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| The Walsh & Volk Team Alison,Lou,Ed, Dan
905-332-2207
Re/Max Escarpment Realty Inc. | |
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It's My Opinion |
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| Wednesday, 24 February 2010, 09:51:06 AM | Effective April 2010 changes to mortgage qualifications for insured mortgages come into effect! The key issues in this change are:
1. ) Any non-owner occupied properties will now require 20% down;
2. ) All borrowers must meet same standard for five year fixed rate even if they choose a mortgage with a lower interest rate and shorter term;
3.) The maximum amount you can withdraw for refinancing will be 90% of value compared to 95%.
All of the above changes are for the government backed mortgages such as Canada Mortgage and Housing Corp. insurance on high ratio mortgages. Some of these changes are to discourage speculation because of the low interest rate.
Right now, borrowers may purchase a residential property with a 5% down payment. The change will require a 20% down payment for small non-owner occupied residental rental properties. Borrowers purchasing owner occupied residential properties which also include some rental units, like a duplex, will still be able to access government backed mortgage insurance with a 5% down payment.
Other changes in the qualifications is based on qualifying for a five year term instead of a three year term based on your gross debt service and total debt service ratios and is intended to protect you with additional flexability should the interest rates rise.
Right now homeowners can refinance their home and increase the borrowed amount up to 95% value of their property. The new change will lower the maximum refinancing of a government backed high ratio mortgage loan to 90% of the value of the property.
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| Sunday, 31 January 2010, 05:47:49 PM | The Greater Hamilton-Burlington area resale market reported a total of 779 units sold in
December, indicating an increase of 70 per cent over the same month last year, but only 18 per cent higher than December 2007.
The total unit sales for 2009 are being reported at 5.8 per cent higher than 2008, while new units listed are 6.8 per cent lower for the year-to-date, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).
“December 2009 was the best December RAHB has seen, rounding out the best fourth quarter in area history.” said Joe Ferrante, RAHB President. “December is traditionally
the slowest month of the year, but that was not the case in 2009.”
Residential properties sold during December totalled 733 which included 568 freehold properties and 165 condominiums. Commercial sales for December, including industrial, farm, vacant land and business, totalled 46 units.
The average price of freehold residential properties sold in the month of December was $298,641, an increase of 13 per cent over the same month last year, and a decrease of 10.2 per cent over last month.
The average price for all freehold residential properties sold in 2009 was 2.2 per cent higher than 2008.
In the condo minium market the average price of condominiums in December was $241,574, an increase of 26.3 per cent over December 2008, and an increase of 5.3 per cent over last month.
The average price for all condominium properties sold in 2009 was 4 per cent higher than 2008. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
December’s total residential average sales price increased 14.6 per cent over the same month in 2008, and the average price for the year to date increased 2.6 per cent over 2008.
The total number of units listed for sale during December was 826, which is 51 per cent more than were listed in the same period in 2008. “The Greater Hamilton-Burlington and the
surrounding housing market performed reasonably well in 2009, outperforming most other markets in Ontario,” added Ferrante.
Unit sales reflect “all property types” including residential, condominiums, commercial property, farmland and sale of businesses. | |
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