Open House: The Real Estate & Mortgage Show- December 9, 2017
This week the team touches on the current housing market in Ottawa and who is affected by the new mortgage rules.
Frank Napolitano is joined by Paul Rushforth and host Steve Gregory on this week’s edition of The Real Estate & Mortgage Show discussing the new mortgage rules and the current market environment for buyers and sellers in Ottawa.
Paul discusses how Ottawa is currently experiencing a seller’s market, meaning there are more buyers on the market than inventory which is attributed largely to the new stress test rules.
Frank notes that many customers will still qualify under the new rules and many first time buyers have already been through the stress test that occurred last year. He reminds listeners that the new regulations starting on January 1, 2018 apply to conventional mortgage with 20% down payment or more.
Many Mortgage Brokers, including Frank's team, have already begun qualifying clients on the new rules as a precaution.
Paul notes that is it a great time for investment properties as there may be a drop in rental vacancy rates come the new year given that some clients won’t feel comfortable getting into a house or may not qualify and would therefore continue to rent.
Frank and the team discuss some of the challenges when it comes to renewing your mortgage under the new regulations. If your current institution knows that you may not qualify under the new rules, they may not offer you the best rate. On the heels of the latest Bank of Canada rate announcement in the past week there are potential increases in the variable rate market which may steer clients to the fixed mortgage products.
The team discusses the 2018 outlook for Ottawa which indicates continued strength in the real estate market.