Canadian Market News – November 2016
You may have heard that some of the Canadian mortgage rules and
regulations have been changed recently. Naturally, these changes have
raised many questions among both buyers and sellers and at Canadian
Mortgage Authority Inc., we are here to help you figure out the answers.
As a Grimsby mortgage broker, Mark Buller believes the
best solutions come from being well informed. While the new rules were
designed with the national market in mind, they will certainly affect
local markets as well.
By staying up to date with the
changes that are being made in the local real estate market, Mark can
better assist his clients to find the perfect Grimsby mortgage or home
financing for their situation.
The new measures for
assessing and approving mortgages went into effect on the 17th of
October this year. Included in the new measures is the addition of a
"stress test” for high-ratio mortgage, and the termination of certain
tax exemptions for non-Canadians who were previously taking advantage of
these "loopholes” when buying and selling Canadian properties.
"stress test” was designed to help determine whether home buyers, would
still be able to afford their mortgage payments, including interest,
should interest rates rise in the future. These tests will now be
mandatory for all high-ratio mortgages, meaning any mortgage where the
buyer makes a down payment of 20 per cent or less.
changes will affect many potential home buyers, and could potentially
prevent some interested home buyers from being approved for certain
mortgages. These changes could also potentially affect pre-approvals, if
you have not taken any further steps. It is important for you to seek
advice from a mortgage broker in Grimsby if you plan to move forward.
full effect of these new rules might not be seen until the beginning of
next year, but the long-term effect will be positive for home buyers.
Eventually these new measures could reverse the market from the current
seller’s market to a buyer’s, just with more restrictions. Canadian
housing markets that were previously overpriced will most likely begin
seeing drops in prices as soon as next spring.
end, the smartest thing you can do is make sure you remain informed.
Canadian Mortgage Authority Inc. is here to help you through this
adjustment period and to answer any questions you may have. Contact Mark
Buller today for assistance finding the best mortgage for you.