200 a month !!! Really?

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Either way, hasn't been fluctuating much at all. Since Jul-15 it's been the same yet the market has easily picked up 15% in the same period. In some areas as much as 30%.

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nfq said:
What will the Stress tests mean?

http://www.cbc.ca/news/business/ottawa-housing-tax-real-estate-1.3788725
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Flippers and investors already had to qualify at the posted 5 year rates, so their affordability remains the same.

Also, I believe around 50% of all new mortgages are insured, so half of all buyers had to qualify at the 5 year rate too.

I'm thinking it won't have a huge impact on the market, but it's certainly an added hurdle on some buyers so if it does have an effect, it'll be a cooling one.

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mmmnaked said:
Flippers and investors already had to qualify at the posted 5 year rates, so their affordability remains the same.

Also, I believe around 50% of all new mortgages are insured, so half of all buyers had to qualify at the 5 year rate too.

I'm thinking it won't have a huge impact on the market, but it's certainly an added hurdle on some buyers so if it does have an effect, it'll be a cooling one.

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Could it mean the government is trying to see what potential changes could do to the housing market by doing these tests?

I don't think anything goes will change before 2018, but I can see they'll need to do something eventually.
 
nfq said:
Could it mean the government is trying to see what potential changes could do to the housing market by doing these tests?

I don't think anything goes will change before 2018, but I can see they'll need to do something eventually.
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I think they're doing what they can to discourage people from drowning themselves in debt, while having a minimal negative impact on the market.

Think about how much of an effect real estate has on Toronto and the overall economy...not to mention the massive taxes the city and province collect from all the new housing and construction. I'm sure they're not rushing to cut off that gravy train. Fine balancing act.
 
chiller said:
Unfortunately this is not possible for everyone ... even if it is possible some people prefer to continue progressing in their respective careers and that is a realistic and personal choice that you are saying is wrong.

so what's the matter with people ? I'd say nothing's wrong but a personal choice.
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I want to get a dog but I don't want to give up any hobbies, especially gtaming, or work or sleep. Plus I don't really want to be around the dog too much. But I want a dog. It's my personal choice.
 
Lots of overseas money coming in. Got a call today from an agent. Caller ID said it was a local call, but the delay in the conversation, said that it was possibly from overseas. Lots of demand and no supply in my neighborhood, does me zero good right now.
 
Baggsy said:
Lots of overseas money coming in. Got a call today from an agent. Caller ID said it was a local call, but the delay in the conversation, said that it was possibly from overseas. Lots of demand and no supply in my neighborhood, does me zero good right now.
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I'm seeing multiple (upwards of 12) offers on just about every house that interests me in Mississauga; the bidding was already ridiculous in Toronto, but its happening in the burbs too. It's a tough market for buyers, you gotta have the cash and be able to put forth a strong, firm offer.
 
Its sure making it better for sellers, no more waiting 60 days to find out your buyers finance didnt come through, no hoping to get your ask, no sitting weeks on market. Like flies on road kill.......
 
nfq said:
What will the Stress tests mean?

http://www.cbc.ca/news/business/ottawa-housing-tax-real-estate-1.3788725
Click to expand...

Seems to me that they're going to mandate that people are aware of what their payments could be if/when interest rates go up.

So instead of people blindly signing 5 year mortgages at 2.5% right now, already on the bleeding edge of their affordability, there will be some checks and balances in place to make sure that person is asked/checked if they can still afford that same house if mortgage rates were 3%, 4%, 5% etc etc.

It seems like a very wise move to me. A lot of people don't think beyond tomorrow, much less 20-25 years down the road when they're mortgages are still in place and interest rates are likely to be different.
 
I just did a mortgage and the guy told me to lock in at 5yr 2.5% so he can do it at 20% down (self employed). I told him no way, I'd rather pay 25% down and get an open mortgage. I know rates are going to go down next year. I'm hoping for negative rates soon :D

PrivatePilot said:
Seems to me that they're going to mandate that people are aware of what their payments could be if/when interest rates go up.

So instead of people blindly signing 5 year mortgages at 2.5% right now, already on the bleeding edge of their affordability, there will be some checks and balances in place to make sure that person is asked/checked if they can still afford that same house if mortgage rates were 3%, 4%, 5% etc etc.

It seems like a very wise move to me. A lot of people don't think beyond tomorrow, much less 20-25 years down the road when they're mortgages are still in place and interest rates are likely to be different.
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Sorry, but if you think interest rates have anywhere left to go but up, well, good luck with that.

And you know negative interest rates don't apply to mortgages, right?
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