A new government always means changes to the economy and the home buying process. We recently learned that one change is going to affect potential homeowners looking at houses that are priced at between $500,000 and $1 million, as well as those over $1 million.
New federal mortgage rules have changed the amount that you need to put down on your home. This means that if you are buying a home priced at:
• Less than $500,000 – You will be expected to put down 5% for the down payment.
• More than $500,000 – You will be expected to put down 10% for the down payment.
• More than $1 Million – You will be expected to put down 20% for the down payment.
Finance Minister Bill Morneau was quoted as saying that he estimated that the new laws would affect about one per cent of the overall real estate market. The new laws are meant to help control the hectic real estate markets in Vancouver and Toronto, while not punishing markets that are struggling or maintaining a healthy growth. This new law may cause a surge in home purchases as potential home buyers rush to complete transactions before the new rules are fully implemented.
In Vaughn, ON, the changes will be less felt. The new rules are expected to primarily effect the Toronto and Vancouver housing markets. However, if you are concerned that your home purchase might be affected, you should buy sooner rather than later.
Schuren Skriskandarajah is a trusted realtor who always sees the big picture. From federal laws to local initiatives, Skriskandarajah can help you negotiate the complicated world that is buying and selling real estate. If you are looking for a home or thinking about selling a home in Vaughn, ON, contact Schuren Skriskandarajah today.