Khawar The Realtor
80 Corporate Dr #210, Scarborough, ON M1H 3G5 M1H 3E9 Toronto, ON, Canada

Beautiful 2 Story, 5 level split home in Desirable markham & Sheppard area , More info... Call 416 688 6000

Here's How Long It Will Take To Sell A Home In These Canadian Markets

Sold almost in 30 Days ...

Canada’s mortgage stress tests just got a little easier .... The interest rate used in Canada’s mortgage stress tests has fallen for the first time since 2016, making it slightly easier to become a homeowner. The mortgage qualifying rate dropped to 5.19 per cent from 5.34 per cent, where it had been locked since May of 2018, according to new figures from the Bank of Canada. The rate is derived from the most frequently occurring five-year, fixed posted rates at Canada’s Big S...ix banks. (Market rates are much lower, and some discount lenders offer five-year fixed rates as low as 2.47 per cent.) The qualifying rate had increased several times during 2017 and 2018 as the Bank of Canada raised its key interest rate, and as bond yields head higher. But there’s been a notable shift in lending conditions as many central banks across the globe look to ease policies. Moreover, Canada’s five-year bond yield, which influences the direction of five-year fixed-rate mortgages, has tumbled this year. As a result, those mortgage rates have plunged roughly 70 basis points, according to a recent research note from BMO Nesbitt Burns. The stress tests are used to ensure homeowners and prospective buyers could continue to afford their mortgage payments at higher interest rates, and apply only to federally regulated lenders. The Department of Finance first imposed a stress test on insured buyers, or those who typically make a down payment of less than 20 per cent of the home’s purchase price, starting in the fall of 2016. Canada’s banking regulator followed suit with a similar test on uninsured buyers, which went into effect in 2018. The second test is widely credited as one of the factors that has weighed on resale activity in Canada’s real estate market. The new qualifying rate will have a tangible impact on a home buyer’s purchasing power. For someone making a 20-per-cent down payment, and who earns $50,000 a year, the lower rate will allow them to afford a home that is roughly $4,000 more expensive, according to calculations from RateSpy.com. For those earning $100,000 a year, with the same down payment, they can buy a home about $8,300 pricier. (RateSpy assumes no other debts and a 30-year amortization.) Curtsey: The Globe and mail.

Starting July 1st 2020, CMHC is making it more difficult for Canadians to buy property. If you have a down payment thats less than 20%. What does change in GDS (gross debt service ratio) and TDS (total debt service ratio) Ratios mean: *Currently you can use up to 44% of your income to service overall debt payments. This is being changed to 42%. * Currently you can use 39% of your income to service a mortgage, and this is being reduced to 35%.... What does this mean for you? This means that buying power has been reduced by approxiamately 10%. Prior to July 1st a buyer who qualifies for $500,000 as a new first mortgage can now only qualify for $445,000 under these new rules. Remember, this is ONLY for purchases that are less then 20% (Owner occupied and second homes) Another change is the minimum credit requirement to 680, which is up from 600. These changes are drastic and its important for us all to know about them as it directly affects all looking to buy real estate . Thanks *Copied

Thanks.. Homelife Galaxy for the recognition

It was not possible without all your Love and Support... thank you all

With the Support of my Clients, Family and Friend's good wishes, I'm able to Achieve this award today ... Im really thankful to everyone for being there with me on every step of the way ... thank you all