“My question is this: With the new OSFI rules coming down the pipeline, are we better of rushing in now with 20% down and buying some townhouse outside of town (guh…not ideal), or do we wait and hope that the rules bring in much lower house prices and jump in when prices drop to a sustainable level My fear is we do the latter and won’t qualify for a mortgage despite a correction in prices because of the new rules and higher interest rates.
We are an average income earning nuclear family the city, like that means anything anymore.” So I asked him about the family and its finances. Well, if Andy & his family put 100% of their savings towards a down payment and get a fixed-rate mortgage at 3.5% (25-year amortization) they can afford a property selling for 1,500.
Good to see it wasn’t only turkeys that got stuffed this weekend….
M43BC 16 16261 23a Avenue, Surrey Jul 8:8,000 Oct 8: 8,000 Change: – 30000.00 -3% https://ca/surrey-real-estate/16261-23a-avenue/16 https://evaluebc.bcassessment.ca/Property.aspx?
“I’ve been holding off buying a home for my family in Victoria for a number of years now.
We have moved 3x in the last 4 years with our rent going up considerably each time.Thought it was overpriced in the lower mainland then.has DOUBLED.If we bought we would have massive equity in our home and unless prices drop by more than 50% we would be fine. This was the same advice 5 years ago and it has been so wrong.one knew it could go parabolic like this but nonethe less homeowners that bought 4 years ago have done well. I can’t wait for the real estate bubbles to collapse in Toronto and Vancouver.In this scenario they have less house and a lower debt, but a far larger monthly financial cushion. “My fear,” Andy says, “is that by that time higher mortgage and the OSFI rules will close that door for us altogether.” This is why people fail, of course. Since people’s incomes are static, and the cost of life keeps increasing, either sellers drop their price or the real estate market freezes.In Andy’s situation, his purchasing power crumbles by a third as the mortgage increases 2%.
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If this new stress test causes prices to drop great. I’ve been reading blog for years and as much as I believe a correction is sorely needed, have a feeling the following will happen: After the OSFI brings in the new stress test in 2018, a combination of the Bo C/federal and provincial governments will bring in measures to dull the effects of a 2% increase in interest rates for various political reasons (ie–upcoming elections).