27 Sep

What’s Your Budget?

General

Posted by: Avaljit Sandhu

What’s Your Budget?
Don’t be house rich and cash poor! Living in a beautiful country like Canada means you should budget not only for your mortgage but also to enjoy life beyond it. A good rule of thumb is to keep your monthly mortgage payment, including property taxes, heating, and half of any strata fees, at around 32% of your gross household income. Stay within your budget and enjoy the best of both worlds—your home and everything else life has to offer.

26 Sep

Fixed Rate-Mortgages

Mortgage Tips

Posted by: Avaljit Sandhu

Did You Know?
Most Canadians choose fixed-rate mortgages, with the 5-year term being the most popular option. Fixed-rate mortgages offer predictability with consistent payments, making it easier for families to budget and plan for the future. Whether you’re buying your first home or renewing your mortgage, fixed rates could provide peace of mind.

Ready to explore your options? Contact us today! 204-914-6812

26 Sep

Attention Renewal Clients

Latest News

Posted by: Avaljit Sandhu

TTENTION RENEWAL CLIENTS! Starting November 21, you’ll have even MORE options to secure the best mortgage for your needs! 🏡💼
OSFI has announced the removal of the stress test for borrowers with uninsured mortgages, which means it could be easier for you to switch lenders without facing extra qualifying hurdles! 🙌
Take advantage of this new change and explore your options.

 

16 Sep

Game-Changing Mortgage Reforms

Latest News

Posted by: Avaljit Sandhu

 

Unlocking Homeownership for Canadians
September 16, 2024

The Canadian government has announced major changes to mortgage rules, making it easier for more Canadians—especially Millennials and Gen Z—to own a home. Starting on December 15, 2024, these reforms will help make mortgages more affordable and homeownership more accessible.

Here are the key changes you need to know:

1. Higher Mortgage Cap

The maximum price for insured mortgages is increasing from $1 million to $1.5 million. This means that more buyers will qualify for a mortgage with less than a 20% downpayment, especially in cities where home prices are higher.

2. 30-Year Amortization for First-Time Buyers

First-time homebuyers and buyers of new builds will soon have the option of 30-year mortgage amortizations, allowing for lower monthly payments. This is a significant change that helps reduce the financial burden for those entering the housing market.

3. Switch Lenders Without a Stress Test

If you already have an insured mortgage, you’ll be able to switch lenders at renewal without needing to pass another stress test. This allows homeowners to shop around for the best interest rates without the worry of requalifying.

4. Encouraging New Home Construction

The new rules also encourage the construction of new homes by offering 30-year amortizations for all buyers of new builds. This is part of a larger government effort to tackle Canada’s housing shortage and build 4 million new homes.

5. Protecting Home Buyers and Renters

In addition to these mortgage reforms, the government is introducing a Home Buyers’ Bill of Rights and a Renters’ Bill of Rights. These measures are designed to protect homebuyers and renters, promote transparency, and make the housing market fairer for everyone.

What Does This Mean for You?

These changes could make it easier to buy your first home, upgrade to a larger one, or get a better rate when renewing your mortgage. Whether you’re a first-time buyer or a current homeowner, these reforms are designed to provide more flexibility and financial relief.

If you have any questions about how these new mortgage rules might affect your home-buying plans, feel free to contact me. I’m here to help you navigate these changes and find the best mortgage solution for your needs.

rules can impact your mortgage or home buying process, feel free to reach out!

10 Sep

2024 Fall Market Outlook

Real Estate

Posted by: Avaljit Sandhu

2024 Fall Market Outlook

The initial Bank of Canada rate cuts this past summer did not spur housing activity as anticipated, but with an additional cut early September and potentially more on the way, they will continue to affect the housing market outlook.

New listing levels are expected to rise as sellers who may have held back enter the market with the hope that lower mortgage rates will attract additional buyers.

While the current Bank of Canada rate of 4.25% may still not be enough to make a dent in home affordability, it does provide a glimmer of hope for potential buyers as interest rates continue to fall.

In addition, while home prices have cooled a bit, home prices in Canada remain among the highest in the world’s most advanced economies (Japan, France, Germany, Italy, and the UK). These still -high prices have resulted in many potential first-time home buyers to withdraw for now. Higher property taxes, higher qualifying stress-test rates, and the current wave of mortgage renewals will also factor into how successful the Fall market will be.

In 2023 alone, the country saw an influx of 46% of new Canadians, which also contributes to housing demands and pricing. As rates continue to drop, the hope is that prices will stabilize owing to increased supply as demand rises.

If you are looking to get into the housing market as a buyer or seller, or simply have questions so you can best prepare yourself for a future move, don’t hesitate to reach out to me today!