Real changes of Olympic proportions!

The distant rumbling you hear are the proposed changes to mortgage term length and minimum down payment.

If the CMHC and the Bank of Canada go through with their proposed changes, from a maximum 35 years to 25 years on a mortgage requiring a minimum 10% down payment, some will suffer, and some will gain.

Anyone already on a 35 year term won't be forced to reduce that term, however, buyers that were relying on a high ratio long term mortgage to get into the market may be forced to the sidelines.

Revenue buyers won't be affected, as the required down payment is already sufficient to cover the spread. Those same revenue buyers will have more to choose from however, due to the pool of elegible buyers being reduced.

These changes will also affect how quickly properties rise in value. With less competition between buyers, prices are sure to plateau and maybe even drop a bit.

Good news for first time buyers only if they have the 10% down they need and can afford a 25 year term.

So, it doesn't matter if you're buying or selling. The market is ripe for your property if you're considering selling.

If you're buying, and you need or want that 35 year term, now's the time.

Contact me for a free Vancouver Real Estate market snapshot of your property's value in today's market.

Dean Wilkins

Century 21 In Town Realty 604.685.5951

 

 

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Dean Wilkins

Dean Wilkins

REALTORĀ®
CENTURY 21 In Town Realty
Contact Me