New Mortgage Rules for January 2018

People have been asking me about the mortgage changes coming January 2018. Basically means the bank will qualify you for less,  about $100,000 to $175,000 less  based on your income. This will probably start MID DECEMBER. Now is the time to purchase or sell, if you're concerned

My update on the 2017 Real Estate Market

Mortgages / Real Estate Changes and Outlook for the future real estate market

We have had a very heated real estate market over the last couple of years. We have been seeing year over year increases of over 20% in most areas and across most market types.   The government has been introducing a number of different measures to curtail the rapid increase.  As many of you were aware there were some changes, introduced by the government, that took affect October 17^th. .The number one of these changes was the way buyers with less than 20% would qualify for their mortgage at the current posted rate compared to the discounted rate. The way it works is that, years ago when you wanted a mortgage you would have to negotiate from the rate on the window (posted rate) or now the web site to a discounted rate, the bank depending on the business you were bringing to them would decide how much they would negotiate. Lately most banks offer you the discounted rate right from the start and you would qualify at the rate that they offered you. As of October 17^th, if you are putting down less than 20%, you will still get a discounted rate but will have to qualify at the posted rate. What that means is most people will now qualify for over $100,000 less on what they could have purchased before. There were some other changes, but they will not have as much affect. 

Since then we are seeing banks increasing and decreasing mortgage rates, discounts and even prime rates, as TD did recently. Which means rates are all over the map. This is also further fueled by some restrictions on some non-chartered banks, coming into effect on November 30^th, which will limit some of the choices people have on purchases over a million, investments properties and more.

As of November 15^th, government also stated that they would be increase the land transfer tax rebate that was being offered to first time buyer from $2000 to $4000 as of January 1, 2017.

I recently came back from a conference in which one of the most important and respected major bank Chief Financial Officer spoke and explained what he believed was the forecast for the upcoming real estate market.  First of he agreed with the move that the government was doing in, basically making it much more difficult for people with less than 20% to purchase a home or at least the same valued home that they were able to purchase before October 17^th.  He stated that if there ever was a change in interest rates or other market changes, these people would be able to absorb it now that they had to qualify at a higher interest rate. He mentioned that it seemed that the new outlook for the government was that it was ok to rent and that not everyone had to own their own home. He stated that interest rates would not be going up or changing much, since most other developed countries around the world had interest rates still lower than us.  Since our economy was not doing as well as the government would like, we might even see further drops. Then in regards to foreign investors, he stated that this would also continue because other countries might devalue their currencies further to stimulate their manufacturing sector, thus causing funds to flow out, into a secure and profitable area – Canada.

As you can see there are lots of changes that are happening, and it looks like things will stay steady and we will continue with a fairly strong real estate market.

Banks Drop Prime Rate

Banks started dropping their prime rate, great for variable rate mortgages and lines of credits attached to the prime rate.

Oshawa Real Estate Still Booming

Multiple offers and over asking sales, look  like will be the norm in Oshawa. There seems to be a huge pent up demand, waiting for what ever comes on the market. This will only get stronger as we get closer to the Spring Real Estate market. Most markets are very active but the Oshawa Market seems to be standing out. 

Durham Region Hot Hot Hot

Multiple offers & fast sales continue throughout Durham Region #AjaxRealEstate #WhitbyRealEstate #PickeringRealEstate #OshawaRealEstate. Trying to book homes to show today and a least 1/2 are already sold conditionally. Wow. This is when I tell my clients that they have to prepare ahead of time for what is coming, it does not mean everyone pays more than what a property is worth, it just means that you now need to be much more informed and prepared. Now there are many more things to consider ahead of time, such as:  offer conditions (length and removal) , price, deposits, appraisals, closing dates (costs involved for changing), fixtures, and much more when it comes to the actual negotiating. But no worries this is when a professional and experience Realtor will shine.

Hottest Real Estate Market in Toronto and GTA is Agincourt

The Hottest overall area so far this year for houses is AGINCOURT IN SCARBOROUGH at 21.84%, year over year price increase since last year.

Durham Region real estate sales statistics year over year

Durham Statistics: Durham Region has had a price increase from last year of 8.66% compared to City of Toronto of 7.58%.
Inside Durham:
Pickering     8.12%
Ajax            9.28%
Whitby         8.28%
Oshawa        8.35%
Clarington     10.78%

Durham Region Price increase since last year

Price increase for Durham Region, since last year:
Durham Region: 7.95%
Pickering: 6.57%
Ajax: 10.53%
Whitby: 6.29%
Oshawa: 8.13%
Clarington: 6.46%
Uxbridge: 10.69%

Price increases in Toronto since last year

Price increase since last year:
Toronto: 7.72%
Leaside: 16.84%
Agincourt: 13.05%
Junction: 13.37%
Some parts of Toronto are as low as 1.7% since last year, so area is everything, and I don't mean the high demand areas.

Hottest Real Estate Areas for August

Hottest areas for the month of August are: Leaside in Toronto, Followed by Georgina and Clarington outside Toronto. Hottest Region was Durham Region with average increase from last year of 5.88%.

Buy a house that feels right for you.

When I first started as a REALTOR in 1994, I would always advise clients to get the most for the money. The biggest, most upgraded or best area for the MONEY. As TIME went on and I saw different odd things happen and also seeing many cultures beliefs, I changed my tune. I now advise me clients, choose the home that FEELS RIGHT for you. 

144 Derrywood Drive, Vaughan L4K 5S4

Just listed on MLS, for only $609,900. This wonderful upgraded home is over 2200 sqft in one of Vaughan's most sought after areas, near Dufferin road and Rutherford Road. It features 4 large bedrooms, 9 foot cielings, all hardwood flooring, a finished basement and a main floor family room. This one won't last, open house Tuesday May 22 from 4pm to 7pm. visit www.theamigo.ca for virtual tour and more details.