From the blog...

OTTAWA MOVES TO TIGHTEN THE MORTGAGE MARKET

Posted on: October 11th, 2016 by Chris Scott

The Federal Government is taking steps to ease emerging risks in the country’s housing market. The new measures should slow the injection of foreign cash and will tighten the eligibility rules for prospective borrowers. The sizzling Toronto and Vancouver markets are out of reach for many Canadians and some fear that foreign investment money in these markets has helped drive up prices. There is also growing concern that Canadians have too much debt.

Beginning on October 17, 2016, all insured mortgages will have to undergo a stress test to determine whether a borrower could still manage to make his/her mortgage payments if the rates went up or their income went down. Currently the test will be to ensure all insured borrowers can qualify based on the posted rate for a 5-year rate mortgage (now 4.64%).

On November 30, 2016, several eligibility rules will tighten on mortgages where borrowers made down payments of at least 20% of the purchase price.

The Government plans to tighten a loophole on an exemption that allows homeowners to avoid paying capital gains on tax on the sale of a principal residence such that this exemption will only be available, going forward, for Canadian residents and families will only be allowed to designate one home as their primary residence.

Other key measures that will affect all insured mortgages is a maximum amortization of 25 years, a maximum purchase price below $1 million, only owner-occupied properties being eligible and a total debt service ratio of 44% at the time a loan is approved.

Experts believe these measures will serve as a “tap on the brake” that could lead to a “slight, additional slowing of a market that is already slowing”.

New consumers unable to meet these requirements could be shut out of the market and even consumers with existing mortgages might be unable to easily switch lenders. It remains to be seen whether the changes will have a cooling effect on hot housing markets or how much more difficult it will be for would-be homeowners to secure mortgages.

If you have any questions about this – or anything else related to real estate, please give me a call.

Chris

    
 
 
        
   Anny Metivier 
 2024-08-13
 
 
  Over the years, with multiple military moves, we’ve had the opportunity to work with many real estate agents, and we can confidently say that not all are created equal. Chris, by far, has been the most trustworthy and easiest real estate agent we’ve had the pleasure to work with.
  
 
       
   Jake Moffat 
 2024-06-07
 
 
  Colin has been the best realtor to work with and helped us buy a great house in the perfect neighborhood. Colin and the rest of the team at Chris Scott were incredibly helpful the whole way and always available to answer questions, show us houses at a time that was convenient for us and were just generally professional and friendly during the whole process. We will recommend Colin and the team to our friends and family.
  
 
       
   Faith Woodley 
 2024-03-13
 
 
  I was a co-Executrix of an estate, and we had a condo that we had to sell for the estate.  In order to get the property ready for sale, we had to have the over 5,000 square foot condo painted and the carpets replaced.  Since the property was empty, Chris recommended a home stager that he uses on properties that require these services, and she did a fantastic job of staging the condo. It took the condo to the next level. The condo sold for a phenomenal price, and we were very happy with Chris Scott and his abilities.  He always gives over 100 percent to get the job done!  I recommend him to anyone that requires the services of a great real estate agent.
  
 
       
   Emily Bozanich 
 2023-10-07
 
 
  We worked with Rachel and she was beyond diligent. She is so organised and meticulous with details, it really helps when buying a home. She even agreed to do a virtual walk through for the home we ended up buying because we weren’t going to get there ourselves prior to offers being reviewed. She was also great with recommending areas to consider and avoid. Highly recommend.
  
 
       
   Cy Dixon 
 2023-10-06
 
 
  Rachel was amazing. She helped me find the perfect home for me and my son during a challenging time in my life. She was extremely patient and empathetic, professional and knowledgeable. I highly recommend her. No one will work harder for you than Rachel.
  
 
       
   Jeff C 
 2023-10-06
 
 
  Awesome realtor team very helpful and knowledgeable
  
 
       
   Nathalie Groupe Godin 
 2023-10-06
 
 
  Great service. Very knowledgeable. Super helpful. I’d use this team again.
  
 
       
   D Hynders 
 2023-10-05
 
 
  I recently used Chris' team to purchase a new house and I have to say that it was a pleasure to work with them.
  
 
       
   Megan Bixby 
 2023-10-05
 
 
  My husband and I purchased a house in the surrounding Ottawa area with the assistance of Colin from this group of individuals. We unfortunately were left with no choice but to purchase a home sight unseen due to our work circumstances. We originally considered not purchasing because of this.
We deliberated and chose to purchase a home after participating in FaceTime showings and we could not have been more satisfied. Colin was objective, professional, calm, informative, and realistic. He listened to our needs and helped us choose our home. The fact that we were pleasantly surprised, and a year later remain pleased as punch, says everything about how talented this company is. Will, without a doubt, use this company when we leave Ottawa.
  
 
       
   André Desjardins 
 2023-10-04
 
 
  We worked with Chris to find a home back in 2011 that would suit our desire to be close to work. He was nothing but professional and courteous! Listening to our needs and showing us what we were looking for. Years later, when we thought about down sizing and finding a renovated home, he took us around to see some in the neighborhood. He always open to helping us out in our searches

From the blog...

OTTAWA MOVES TO TIGHTEN THE MORTGAGE MARKET

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