8 Mar

February 2018 Market Stats – TREB Market Watch

Real Estate News

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January was a slow start to the year but we’re already seeing a 4.2% increase in the average sale price as the market comes to terms with the recent changes in real estate and mortgage regulations. The slow start can partly be attributed to the more stringent B20 regulations for uninsured mortgages resulting in reduced purchasing power for buyers.

However, when comparing to February 2016, we find that the overall price in the Greater Toronto Area is up about 12% for all home types. This puts us in line with the TREB’s 30 year average of annual appreciation and indicates that we are entering a healthier market for both buyers and sellers.

We will probably not see the full effect of the B20 stress test on the real estate industry for several more months as more buyers and sellers come back onto the market.

Toronto, Ontario, Real Estate, February, 2018, Statistics

February 2018 market stats for the Greater Toronto Area sourced from TREB market watch.

 

2 Feb

January 2018 Market Stats – TREB Market Watch

Real Estate News

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Year-over-year inventory levels are up but this month’s housing stats shows that the Greater Toronto Area is entering a more balanced market.  Traditionally, a market shift towards a buyer’s market happens closer to 5-months of inventory.

Assuming your mortgage rate is 3.20%, the monthly payment would be about $2,851 based on a mortgage amount of $589,426 (20% down payment of the current average home price of $736,783)

January, 2018, TREB, Toronto, Ontario, Mortgage, Stats, Condo, Townhouse, Detached

January 2018 market stats for the Greater Toronto Area sourced from TREB market watch.

18 Oct

OSFI Mortgage Regulatory Changes (October 2017)

Mortgage News

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On October 17, 2017, OSFI (the Office of Superintendent of Financial Institutions) announced mortgage rule changes that will come into effect starting January 2018.

The first change involves using a new qualifying stress test to all uninsured mortgages. People that would be affected by this includes home buyers with more than 20% down payment and also existing home owners that are looking to refinance their homes. The new rules require these uninsured mortgages to qualify using the mortgage contract rate plus an additional 200bps (or 2%). This change applies to all terms and fixed or variable rates.

The second change requires lenders to adjust their LTV (Loan-to-Value) measurement and limits according to the risk. Mortgage lenders such as credit unions and private lenders would be exempt.

The third change is restrictions on lenders (except for credit unions and private lenders) to be prohibited from offering or arranging a bundled mortgage to avoid LTV limitations.

If you’re not sure how the upcoming mortgage lending changes may affect you, please feel free to contact me.

For more information, please see: Change of Space – October 18, 2017

17 Oct

Impact of Mortgage Rule Changes

Latest News

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The mortgage rule changes that were passed by the Ministry of Finance in October 2016 are still having their effect one year later. Higher qualification requirements and new bank capital requirements have split the industry into two segments – those who qualify for mortgage insurance and those who don’t. Mortgages that qualify for mortgage insurance Read more…