Wednesday, October 19, 2016

Mortgage rule changes - update from TD

Mortgage Qualification Rule change – what you need to know
You have likely heard that the Federal Government instituting changes to Canada’s mortgage rules to make it harder to qualify borrowers for insured mortgages.
How will this affect you? If you are putting 20% down or better, it will not affect at all. If however, you are going through CMHC or GEMICO insurance you must qualify at the 5 year government posted rate. This rate is currently 4.64%. This has not changed significantly for TD, we have always qualified customers at the TD 5 year posted rate. (Exception was with a 5 year fixed rate). Now all insured mortgages will be qualified at the Government posted 5 year rate.
We consider this an excellent move; since it falls in line with what TD has been putting into practice for years. It will help ensure that borrowers will continue to be able withstand the possible rate increases in future renewals.

Lilianne Eid
Mortgage Specialist, TD Canada Trust
Phone: 613-222-2852

Fax: 613-249-7119

Saturday, October 8, 2016

The Ottawa MARKET is RED HOT. -. Since JUNE 2016.

Ytd 2016 Ottawa real estate market has sold 12,623 homes, compared to 2015, which was 11,805.  This is an increase of 6.9%

2016 Condos sold. 2,288. As compared to 2,131 up 7.4%

2016 Residential sold 10,335 sold as compared to 2015. 9,674. Up 6.8%
Overall sales including land, multifamilies. Etc. 13,091. As compared to 12,208 up overall 7.2%. 

Sales overall are up 7% compared to 2015

Inventory is down about 17%. Less homes to sell 

15% of all residential homes selling are $500.000 to $749900.     That's an increase of 11%, there have been. 1,551 sales 

Uber luxury is up . $750,000 to $999,000 is up 17%, over 337 sales

$ 1,000,000 is up 14%. ‎ 122 sales

47% of all Ottawa homes sold are between $300,000 to $449,900 

Highest demand price point is $300,000 to $349,900 

Monday, October 3, 2016

new mortgage rules in Ottaw

The Federal Government has announced yet another important mortgage rule change in efforts to cool the housing market by implementing what they call a "stress test".

In other words qualifying for a mortgage just got a whole lot more difficult.

Effective October 17th all insured mortgages are required to QUALIFY for their mortgage using the current Bank Of Canada Benchmark rate of 4.64% compared to using the ACTUAL rate that currently ranges from 2.39% - 2.44%.

Anyone that is currently in the market to purchase a home or refinance a mortgage but have not yet made an offer or committed a live mortgage needs to RE-QUALIFY immediately. 


Let's put this new rule into perspective......

A couple with a $100,000 income, no debts and 5% down payment can currently qualify for about a $484,000 home purchase using the current 5 year fixed rate of 2.44%

That same couple having to qualify at the bench mark rate of 4.64% now qualifies for a $421,456 home.

That is $62,544 less buying power!

All in effect by Oct 17th