Mortgage Trends: Real Estate Insight Burlington South

Moving to Burlington Ontario? Looking for a Lifestyle Change?

Burlington Waterfront Life.
Come to play. Decide to stay.
Burlington’s kinda like that.
http://www.colleenscard.ca

Burlington Real Estate Market Insight from the RBC:
Jennifer Grindatto – RBC Mortgage Specialist

The market’s changing. There’s a lot of activity out there. Bank of Canada has raised their rate twice in the last 8 weeks and at least one more increase is anticipated.

Mortgage Recap.
February 2016: Down payment rules changed to a minimum of 5% down up to 0,000 and 10% above that.

October 2016: Introduction of the Stress Test. If you had less than a 5 year term you must qualify at the qualifying rate not the actual rate you were getting.

November 2016: Stress Test revision to include insured mortgages (anything less than 20% down)

As a result the Bank of Mom and Dad has had a huge presence in the market. Many parents are lending/gifting up to 20% of the down payment to allow their child to qualify at the 5 year fixed rate.
Their is a BIG POTENTIAL CHANGE anticipated to remove the ability to qualify at the actual rate.

At this moment, the Bank of Mom and Dad is still open.

Every home buyer need to get LOCKED IN with a pre-approval as soon as possible. If and when changes occur and an application is already in the system, many times the application can be held for 120 days honouring the rules at time of pre-approval.

Bottom line.
There is a minimal impact if you have 20% down. A lot of people are opting for five year fixed rates. Important to note that SECOND TIME buyers porting their mortgages to a new purchase, MUST RE-QUALIFY.

Investing.
People are taking advantage of the low interest rates and freeing up equity for renovations to improve value or to purchase an investment property.

0 Junk Removal Rebate on Investment Purchases.

Burlington remains Canada’s number one mid-sized city 5 years running and number one in Ontario.

Burlington remains number one mid-sized city in all of Canada which has recently recognized as a Global Luxury Sales Leader. It’s no wonder with all of it’s fantastic Waterfront events like the Sound of Music Festival and Canada’s Largest Ribfest.

Colleen DePodesta,
Sales Representative
Re/Max Escarpment Realty Inc. Brokerage South Burlington