Ariel Santos at Mortgage Centre
1455 16th Ave, Unit 205 L4B4W5 Richmond Hill, ON, Canada

"Canada Mortgage and Housing Corporation predicted last May that housing prices would fall by nine to 18 per cent from their pre-COVID levels by the end of 2020. Instead prices rose by 13 per cent during the year, according to the Canadian Real Estate Association (CREA)."

Sales are way down ... However, once recovery begins, it will likely accelerate in earnest as buyers seek to satisfy pent-up demand that will build up over the course of the spring and at least part of the summer.

https://www.scotiabank.com//s/mortgage-payment-relief.html

Being Thankfull no matter what !!!

Prime Rate down to 2.45% .. This effects the Variable rates but not the Fix rates ..

Prime rate going down to 2.45% !! This only effects the Variable rates not the Fix rates ...

MORTGAGE PAYMENT RELIEF .. Here's a part of mortgage relief info from Scotiabank ... Check with your individual Lenders and THEY WILL HELP !!! This will not effect your credit rating !!! How do I find out if I qualify for relief measures? If you, or any member of your family, has become unemployed or experiences a material reduction in income due to COVID-19 .. ... What financial relief measures are in place to help me? Scotiabank is here to help our customers navigate this uncertain time. For individual Canadians who are facing hardships as a result of COVID-19, we have a financial relief program in place that includes assistance with mortgages, personal loans, lines of credit and credit cards. If you’ve been affected, we want to hear about your situation and work together to find a solution . Mortgages: Mortgage payment deferrals are available for customers experiencing hardship. A mortgage payment deferral means that you will not be required to make regular payments on your mortgage (principal, interest and property taxes, if applicable) for up to 6 months. During the time you defer your mortgage payments, interest will accrue to the outstanding balance of the mortgage ..

Variable rates are down !! Fix rates up !!

For UNINSURED mortgages ... "OSFI will communicate final amendments to the benchmark rate for uninsured mortgages by April 1, with changes effective on April 6."

Stress test rate on INSURED MORTGAGES will be 4.89% from 5.19% effective APRIL 6, 2020. It’s not significant but it’s a move in the right direction. Read below for details.

Prepare for a hot market !!

Recently, the federal government released more details about its First-Time Home Buyer Incentive Program. While this is an incentive lead by the Canadian government, attached is a brief summary with as much relevant information. We're hoping this will help answer some of the questions.

Good news. First-time home buyers who earns less than $120,000 can qualify for the First Time Home Buyer Incentive program. The Canada Mortgage and Housing Corporation would kick in up to 10% of the purchase price of the home, providing the borrower comes up with the minimum amount for an insured mortgage, which is now at 5%. The mortgage amount plus incentive cannot be more than four times the participants’ annual household incomes. If qualifications are met, the CMHC may kick in an additional 5% of the purchase price of a resale home. For a newly built home, the CMHC may contribute up to 10%. Further information can be found on the link provided.

We believe the federal government and regulators still need to listen Canadians broadly and continue to look especially at the component of the 200-basis point stress test,

Summary from Jan 1, 2016 to July 11, 2019 ... Bank of Canada Overnight Rate from .50% low to current high of 1.75% increase of 1.25% Chartered Banks Prime Rate from 2.70% to 3.95% increase of 1.25% Chartered Banks 5 year Mortgage Rates from 4.64% to 5.34% increase of .70%

Summary .. Pls read full details .. "The First Time Home Buyer Incentive is set to be available from September 2, 2019 ... " " .... shared equity mortgage with the Government of Canada."... "Incentive program facts The First Time Home Buyer Incentive will be 5% for the purchase of an existing home, while for the purchase of a newly constructed home, an incentive amount of 5% or 10% may be available. No on-going repayments are required, the incentive is not interest bearing, and the borrower can repay the incentive at any time without a pre-payment penalty. The government shares in the upside and downside of the change in the property value. The buyer must repay the incentive after 25 years, or if the property is sold. The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000. At the same time, a participant's insured mortgage and the incentive amount cannot be greater than four times the participant's qualified annual household income. Per the table below, for a family buying a $500,000 home, this program could save them as much as $286 per month .... "

"One change MPAC noted would help first-time homebuyers get a foothold in the housing market is reducing the stress test to 0.75% from 2%. Another one that’s been floated publicly is extending amortizations on insured mortgages to 30 years."