TORONTO HOUSING MARKET
Wednesday Oct 19th, 2016
Going forward with the new mortgage rules affecting Toronto housing market, if you do choose a 5 year fixed rate currently at rate of 2.39% , you will not be qualified at same rate but, will now be qualified at the bench mark rate of 4.64%. This surly is going to reduce the buying power in the market. For example previously with an income of $100,000.00 with good credit a person could purchase a home for the price of $710,000.00, with the new rule now with the qualifying rate of 4.64% that would now drop to $575,000.00. This rule will make a huge difference to the buying power in Toronto housing market. This change will result in most Canadians for far less mortgage amount than anticipated earlier. After October 17th this new rule will be applied to all new buyers looking to buy a home in this market. Other addition to these changes Buyers can not exeed 39% of there income towards carring costs, the maximum TDS should be 44%. These changes are definitely going to affect buyers in Toronto housing market. This Market Watch Buffer is to insure that Canadians will continue to be able to easily service there mortgage payments safely in the event of interest rate increase. The new changes will impact the home purchase and also the mortgages according to this Real Estate watch.