Realtors talk with Mortgage Broker Gary Bains

Recently there have been a few changes to the mortgage and lending rules in Canada. How will this affect the Vancouver Real Estate Market?

Jacob and Jacky, Realtors with TRG,  talk with Gary Bains, owner of Ronin Mortgage. He outlines a few changes to the lending industry and talks about how these changes may affect people buying and selling real estate. Firstly, when buying a rental property there will be a minimum down-payment of 20%, up from as low as 5% in previous years. This will likely affect buyers purchasing a second property as an investment. Investors will now have to save more funds before purchasing more real estate.

Secondly, often people borrow funds against their home by pulling equity from the value of their condo or house. In the past it was possible to withdraw up to 95% value of your home. Under the new regulations the maximum an individual with be allowed to withdraw when refinancing is 90%.

Lastly, when applying for a new mortgage, buyers must qualify for the posted fixed rate, even if they wish to take a variable mortgage rate. This will likely make it more difficult for buyers to qualify for they mortgage they want or need.

If you’re thinking about buying or selling real estate in Vancouver feel free to contact Jacob or Jacky to talk about what’s currently available within the building for sale.