Larger down payments will be required by many Canadian homebuyers from next week as a new mortgage rule doubles the amount required by the CMHC for home purchases between $500,000 and $999,000 where the mortgage is more than 80 per cent of the home’s value. The hike, to 10 per cent, will have an effect but one group of buyers is set to feel the biggest pain. 1st time buyers!
The appreciation of home prices in the Toronto and Vancouver markets will slow this year but there will not be a crash. That’s the view of TD Bank economist Diana Petramala whose new report forecasts that the tightening of lending regulations and an uptick in mortgage rates will have a calming effect on the markets. Although the report suggests a 4 per cent rise for Toronto prices and 7 per cent for Vancouver, it is a sharp drop from their respective 2015 increases of 14 and 20 per cent. Petramala sees a “moderate” decline in prices for 2017.
*Quotes from REP e-mag