New mortgage rules and market predictions
New mortgage rules that took effect earlier this summer shouldn't negatively affect homeowners planning to list their property for sale, say the presidents of two major real estate associations.
With the newly implemented mortgage regulations now in effect for almost a month, real estate and mortgage professionals have an optimistic view of the outcome. In this article from Ifpress, Ron Abraham, president of the Ontario Real Estate Association, and Bob Jablonski, president of the Calgary Real Estate Association, share their market predictions.
While the move to reduce the maximum amortization period on insured mortgages from 30 to 25 years may make it difficult for many first-time buyers, it is speculated that the effects will be positive in the long-term. "Homebuyers may need to reduce their expectations, Jablonski said. "Sellers need to be realistic in their asking price. Every buyer I've ever known wants to get it for less." Prospective home buyers should consult a qualified Mortgage Broker for mortgage advice.
Recently released statistics from the Canadian Real Estate Association (CREA) point towards a balanced housing market. Listings in the Toronto area have increased, which is believed to lead to more balanced conditions, while low sales in the Vancouver area have caused the Real Estate Board of Greater Vancouver to announce a "buyer's market."