New rules have come into effect June 1 to try to cool down a very hot real estate market. Uninsured mortgages will now be either at the mortgage contract rate plus two per cent or 5.25 per cent — whichever one is greater. This currently applies to uninsured mortgages. So, what does that mean for home sellers or buyers? Buyers will have to rethink what mortgage they can afford, and sellers may not get the bidding wars that were so common lately.
Buyers:
Get a good mortgage broker for mortgage pre-approval
The best advice would be to consult a mortgage broker to find out how much mortgage you can carry. Brokers can find lenders 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.
Contact our Team
Our Team will be able to scour the market for you to find homes in your price range. We know which houses will become available before the rest of the public and often we know if houses may be listed for a quick sale. Since this is a seller’s market houses move quickly. You don’t want to miss out on any homes you can afford by waiting. We can also help you find a mortgage broker or legal advice to get you started.
Sellers:
Evaluating your home
It doesn’t matter what you think your home is worth – you need a buyer to agree with that price. That is why you need to have a comparative market analysis done. Our Anne Winch Real Estate Team will compare other homes that have sold in your neighbourhood to your home. Included in this analysis is the condition of your home, any renovations, size, age, neighbourhood, etc.
Staging
We have known for many years that a staged home shows and sells well plus we provide our professional staging service for free. Your home is in direct competition with many homes, and we want your home to look its best at first glance. You have only a few seconds on the internet to make an impression. Staged homes are visibly more pleasing to the eye, and it is crucial to make a strong impression to attract buyers.
Negotiation
Our Team is trained to help generate offers, negotiate on your behalf, and sell your home within the price range we suggested. We are here to help guide you through any bumps in the road during the buying or selling process. We also will help with the paperwork that is needed when selling a home.
So don’t get stressed over these new rules. Give our Team a call and we will be happy to help you get your home listed and sold in no time or help you find a home in a seller’s market.