Friday, July 17, 2015

A 20 year maximum amortization?

Now might be the ideal time to secure a mortgage.  Rates remain low for starters, but changes could be coming in other areas that could make it more difficult for some buyers to get a mortgage in the future.  There is some thought that the federal government could choose to cool off the housing market with changes to mortgage requirements.

According to The Financial Post Ottawa is using consultants to assist in deciding whether there should be new rules to cool down the hot real estate market in many areas of Canada.
Right now there is talk that an increased minimum down payment is being considered as well as other conditions for high-value housing. The Financial Post article suggests that tougher mortgage lending restrictions, such as a 20-year maximum amortization or tweaks to mortgage insurance, are also being considered.

The Department of Finance is saying little and currently denies considering changes to down payment requirements.  The Financial Post article reads, “They are definitely looking into this but it doesn’t mean that they will do it,” said one source close to the department, who asked not to be identified.

If you have a question about the real estate market or are considering to buy or sell in the future please contact me here.

Friday, July 10, 2015

The rise and fall of house prices.

Will house prices rise, stabilize or fall?   The results are in from a Bloomberg and Nanos weekly poll with Canadians and here's the overall reaction to that question. 

The thought of prices increasing is showing a growth in support.  Those who expect prices to stay the same is the strongest with 44.33 percent, but now 37.97 percent of respondents to the weekly poll think prices will rise.  That is up from 36.97 percent just a week earlier.  If you are a buyer hoping prices will fall, only 14.22 per cent of those surveyed think that will happen for you in the next six months.

If you or someone you know is thinking of buying or selling now or in the future, I would love to sit down and discuss the local market and answer any questions. Contact me here.