Proposed condo rules could make it harder to buy

 

Real Estate
Real Estate

The federal government is considering new rules to make it harder to qualify for a loan to buy a condominium.

The new regulations would be part of Ottawa’s effort to toughen borrowing guidelines and tamper down Canadians’ debt.

The change would add 100 per cent of condo fees to the expenses considered when a buyer is applying for a mortgage. Currently, only 50 per cent of the fee is considered.

Toronto realtor Brad Lamb says the move is going to push a lot of people out of the market.

“A lot of people are going to get locked out of buying a condo, which, in most cities in Canada, is the most affordable option for housing,” he told CTV News. “It’s a terrible idea.”

The maximum length of a mortgage could also come down from 35 years to 30.

“You’re talking $150 to $200 more per month, which works out to $40,000 in purchase price,” Lamb said.

Craig Alexander with TD Bank says the new rules might not take people out of the market completely.

“It really wouldn’t take people out of the market. It would mean people would end up taking a lower mortgage and buying a lower-priced house,” he said.

Prime Minister Stephen Harper acknowledged the rumours of the new rules.

“The government remains concerned about growth and the level of household debt, and will look at taking prudent steps to moderate that growth,” he told reporters. “We’ve seen some moderation recently.”

There is also speculation the government might increase the minimum downpayment required. Currently it is five per cent.

source-http://www.ctv.ca/CTVNews/Canada/20110114/condo-rules-110114/

Want to learn more on HST and how it will affect your property, please call Vijay Gandhi

From all economic indicators, it appears that higher interest rates are on the way in 2012.

What would your monthly payments be at current home prices in your neighborhood?  Compare your options using CENTUM Mortgage Calculators.

Vijay Gandhi is an independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.
Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. To availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

Advertisements