It's been a couple of weeks since my last posting. It has been a busy time and there is so much happening in the Toronto real estate market and the world financial markets that many people are confused and anxious about their future.
The Federal government announced Mortgage Rule changes that will take affect July 9th.
What are the main changes?
1. Amortization period reduced from 30 years to 25 years
2. Refinancing credit from your home is reduced from 85% to 80%.
3. Homes over $1 million can't get CMHC insurance.
What does this mean?
1. If you put 5% down to buy a house or condo, for every $100,000 loan you will be paying roughly $50 extra per month. So on an average $400K home you are looking at an additional $200 a month.
Who is going to be impacted?
This will primarily impact first time home buyers whose budgets are already stretched and can only afford 5% down payments. Instead of buying a home at $400K, they might only be able to afford $350K and thus find that a great many homes are out of their reach.
What should you do?
If you are seriously considering buying. Talk to your mortgage adviser or myself today. You'll need to lock in a deal prior to these changes July 9th. We're expecting these changes to make the market hotter in the next month so it is a great time to SELL! Buyers need to act FAST!
I predict a huge rush to buy before the deadline and then a slowdown like we had during the GST/HST rule changes a couple years back.
Thinking of doing renovations?
If so you'll want to make an appointment with your financial institution right away if you need the 85% financing mark.
The last change affect CMHC not insuring homes over a million dollar shouldn't affect the market that much at all. If you are buying a million dollar house you ought to have 20% down payment... otherwise just your mortgage payments are ridiculously high. I expect some homes near 1 million might have a slight downward pressure to sell below a million dollars for buyers to get insured.
Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc. He has formed 2 teams. One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA. No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.
Choose Results, Honesty & integrity. Choose Team Jas Jagpal. E: jasjagpal@gmail.com O:905.471.0002
Jess Jagpal, Sales Representative jessjagpal@gmail.com 416.312.9742
So there you are folks the biggest news in real estate. Don't forget to check out new pre-construction projects at my Toronto Condo Real Estate website. Plenty of new projects coming up in Richmond Hill! XPRESSION is something you ought to consider.
Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale
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