There has been a lot of speculation recently about the change in Government and how it will affect the mortgage industry. It is well known that they are debating tightening up rules for mortgage lending yet again, but they have not yet confirmed what the changes will be.
Perhaps the most discussed option is the higher minimum down payment. The proposed change would be a gradual system with the new minimum down payment increasing to 7% for a purchase purchase of $500k and then to 10% for home purchases of $700k and higher. They are very clearly targeting the larger centres (Vancouver and Toronto) where many have felt the prices have been overinflated for quite some time. They have already changed the minim down payment to 20% for homes valued over $1M.
So how does this affect you? The main concern is First Time Buyers. In my area of Northern BC, the average home is around $275k so I don't feel like it will directly affect too many First Time Buyers. If the larger housing markets start to "cool" too quickly, it is unclear the direct effect it will have on the smaller markets.
Any changes will have some sort of impact in all communities across Canada so it is definitely worth staying tuned in! Some are saying the changes could be released as early as January, 2016 which won't give new buyers much time to prepare.
For more information on this or for any mortgage questions at all, please feel free to contact me today.
www.christinebuemann.com
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