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November 17, 2016

Automatic Partial Mortgage Loan Insurancefor BUILT GREEN® Homes

All homes certified through Built Green Canada are automatically eligible for a partial mortgage loan insurance premium refund through both Genworth Canada and the Canada Mortgage & Housing Corporation (CMHC).

Both CMHC’s and Genworth’s partial mortgage loan insurance refund is a savings of 15% for those with a BUILT GREEN® certified home. To take advantage of this offer, please contact our office to obtain your Building Certificate of Authenticity from Built Green Canada. Note: for the first time, BUILT GREEN® certified homes in and of themselves are eligible for these rebates (i.e. rebates don’t hinge on the ERS score).

 

For more information and links to both offers: http://builtgreencanada.ca/mortgage-rebates

November 14, 2016


EDMONTON, November 14, 2016 – The Canadian Home Builders’ Association – Edmonton Region (CHBA-ER) is pleased to introduce Colin Wiebe as their 45th President. Colin succeeds Steve Ruggiero, President of Kimberley Homes Group. 

Colin Wiebe has been an integral member of the CHBA-ER over the past 5 years.  A law school graduate from the University of Kent in Canterbury, he serves on both the Edmonton Region and Alberta CHBA boards, including most recently as the Vice President, Edmonton Region.

As a member of the All Weather Windows ownership group, Colin has advanced through the company in a variety of operational and leadership positions during his 16 years with the company. Launched in 1978 by a group of Edmonton entrepreneurs, All Weather Windows has 9 branches across Canada, is a member of the CHBA on a national level and a member of 18 other local home builder’s associations nationwide.

“Our Association is about to face the most stringent year of regulation in modern time, not only in Edmonton, not only in Alberta, but nationally. The question becomes what will we do in 2017 to address this? Advocacy is a key strategic imperative for 2017. This will be one of our major goals to leverage the relationships that we re-built over the past 4 years to achieve results for our industry, association, and ultimately, our members.” said the newly elected CHBA-ER President at the recent Association annual general meeting. 

Looking ahead, Colin said collaboration has and will continue to be key within the industry when facing a number of challenges in the coming year. 

Established in 1954, The Canadian Home Builders' Association - Edmonton Region (CHBA - ER) is a not-for-profit organization representing 525 member companies, including new home builders, renovators, land developers, trades, manufacturers, suppliers, financial institutions and a host of allied professionals. 

For more information please contact:

Sharon Copithorne
Chief Executive Officer
(780) 425-1020 ext 223  
Scopithorne@chbaedmonton.ca 

October 19, 2016

CHBA’s position is that the recent tightening of mortgage insurance rules announced by Minister Morneau on October 3rd go too far, and will adversely impact markets that are already challenged, and first-time homebuyers working hard to achieve home ownership.  In both cases, according to many commentators, this has the potential to increase risks to market stability and further dampen economic recovery. 

Continue Reading. 

 

October 11, 2016

On October 3, federal Finance Minister Bill Morneau announced a series of proposed changes to federal policies and legislation affecting mortgage loan insurance, mortgage lending rules, and tax treatment of capital gains from principal residences for foreign buyers:  

  • standardizing mortgage insurance eligibility criteria for high- and low-ratio insured mortgages, including a mortgage rate stress test;
  • closing loopholes surrounding the capital gains tax exemption on the sale of a principal residence; and,
  • consulting on the distribution of risk in the housing finance system.

CHBA advocates that the prime objective of federal housing policy should be to support stability and predictability in Canada’s housing markets and housing finance system. CHBA has undertaken analysis of the mortgage rate stress test and is very concerned about the impacts resultant reduced access to mortgages will have on potential first-time home buyers. CHBA is also concerned about the impacts these rules will have on slower markets.

Continue reading

 

October 06, 2016

From:    Kevin Lee, CEO
               CHBA National 


On Monday, October 3, federal Finance Minister Bill Morneau announced a series of proposed changes to federal policies and legislation affecting mortgage loan insurance, mortgage lending rules, and tax treatment of capital gains from principal residences for foreign buyers.  As details on the mortgage insurance and lending rules continue to emerge and there has been time to assess them, CHBA is very concerned about the impacts on potential homebuyers, particularly first-time homebuyers, and in turn on our industry and the economy.

