b'the right home in the new community. They also have regional, national and international marketing platforms to expand the sales exposure to worldwide buyers and narrow the search for the new home.KEY FACTORSWhen considering a mortgage for a new property, there are a number of considerations: bridging any financial gap between the two properties in an affordable manner, establishing the term for the mortgage if the transferee is in the new location for a specific length of time, and examining the portability options of the mortgage.For anyone purchasing a home in Canada, by far the most significant issue is the federal governments stress test, which determines eligibility for home mortgages. Implemented in 2018, it requires borrowers with down payments of less than 20 per cent of the property value to qualify at significantly higher interest rates than they are able to negotiate. The financial impact of this measure is estimated to be a loss of 15 to 20 per cent of a borrowers purchasing power. Borrowers who qualified for $500,000 under the old rules will only qualify for $400,000 to $420,000 under the new rules. Here too, says Heather Lake-Wellington, national manager at CIBC Group Mortgage Plan, seeking help from a mortgage expert with expertise in relocation is important, given that the mortgage component of a professional relocation has its own unique characteristics. To establish the best mortgage option for transferees you need assistance from people with experience in relocation, says Lake-Wellington. Access to a list of preferred suppliers in their new location, including mortgage brokers/banks, real estate brokers and appraisers, is essential. In a relocation, the home appraisal also differs from the usual appraisal. Employers require homes sold by transferees to be appraised both to establish a value for selling the home and to inform the employer of the potential value of the property. Appraisals for relocations are not conducted like standard home appraisals, explains Stephen Healey, owner of Knight & Company Appraisals. Standard appraisals determine a fair market value for properties. Relocation appraisals deter-mine the anticipated sale price of the home under the current market conditions. This involves forecasting ahead, typically 90 days, and making an adjustment to the anticipated sale price based on factors that include current housing market trends for the area, competition from similar homes on the market and recent comparable sales. Timing of the move is also a considerationrelocations are better planned for the spring and summer rather than the fall and winter, when the market is typically slower.Two appraisals are done for comparative purposes, and appraisers have to stay within the relocation guidelines prescribed by the employer. (CERC provides an industry appraisal form for relocations used as a standard across the country.) Transferees should understand the terms of the appraisal guidelines, the adjustments to the anticipated sale price and that the appraisal is one experts opinion of value within the local market at a specific point in time, notes Healey.The real estate transaction remains one of the most significant steps in the relocation process. The purchase of a home is often the largest purchase people make in their lifetime, and an individuals biggest asset. With smart planning and the skill of specialized experts, buying or selling a home can be accom-plished to the satisfaction of both the employer and employee.Spring 2020PERSPECTIVES25'