Real Estate News Recap:
What an interesting year in Real Estate! During the first quarter, the Market was “On Fire” with Buying Frenzy, then the Market cooled down after the Government’s Foreign Buyers’ Tax Announcement mid-April, and then gradually the Market warmed up and has steadily become, and remains today, a more balanced Market.
We may see another Home Buying push before the stiffer Mortgage Guidelines are enforced mid-December and will take effect January 1st, 2018. Interest Rates remained Low and the Economy has remained Stable. Condos are more in Demand than any other type of Housing, and the Average Sale Price for a Toronto Detached Home was just shy of $1.3m in October. (TREB Stats)
Under the new rules, Buyers who have 20% Down Payment will still have to prove they can meet their commitment if interest rates rise above the five-year benchmark rate published by the Bank of Canada or 2 per cent higher than their contracted mortgage rate, whichever is higher. This may impact and disqualify one in five Potential Home Buyers. (Mortgage Professionals Canada)
First Time Buyers may have to get some PHD Money (Papa Has Dough) and be Gifted with money from Parents to qualify for uninsured Loans.
Household Annual Gross Income $100,000.00 with a Fixed 25-year Mortgage at 2.84% can afford a House worth $726,145.00
Example after the New Rules:
Household Annual Gross Income $100,000.00 with a Fixed 25-year Mortgage at 2.84% can afford a House worth $573,791.00
That’s a reduction of more than $150,000.00 (Calculated by Ratehub)
Thinking of Making a Move, Contact me today!