Hi Sarah Logue here from Team Logue and I’m joined with Deborah Monroe and we’re gonna talk about how the mortgage industry is affecting this current seller’s market and some of the changes that are coming into play that are going to affect us even greater.
It has been interesting to see that the economy at least the global economy is facing so many interesting pieces right now yet our local Halton economy continues to grow strong as real-estate continues to push numbers. The new stress test seems to be the hot topic for everybody.
Tell us what’s going on? Yeah absolutely, so April 6 is when it takes effect and it’s for the clients who are purchasing with an insured mortgage so people who are putting less than 20% down and it’s going to change their purchase amount anywhere from 3 to 4 percent. For the better.
What we qualify on a benchmark rate is actually going to be lowered by about 30 beeps Wow so that could be anywhere from 50 to $25,000 for a client. So the people that we were seeing denials on in 2018-2019 where we were really struggling getting even some of the first-time homebuyers or the move up buyers to get that next chunk of money, that stress test that softening as you call it the beats are softening right to allow people to extend their dollar a little bit further.
So that really helps clients get into the market right first for the first-time homebuyers or people who just have the 5 or 10% down so it really helps with them qualifying and getting them to purchase something maybe they initially were qualified for a townhouse right for 600,000 now they can actually move into a semi for 625 so it it really stretches what they can afford.
That’s amazing because the reality is as the Burlington, Oakville, Halton prices continue to increase we are seeing panic in younger buyers as to how they’re gonna stay in this community so if they are given a little more flexibility and some of those rules are softening it’s gonna give them more power to buy with less down and save and let their equity look grow actually in that property.
The neat kickback on that will be if it is a seller’s market we’re seeing properties move as fast as almost 2017, we’re gonna see a flooding of buyers catch up to us so we should encourage more and more sellers to get on the market as more and more buyers come through your door and have more ability ability to buy. Well absolutely, I mean this is definitely a seller’s market right so if you’re in it I think we’re gonna see the multiple offers again.
We are yeah absolutely.
So spring market is here and things are going to heat up again like like they did two three years ago. Incredible.
If you need a mortgage call Deborah Monroe she’ll take care of you and she’ll explain to you exactly how this new stress test could play to your favor.
For all the details on buying, selling check us out at teamlogue.ca