The New Mortgage Stress Test For Canadian Morgages

It's your favourite real estate agent Michael Prior with Keller Williams I just want to talk to you about the upcoming changes that are happening right now the Real Estate Market

As always the government's putting their hands into mettle a little bit They're talking about adding a new stress that's it's almost 100 percent guaranteed to go in and that's going to be for everybody for all mortgages whereas it used to just be high ratio mortgages In general terms this is probably a good thing long-term speaking it means that if you qualify for a 3% mortgage for example or if they give you a 3% mortgage, you have to qualify at 5%, so two points higher, 200 basis points higher So what this is going do is it's gonna actually shock the market a little bit It's going to change the market

It may be a little too soon for this seeing that the interest rates are going up and we've already had a bunch of new regulations this year In my opinion we should probably let it settle for a bit But knowing this, and my guide to you is to help you out a little bit and give you some ideas If you're going to be buying a property this year or in the next six months with a mortgage, this might be an ideal time to buy because this is what a lot of properties in flooding the market Consequently if you're selling, selling before the end of the year might be a good idea as well because your buyer pool is going to shrink

The people that might want to wait for 2018 to sell are people who are buying with a lot of cash because if the mortgage rates go up or the stress test causes peoples affordability to go down, which is what it's going to happen, that means the prices could drop but not as much relatively speaking So people who are really going to win in this case are people with a lot of cash, people who have a high equity portion in their in their house, or just a lot of cash They're going to be able to buy properties at a very low price So if you're if you need to buy something, now it might be the time to buy if you're looking to sell this also might be a good time to sell before the stress test comes in, unless of course you got a lot of cash

I hope this gives you a brief understanding what's going to happen If you guys have more questions feel free to give me a call or shoot me a text

Source: Youtube

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