My Take On Higher Downpayments

The federal government has decreed higher downpayments for those buying between $500,000 and $999,999 and here's my take.

Clearly, this was a 'surgical strike' aimed primarily at the sizzling sellers markets in Toronto and Vancouver.  A common theme of this Kitchener Waterloo real estate blog is markets are local.

So how will this affect Kitchener Waterloo real estate?

I expect minimal impact locally as the average detached home is selling for about $420,000.  As a result, first-time buyers are able to get into the market for well under $500,000 and they will continue to be able to buy with 5% down.  For move-up buyers, I always suggest a minimum downpayment of 20% to avoid CMHC insurance premiums.  I've lost business by suggesting it may not be prudent to buy a $500,000 home with just 5% equity. 

In short, if this new policy affects you locally, it's a choice you've made.

Need help figuring out if the time is right for you to move up to a better home?  Feel free to call, text or email 519-505-4488 jeff.gingerich@century21.ca.   

 

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Jeff Gingerich

Jeff Gingerich

Sales Representative
CENTURY 21 Home Realty Inc., Brokerage*
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