Hi everyone!  Spring is here!!! Congratulations with the beginning

                                 of a warm season!

 

 

This year our spring looks very much as in the picture above. As soon as warm weather

shows up, here are the clouds full of snow, cold wind blowing, the  temperature goes

below  what we consider to be spring weather; people close car windows and switch on 

the heating again; pedestrians start walking very fast with their heads hidden in scarves…

 

What do we do when life doesn’t go the way we like or expect? I think we adjust

accordingly to the changes, otherwise it would be insane to fight with the weather or with

other things in our life that we cannot change. Here are some things that come to my

mind: Weather; Time; Our parents; God forces; This list can go on and on.

 

But what about the laws, rules and regulations? Theoretically we can change them, but

before we change them we have to obey. Again, to go against the rules and regulations is

insane. I am not going to talk about traffic, or political, or other rules and regulations, but

about the new changes in my field – Real Estate.

 

New Mortgage Rules Took Effect March 18, 2011

 

Three new rules:

 

1. Maximum mortgage amortization period is reduced to 30 years from

35 years.

 

What does this mean for home buyers?

The shorter the amortization, the bigger monthly mortgage payment will be.

 

How to deal with this? – To buy a less expensive home or to get a higher paying

job… Yes, I know… easy to say…

 

2. The maximum amount Canadians can borrow to refinance their

mortgage is lowered to 85 per cent from 90 per cent

 

This rule is for refinancing only. When  you already have a home and with years have

 built equity - the value of your property has increased and you also paid of some

portion of your mortgage- you  can refinance it, if you decide to. Some people

refinance to pay of debs with higher interest rates, others want to put money down for

an investment property and so on.

 

3. The government has withdrawn its insurance backing on lines of credit

secured on homes.

 

This means that CMHC- (government mortgage insurer) is no longer insuring Home

Equity Line of Credit.  This rule does not have too much of an impact on consumers.

 

These are all the changes.

 

Minimum down payment still remains 5%. You can buy even with 0% down

payment.  

 

 

How is the market?

 

Greater Toronto REALTORS®   reported:

 

4,337 transactions through the TorontoMLS®   system in January 2011.

6,266transactions through the TorontoMLS® system in February 2011.

9,262transactions through the TorontoMLS® system in March 2011.

The average selling price   for January 2011 sales was $427,037

The average selling price for   February 2011 transactions was $454,423

The average selling price for  March 2011 was $456,147

 

The strongest average annual  price growth was reported  for condominium

 apartments  and semi-detached houses, at  approximately seven per cent for  both

home types. 

We can easily see how Real Estate prices are going up. What else is new?

 

Thinking of buying or selling a home or an investment property? Call or email me, I

will help with great pleasure!

 

Strange houses

 

This house is reasonably priced, but Dear God, do not turn on the heat!

 

Thank You

THANK YOU for reading my blog. I hope that it is valuable to you.

I welcome your emails, phone calls and questions regarding anything 

that can be of your assistance.

 

PS. I am NEVER too busy to help you or any of your friends or family. Who is the next person 

you know that is thinking of buying, selling, or refinancing? Don't keep me a secret!