary, and Vancouver are among the cities looking promising for luxury property transactions in 2024. In this article, I will focus on the Edmonton luxury real estate market and provide some advice for those considering entering the market this spring. Follow along below to learn more!

The 411 on Edmonton Luxury Real Estate

During the bulk of 2023, luxury market sales struggled. Now that mortgage rates are stabilizing, Edmontonians who have been waiting for the right opportunity to purchase, are impatiently waiting to capitalize on the potential upswing in luxury property transactions. 

According to data from the REALTORS® Association Edmonton, the activity in this sector of the market was the lowest it’s been since 2020. This is in part due to the fact that many luxury property buyers were moving away from investing in condos. Rising fees associated with condos led to a perceived increase in value for single-family homes. Consequently, buyers found it more appealing to invest in detached houses than condominiums. 

Edmonton’s neighbour and rival to the south, Calgary, saw tremendous growth in its luxury sales during 2023. Homes with values over $1,000,000 saw sales increases of 13% year-over-year. All the while, properties valued at $4,000,000 and above witnessed a 50% jump in sales year-over-year. Not surprisingly, 88% of these purchases were single-family homes. Although, condo sales in Calgary also remained fairly steady, growing 16% year-over-over. It’s worth noting that the majority of the activity in this sector occurred during the latter half of the year. 

Similar to Calgary, Edmonton also recorded strong activity from the second half of the year onward in the luxury market. This is mainly due to the fact that the luxury market in Edmonton starts at $1,000,000. As a result, it is much easier for buyers to purchase high-end properties compared to cities like Vancouver or Toronto. 

The affordable price tag on luxury properties in Edmonton has been an attractive factor for out-of-province buyers and investors. For those used to the cost of housing in B.C. or Ontario, the value of real estate in Edmonton seems like a bargain. 

Tips for Investing in Luxury Properties

  1. Find Your Limit

When investing in luxury properties, it is critical that you know your limit in terms of price. Having a clear-cut budget is essential as you work towards marking a purchase. Luxury properties are often more expensive to maintain than your average single-family property. This is because many come with additional amenities and features that you wouldn’t normally have with homes in the regular market. Not to mention the average listing price will also be higher than usual. Getting pre-approved for a mortgage is a great first step to take. 

  1. Choose a Great Location

Location is paramount with luxury real estate. Especially, if you have plans of reselling or operating a business out of your home. You’ll want to ensure that your luxury property is zoned in accordance with your intended uses and in a place where future buyers would consider it to be an attractive investment. Choosing a home that’s near great shopping, dining, educational institutions, or a recreational experience is ideal. Talk with a real estate agent to determine what area is best for you!

  1. Work With a Trusted Agent

One of the best things you can do when investing in luxury real estate is to work with a REALTOR®. A trusted agent is going to know the ins and outs of the local market. This can ensure that you get the best deals, information and advice as you work toward accomplishing your goal. When buying a luxury property, it is often hard to determine a fair price. With the help of an agent, you can guarantee that you are getting the best value for your money. 

Contact me Today!

Choosing to invest in Edmonton luxury real estate is an exciting endeavour. Contact me today to learn more about the luxury market in this area. I’d be happy to answer any questions you have about how to achieve your 2024 real estate goals. Feel free to reach out to me at any time! Be sure to check back next month for more real estate-related information. I look forward to working with you in the near future.