 

Of particular concern is the “stress test” whereby all insured homebuyers must qualify for a mortgage at the Bank of Canada’s conventional five-year fixed posted rate, which is significantly higher than actual rates.  This will dramatically reduce the mortgage amounts available to buyers, locking out many first-time buyers trying to buy entry-level units, and potentially disqualifying buyers who have already qualified but not yet secured their mortgage. Conventional mortgages will also be affected by new portfolio insurance rules, and this will further impact the market, although the extent of these impacts remains unclear (CHBA is  vigorously pursuing more definitive information from the Finance Department).  CHBA commissioned a study on the impacts of the measures that estimates that one-third to one-quarter of first-time buyers could be removed from the market, and that the measures overall will reduce housing activity by 6 to 10 percent.  This is obviously a serious concern.

 

Accordingly, CHBA has contacted the following in Federal Government leadership to raise our issues and serious concerns, and will follow up accordingly:

·         Minister of Finance (Morneau)

·         Parliamentary Secretary to the Minister of Finance (Champagne)

·         Minster responsible for housing and CMHC (Duclos)

·         President and CEO of CMHC (Siddall)

·         Chair of the Parlimentary Finance Committee (Easter)

 

We have been asked if members should contact local MPs: yes, they should certainly feel free to do so to express their concerns.  Hearing directly from constituents about concerns of this nature can be very effective in helping MPs convey the magnitude of concern around this type of measure.  

 

CHBA has also engaged several other national organizations with interest in preserving the dream of homeownership for Canadians (like the Canadian Real Estate Association, Genworth, Canada Guaranty, and Mortgage Professionals Canada) about collaborating to address this issue and others emerging around homeownership.

October 03, 2016

From:    Kevin Lee, CEO
 
Today, federal Finance Minister Bill Morneau announced a series of proposed changes to federal policies and legislation affecting mortgage loan insurance, mortgage lending rules, and tax treatment of capital gains from principal residences for foreign buyers.  We don’t expect that these measures are likely to have a significant impact on traditional homebuyers, including first-time buyers. 

While details of these measures are still emerging, they appear to be fairly consistent with CHBA’s advocacy on protecting first-time buyers from undue mortgage restrictions; supporting CRA’s efforts to ensure that buyers are playing fairly and receiving equal tax treatment; and not introducing a tax on new construction or macro-prudential action that has a broad effect across the country. 

CHBA advocates that the prime objective of federal housing policy should be to support stability and predictability in Canada’s housing markets and housing finance system. Federal officials seem to be committed to multi-level, intergovernmental action as CHBA advocates.

Details of proposed changes to federal policies and legislation affecting mortgage loan insurance, mortgage lending rules, and tax treatment of capital gains from principal residences are as follows:

·         Proposed changes to the Income Tax Act will clarify that an individual who was not resident in Canada in the year the individual acquired a residence will not—on a disposition of the property after October 2, 2016—be able to claim the exemption for that year. This measure ensures that permanent non-residents are not eligible for the exemption on any part of a gain from the disposition of a residence.  Trusts will be eligible to designate a property as a principal residence for a tax year that begins after 2016 only if additional eligibility criteria are met.

·         The Canada Revenue Agency (CRA) will require a taxpayer to report the disposition of a property for which the principal residence exemption is claimed.  The CRA will have the authority to assess taxpayers beyond the normal assessment limitation period for a tax year in cases where the disposition is not reported in the taxpayer’s tax return.

·         Effective October 17, 2016, all insured homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada’s conventional five-year fixed posted rate. (This requirement is already in place for high-ratio insured mortgages with variable interest rates or fixed interest rates with terms less than five years.)  To qualify for mortgage insurance, a homebuyer must have a GDS ratio no greater than 39 per cent and a TDS ratio no greater than 44 per cent.
NOTE: There is some uncertainty in terms of the details and the extent of the impact for this measure and CHBA has accordingly commissioned a more detailed assessment of it.

·         Effective November 30, 2016, mortgage loans that lenders insure using portfolio insurance and other discretionary low loan-to-value ratio mortgage insurance must meet the eligibility criteria that previously only applied to high-ratio insured mortgages.

Associated with these impending changes, the Minister also announced public consultations this fall “to seek information and feedback on how modifying the distribution of risk in the housing finance framework by introducing a modest level of lender risk sharing for government-backed insured mortgages that could enhance the current system”. 

In addition, the CRA will continue to work with provincial partners to seek ways to further improve information collected on real estate transactions, and to ensure the effective sharing of this information with tax authorities.

Kevin Lee, P.ENG.,M.ARCH.               
CEO

http://www.chba.ca

 

 

August 08, 2016

9.36 Energy Efficiency for Small Buildings

  • CHBA – Alberta developed and delivered a presentation on coming changes for energy efficiency for part 9 buildings.  It steps through the different paths that can be used to demonstrate compliance and provides examples of how to arrive at assembly RSI values. Click to view the presentation
July 29, 2016