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Mortgage Broker News | 22 Feb 2016, 08:15 AM Agree 0
It’s no secret many Alberta housing markets have been hard-hit in the wake of falling oil prices, but claims that defaults are out of control are overblown, according to one local lender
  • RossK | 25 Feb 2016, 12:34 PM Agree 0
    The average value of a home in Alberta was $293,793 in January and not even close to what the public is being told by CREB, CREA and CMHC.

    When a market value appraisal is being completed in Alberta today they are over 12% lower than they were a year ago for the same home. Obviously since an Appraisal is legally required to be true you are simply getting far more home for your money in 2016 than you did in 2015.

    Strategic Defaults in my opinion, since the real estate community, banks and governments have all used faulty data to encourage the prices paid, are not only a legally viable option in Alberta for those with 80% LTVs or higher today but in all fairness it's the AB governments own fault this option is even available.

    To explain how absurd those "experts" referenced in this article statements are...Right now as of Feb 25th CREB is telling Calgarians that home prices have actually risen 2.57% so far this month.

    Now if you have want to buy some oil spill swamp land in Alberta...... Let the Con Game continue.
  • Kevin R | 28 Feb 2016, 02:46 PM Agree 0
    Unfortunately CBC didnt do their research very well either. They made out like people were walking away clean from properties leaving the Bank with the underwater mortgage similar to back in the 80's after Trudeau rolled out the NEP. I was the guy back in the 80's getting the keys mailed into. There is a big difference between then & today. First off, even with conventional mortgages, many lenders(monolines) Insure everything. So even if the borrowers didnt pay the premium, there is still covenant on these mortgages. So think twice about just walking away. Also, interest rates back then were between 14 & 18%. Look at what they are today. That tells you that even on the bottom end of the market, you dont need big Oil executive incomes to be able to afford a home & when this does turn around, real estate markets will rebound much quicker. Too bad MSM have to sensationalize everything.
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