What Toronto's New Mortgage Rules Mean To You?!

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

Week 5: Toronto Real Estate Market Update - Jan 2012 Statistics

Click for VIDEO: Toronto Real Estate Market Update

Jas Jagpal discussses in this video:

1.  Toronto Sales Numbers in January 2012 vs 2011
2.  New Listings in Toronto
3.  Average Price in Toronto in 2012
4.  Average Days on the Market in Toronto
5.  CMHC reacing its $600 Billion Dollar Limit
6.  Why banks are getting low ratio mortgages insured by CMHC?
7.  How these Mortgage changes will affect First-Time Buyers

Contact Jas Jagpal, To Buy, Sell, Invest, Assign or resell your house or condo.

Posted via email from Markham Homes for Sale : Markham Condos Real Estate : Investment Pre-Construction Condos

How Will CMHC Announcement Affect Buyers & Sellers?

Toronto Real Estate CMHC NEWS

WATCH VIDEO

You should be concerned or not?  Most Buyers have no reason to be after CMHC announcement.

CMHC will begin (if they already haven't) to tighten it's loan insurance approvals for perspective home buyers.

They are already nearing $550 Billion dollars of loans insured and who knows how fast they will reach their $600 Billion limit set by the Government and insured by Tax payers.

How will it affect you? Well, first time buyers, self-employed and those with less than 20% should be especially concerned if they were thinking of buying a home in the near future.

Banks should be taking some of the blame for even insuring loans where Buyers put down more than 20%.  This is an "accounting move" and banks "positioning" themselves to save their ass if anything happens in the market because the "tax payers" are liable to pay for it.

So if you were thinking of buying... you might have to come up with more soon 10% instead of 5% or be able to pay higher monthly premiums if amortization rules change to 25 years.

So make sure you pull your "credit scores", talk to your lender to see what you are approved for, have reasonable savings and you might want to consider buying now at these record low- interest rates.

These rules will impact SELLERS too and will tend to cool the market down and put downward pressure on pricing.  So Sell Today with my 30-60 Day Sold Guarantee!

Jas Jagpal, Broker
RE/MAX Dynasty Realty Inc

To Buy, Sell, Assign, Invest give Team Jagpal a call. 

 

Posted via email from Markham Homes for Sale : Markham Condos Real Estate : Investment Pre-Construction Condos