Who needs more stress? Home Buyers! That’s who!
Yes folks, in order to save yourselves from yourselves, the government has decided that even UN insured mortgages need to be harder to get. So even if you are putting down 20% for your new home, you will now have to qualify for the posted bank rate PLUS an additional 2%!! Stress test time! This is, ostensibly, to protect you from rising rates that may occur during the term of your new mortgage and the gov’t wants to be sure that you KEEP your home when it comes time to renew your mortgage.
I wonder if this stress test will cause a surge in purchasing before the deadline of January 2018.
I also wonder how many FEWER buyers will qualify to get into Toronto’s housing market in 2018.
And, I wonder if, as a result, the supply will increase, demand will slow, thereby ensuring that the average price of a home will decline in Toronto. Affordability is a good thing…but a swift decline that is “forced” is not necessarily a good thing. As we all know, markets work much better than government intervention.
What do YOU think? I would love to hear your comments. If you have concerns about your future plans in Real Estate, just call. I know I can help.
Here is the link to more of the details: Forewarned is forearmed!! http://bit.ly/2yVMCHk
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.