Date Posted: December 3, 2018
Don’t ignore your mortgage maturity date, it’s best to work with your Mortgage Broker 6 months prior to the date to see the options available. All this and more on this week’s edition of Open House: The Real Estate and Mortgage Show.
On the real estate side, listings levels are still on the lower end so those looking to purchase have fewer options. On the pricing side, prices are leveling off. Those neighbourhoods with higher demand are still seeing higher prices such as those close to transit and good schools. People are also more driven to ready to move in homes, as opposed to homes that need renovations and major updates. For those homebuyers who are looking at a home that will need renovations, the lenders do look at the MLS listing if there are “fixer-uppers, cosmetic updates needed, handy-man special” type comments. They may request additional documentation to verify the condition of the property.
As the mortgage industry evolves, Mortgage Brokers Ottawa has partnered with a law firm to allow clients to now sign virtually with a lawyer to save time on the part of the clients. Mortgage coming up for maturity and looking to shop around with your Mortgage Broker? You will need to qualify at the new stress test rates of 2% above your mortgage rate. Don’t ignore your mortgage maturity date, it’s best to work with your broker 6 months prior to the date to see the options available and secure a rate around 4 month beforehand.
First time home buyers have been waiting longer to get into the market and more are using gift money from their parents to help with down payment. Qualifying for a mortgage as a single individual under the new stress test rules has decreased the purchasing power substantially. As the first time buyers take longer to get into the market, they are staying home for longer periods which, in turn, affect the ability of their parents to downsize.