Kevin W Lee

Kevin W Lee

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
  • 416-992-3500
  • 905-471-2121
  • 905-471-0832
  • 165 Main Street North
    Markham, ON L3P 1Y2
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Welcome To Kevinwleeproperty.com

Properties For Sale

44 Stanley Greene Blvd., Toronto, ON M3K 0A9
Beds: 4 / Baths: 4
2,500 living area

For Sale 44 Stanley Greene Blvd. Downsview Park

New Mortgage Rule Changes

What You Need To Know

The Office of the Superintendent of Financial Institutions Canada (OSFI) published the final version of Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures.

The revised Guideline, which comes into effect on January 1, 2018, applies to all federally regulated financial institutions.

  • Mortgages are to be qualified at the greater of the BoC 5 yr Benchmark rate or the contract rate +2%
  • Benchmark rate today 4.99%
  • Previously, stress test requirements only applied to insured mortgages, variable mortgages and terms less than five years
  • Applicable to Banks, Trust Companies, Monolines and all federally regulated lenders

Scenario

A family with an annual income of $100,000 with a 20% down payment at a 5 year fixed rate 3.09% amortized over 25 years can currently afford a home worth $725,000

Under the new rules, they need to qualify at 5.09%. Now they can only afford a home worth $600,000—a difference of $125,000

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Market Stats September 2017

 

Communities

Cities
Toronto

Toronto is the provincial capital of Ontario, and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. ...

Markham

Markham is a town in the Regional Municipality of York, located in the Greater Toronto Area of Southern Ontario, Canada. Markham is the largest town and ...

Richmond Hill

Richmond Hill is as diverse in its ethnicity as it is in its attractions. Experience international foods from one of hundreds of restaurants in the Town ...

Aurora

Aurora is an affluent beautiful town in York Region, approximately 20 km north of Toronto. It is partially situated on the Oak Ridges Moraine, and ...

Whitchurch-Stouffville

Whitchurch–Stouffville is a municipality in the Greater Toronto Area of Ontario, Canada, approximately 14 kilometres north of the City of Toronto. ...

BUY FIRST OR SELL FIRST?

BUY FIRST 

  • Hunting experience more enjoyable. 
  • You’ll have time to wait until the right home comes up for sale. 
  • Less stressful knowing that if your offer is unsuccessful, you can wait for the next opportunity to come up.

 The downside

  • Unable to sell your home fast enough, you will find yourself owning two homes at once.
  • Could mean paying two mortgages at the same time, not to mention all the other costs of home ownership. 
  • Trouble securing a mortgage for the new home. 
  • As a buyer with an existing home to sell, you can protect yourself by making your offer conditional on the sale of your current home. That means if you’re unable to sell within a specified period of time, you’re able to back out of the transaction. 
  • Worth pointing out that this condition will likely make your offer less attractive to the seller, especially if you’re buying in an area with a hot market.

SELL FIRST

  • Biggest benefit is that you will know how much money the sale brought in, which will help determine how much you can afford to pay for your next home.

  The downside

  • You'll find yourself in a race aganist the clock with your closing date looming and potentially no home to move into when you move out of your current home.
  • You may end up rushing the buying process and settling for a home that isn't ideal for you or pay more than our planned because you fell pressured.

​HAVE A CONTIGENCY PLAN

  • Have a back-up plan in place in case you are left with two homes, or no home, for a period of time. 
  • If the sale of your home closes first, you might consider a short term rental or moving in with family or friends. This could be better than settling for a less-than-ideal home because you are rushed.
  • If the purchase of your new home closes first, you might need something called “bridge financing” to cover the down payment and other closing costs until the sale of your current home closes. 
  • No matter which option you choose, it’s important to remember that a registered real estate professional is knowledgeable about market conditions and will offer advice and solutions to guide you through the process 
  • They will be able to discuss various scenarios to make sure you have realistic expectations about what may happen and help you come up with a plan that works for you and your growing family.