Many potential buyers and sellers may be holding back on either purchasing or selling their homes at the moment. Actually, the best time to buy or sell is right now before the new mortgage rules come into effect on Jan 1, 2018.
Sellers:
As a seller if you have a home to sell you still have time for our Winch Walton Ottawa Real Estate and Staging Team to stage, list and sell your home before the Jan 1 deadline. Buyers for your home after January 1 will have to go through more stringent rules and would lessen their buying power to get a mortgage. Previously the rules only applied to those purchasers who had less than 20% as a down payment. With the new rules everyone will have to undergo the stress test.
The Canada Mortgage and Housing Canada premiums will remain the same whether you apply for a mortgage now or after January 1st. The new rules introduced last week will affect anyone that is now putting more than 20% down and applying for a mortgage after January 1st. The “stress test” last year affected anyone putting less than 20%, so now everyone will be have to abide by the same rules.
Buyers:
With the new rules, it will be harder for first time buyers to buy their first home. But if a new buyer can purchase a home before the Jan 1 deadline and have 20% or more to put on their new place, they will not incur the new rules for the stress test.
After January 1 you will have less buying power and will have to settle for a smaller place. This is why we encourage you to contact us to find out how we can help you find your home before the deadline.
The best advice would be first to go to a mortgage broker to find out how much mortgage you can carry. They can find a lender to help you get a good rate and will also explain what this “stress test” can mean for you personally and how much purchase power you will have.
Our Winch Walton Ottawa Real Estate and Staging Team will be able to scour the market for you to find homes in your price range. Even though you may have to jump through a few hoops with these new rules, rest assured that if you seek out the right advice, it will make the transition much easier for you.
Contact the Winch Walton Ottawa Real Estate and Staging Team to help with any of your real estate selling or buying needs.