New rules crimp home buying power

The Globe and Mail- The GTA’s new homes market has reached a significant milestone. Anyone with a family income of less than $100,000 a year and a down payment of 10 per cent or less doesn’t have a snowball’s chance in July of qualifying for a mortgage on any condo with a price tag greater than $410,000 or a detached home costing more than $450,00.

To put this into perspective, at the end of March, the last month for which up-to-date figures are available, the average new GTA condo sold for $420,097 and the average new home cost $490, 395. Nor can would-be home buyers find much relief in the resale market. The average price for homes sold in April through the multiple listing service was $437,087.

Nor do the months ahead hold any hope of relief. With increases in interest rates forecast and with house prices certain to continue to rise as long as demand outstrips supply, and other factors such as the harmonized sales tax, ever larger municipal development charges plus rising land and construction costs are factored in, the cut-off point for family incomes needed to qualify for mortgages is certain to rise…

New rules crimp home buying power – The Globe and Mail

Mortgage rates on the rise again

Financial Post- A new survey says more than four out of five home buyers feel comfortable with their debt, but another hike in interest rates might get Canadians squirming next time they’re polled.

Canada and Mortgage and Housing Corp. surveyed 2,503 mortgage consumers between Feb. 11 and Feb. 28 and found 81% were comfortable with their current debt levels. However, the survey was done before three successive hikes in interest rates that have pushed the five-year, fixed-rate, closed mortgage from 5.25% to 6.25% in less than a month.

"Rates were low throughout most of the time [of the survey]," said Pierre Serré, CMHC vice-president of insurance products and business development, adding it was unclear whether the 81% figure might fall because of the hike…

Mortgage rates on the rise again

Should you be concerned about new mortgage rules?

The Gazette- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should you be concerned about new mortgage rules?

Should I be concerned about Ottawa’s new mortgage rules?

Financial Post- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should I be concerned about Ottawa’s new mortgage rules?

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