Sunday, January 5, 2014

Poly B Water Piping



What is this Poly B Water piping that gets so many home inspectors excited about in Calgary?

Ploy B Water Pipes
Ploy B Water Pipes

"Polybutylene is a form of plastic resin that was used extensively in the manufacture of water supply piping from 1978 until 1995. Due to the low cost of the material and ease of installation, polybutylene piping systems were viewed as "the pipe of the future" and were used as a substitute for traditional copper piping. It is most commonly found in the "Sun Belt" where residential construction was heavy through the 1980's and early-to-mid 90's, but it is also very common in the Mid Atlantic and Northwest Pacific states."

As a full time Real Estate Agent in Calgary I run into this style of piping quite often. Some people are very concerned and will not buy a home with poly b water pipes, while others have no concerns at all.

Two of my golf buddies (one a licensed plumber, the other a plumbing inspector for the City of Calgary) both say that the Calgary home inspectors raising alarm bells to home buyers over poly b water pipes need to become better informed home inspectors concerning this type of common water piping in Calgary homes. Ok well maybe they are a bit more blunt than that. Here is a link to a Fact Sheet from the Government of Alberta concerning Poly B - Poly B Fact Sheet - AB Gov

No matter what type of water pipes are in the property you are thinking of buying, if it is a concern, do your own Due Diligence as a prudent buyer should do. Get the facts, weigh the facts and make a decision on the facts and ignore those crying wolf who have no facts on Poly B water piping in Calgary Homes.

Start your Due Diligence with the 2,700,000 results you get with a google search for poly b water piping as a start.



Saturday, December 21, 2013

How Much Does CMHC Mortgage Loan Lender Insurance Cost You? 

The first thing you must know about CMHC insurance is that it for the benefit of the bank not you. It should be renamed CMHC Mortgage Lender Insurance - I repeat it is not for your benefit - it only helps the bank if you do not or cannot pay the mortgage. You do pay the fee for the bank to have the benefit though. 

Bank and other lenders pay the insurance fee and pass the cost on to you.
It will be added to your mortgage.

CMHC Mortgage Loan Insurance Fees are calculated as a percentage of the loan and is based on the size of your down payment.

The less you put in as a down payment - the higher the fee that gets added to your mortgage.

Down Payment Premium on Total Loan Premium on Increase to Loan Amount for Portability and Refinance
Standard Premium Self-Employed without 3rd Party Income Validation Standard Premium Self-Employed without 3rd Party Income Validation**
35% 0.50% 0.80% 0.50% 1.50%
25% 0.65% 1.00% 2.25% 2.60%
20% 1.00% 1.64% 2.75% 3.85%
15% 1.75% 2.90% 3.50%* 5.50%*
10% 2.00% 4.75% 4.25%* 7.00%*
5% 2.75% N/A 4.25%* *
90.01% to 95% —
Non-Traditional Down Payment***
2.90% N/A * N/A
Extended Amortization Surcharges
Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period (for Loan To Value ≤ 80%).

For portability and refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. In the case of portability, a premium credit may be available under certain conditions.

* Premiums shown with an “*” do not apply for refinance. For portability the maximum LTV ratio is 90%, but CMHC may consider higher LTV ratios when the new ratio is equal to or less than the original LTV. For portability, the premium is higher for non-traditional down payments on Increase to Loan Amount.

** For conversion from Self-Employed with traditional 3rd party income validation to Self Employed without traditional 3rd party income validation, the premium is the lesser of: a) the Premium on Total Loan Amount or; b) the outstanding balance multiplied by a 1.5% premium plus the Premium on Increase to Loan Amount.

*** Down Payment Requirements — Traditional sources of down payment include:
Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of min. required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative.
Non-traditional sources of down payment include:
Any source that is arm’s length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts, 100% sweat equity, lender cash back incentives.


Talk to a Calgary Mortgage Professional for more information


Calgary Average Rents Doubled in 20 Years

In 20 years the average rents in Calgary have doubled. In the same time period the cost of an average single family detached home in Calgary has gone from $127,000 to $481,000. These are just two things we could compare the cost of over a 20 year period. Oil was $19 a barrel and gold was $344 an ounce in 1992. Those prices have more than doubled. The more things we add to the list of prices then compared to now - rent still looks like a bargain - Take the average detached home in Calgary today.... where else can you get the keys to an asset worth a half a million dollars for a couple of grand on average a month.

Where do you think these prices will be 20 years from now?

Calgary 2 Bedroom Rental Rates - Graph

Find Homes For Sale in Calgary AB

Wednesday, December 11, 2013

Find Homes For Sale In Calgary


This is a short youtube video showing you some of the ways you can find Real Estate in Calgary that is currently available to purchase on www.jerrycharlton.com

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