Since the new B20 rules had been introduced last year, many individuals working in the real estate/mortgage industry. This is not the case however, for high-end properties compared to the over-all housing market. Real estate experts say this is because individuals looking to buy expensive property usually have the funds upfront, it really is not an issue if they pay a little bit more than they typically would have previously.
These new rules were introduced by the government in an attempt to cool down a supposed ‘overheated’ real estate market. One of the major changes included limiting the maximum amortization to 25 years as opposed to 30 years for high ratio (insured mortgages; less than 20% down payment) mortgages. Despite this change, it has not stopped buyers, domestic and foreign, to invest in the Canadian Housing Market. This is due to harsh conditions in the stock market and record low interest rates although as of recent, rates have been steadily increasing. Mortgage interest rates are projected to steadily climb for the next couple of years therefore, everybody is taking advantage of the best rate today.
Sales of homes valued over $1,000,000.00 were up by 60% in Toronto (GTA), Vancouver, and Calgary compared to the first half of 2012, a report released by Sotheby’s International Realty. Based on these statistics, Canada is not letting these new rules bring them down. Contact Robert Clancy today if you are looking to invest in this booming housing market!