While many believe that these new mortgage laws have come a little too late, their creators are hoping that this will soften the blow and not make the market crash as hard as some are predicting it will. The Brantford/Brant County Real Estate market, like the rest of Canada, is hoping to benefit from these changes.
One of the biggest parts of the new law has to do with the amount of money a buyer can take in a loan when paying for a house. Now at 80% from 85%, this rate will give the buyer less debt in the long run, however many analysts are reporting that this decrease will make it more difficult for people to purchase homes, possibly leading them to rent rather than buy. Along with the lower rate for borrowing money, the payback period has dropped to 25 years from 30 years. This would give home owners a chance to pay back anything owed in 25 years, and after that would be debt free. Some reports are showing though that most Canadians only have 15 years left on their mortgage, saying this part of the law is not beneficial in the long run.
While the government is hoping that these changes will help home owners with their debt, many are saying they waited too long in order to do any real help. With less time to repay loans, many officials are predicting higher payments will be required. With higher payments, homeowners may not be able to reach the unrealistic goals and won't be able to back their borrowed money in a reasonable amount of time.
With stricter mortgage rules, many first time homebuyers will feel that renting is a better idea than buying. Although rental prices are reported to increase due to the laws, it is leaving first time buyers in a financial bind. While more renters mean more money in the Brantford/Brant County Real Estate market, it is also predicted to reduce prices once the rush of buyers has dropped off.
If you have any questions regarding the new mortgage laws, or are interested in buying or selling Brantford/Brant County Real Estate, feel free to contact me! I look forward to hearing from you!
Wally Dufrat | Sales Representative
RE/MAX Twin City Realty, Inc. Brokerage
RE/MAX Twin City Realty, Inc. Brokerage
Over 525 Closings!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantfordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
515 Park Road North | Brantford, ON N3R 7K8 Direct: (519) 752-5400 & (877) 759-5900 | Cell: (519) 761-7400 | Fax: 519-752-3400
Before You Buy or Sell Your Next Home, Visit My Websites at:
www.BrantfordHomeInfo.com or www.FreeBrantfordHomeInfo.com for FREE Information!
Connect with Me
No comments:
Post a Comment