Date Posted: October 22, 2018
Jennifer Anderson from Advanced Mortgage Investment Corporation joins Steve Gregory, Frank Napolitano, and Paul Rushforth discussing the latest in Mortgages and Real Estate.
The next announcement from the Bank of Canada will be on Wednesday with the outlook leaning towards another increase. When variable rates increase by 0.25%, on average, payments will increase by about $21 for every $100,000 of mortgage. As rates increase, as does the qualifying requirements in respect to the stress test which requires borrowers to qualify at either the mortgage qualifying rate for high ratio mortgages or contract rate +2%.
When it comes to the effects of the stress test, both the real estate and mortgage industries have been very vocal about the challenges for the middle-class population which include entering the housing market as a buyer. This is turn had also impacted the rental markets as rents continue to increase with the low-inventory levels. With these higher rents, it makes it challenging to save for a down payment for a home.
The Ottawa real estate market is still very strong and now is still a great time if you a looking to sell your home. As cottage season comes to an end and most are now closed, selling a 2 or 3 season cottage will likely pick back up again in the spring. If you are selling during the winter, remember to showcase it at its prime in the summer and keep access to the property clear for showings.
One of the sister companies to Mortgage Brokers Ottawa is Advanced Mortgage Investment Corporation (AMIC). AMIC offers first and second mortgages primarily in the Ottawa to individuals who do not qualify for one reason or another. This is a short term solution for a borrower which gives them time and space to get their financials in orders and return back to the ‘A’ lenders. These mortgages are open and can be repaid with 30 days notice and are 1 year terms.