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Author: Bianca Marijan

Providing superior customer service to real estate buyers, sellers and investors in Hamilton and the surrounding area since 1988. First time home buyers, upsizing, downsizing, condos, residential, commercial, property redevelopment & investment properties.

Upcoming CMHC Mortgage Changes Could Reduce Buying Power

CMHC mortgage insurance Canada real estate mortgage insurance eligibility

Upcoming CMHC Mortgage Changes Could Reduce Buying Power

The CMHC(Canadian Mortgage and Housing Corporation) announced changes to the coverage criteria for insured mortgages that could make it more difficult to qualify for a mortgage in Canada.
As the largest issuer of mortgage default insurance protecting lenders if a borrower cannot make their payments, they’ve adjusted the debt service ratios and credit score requirements needed to qualify for a mortgage with a down payment of less than 20%. What does this mean for aspiring home buyers?

The main changes to CMHC lending rules

The main changes around the lending requirements for CMHC-insured mortgages:
• GDS (Gross Debt Service) ratios must be under 35 – previously 39
• TDS (Total Debt Service) ratios must be under 42 – previously 44
• Credit score of the borrower must be at least 680 – previously 620
• Borrowed down payments are no longer allowed
These changes will go into effect on July 1st, 2020.

The changes to the CMHC lending rules are being implemented to limit the number of high-risk mortgages during the uncertainty of COVID-19.

Interestingly, what didn’t get changed was the previously-discussed increase of the minimum down payment requirement from 5% to 10%.

Debt Service Ratios

Debt Service Ratios help lenders determine how much you can afford to borrow by comparing your income to the amount of debt and cost of housing expenses.
To decrease your Debt Service Ratios you either need to increase your income or decrease your debt.

Credit Score Changes

If you don’t have a high enough credit score it could mean that you’re unable to take out an insured mortgage. You can find out what your credit score is for free on Borrowell or Credit Karma.

Changes to Down Payments

It used to be that you could borrow money for a mortgage down payment within certain rules. As of July 1st, borrowing your down payment will disqualify you from CMHC coverage.
You can still use your savings, investments, or gifts from family as your down payment.

Impact on Home Buyers

The upcoming changes could significantly reduce buying power for buyers who are unable to save 20% for a down payment.
According to the Ratehub.ca mortgage calculator, using the current mortgage qualifying rate of 4.94% and GDS limit of 39, a family with an annual income of $100,000 and a 10% down payment would have qualified for a home valued at $524,980*.

Under the new GDS limit of 35, the same household can now only afford a home of $462,860. This is a decrease in buying power of almost 12%, all due to the change in the GDS limit.

Private Insurance Providers

CMHC is not the only issuer of mortgage default insurance, you can also go the private insurance company route because private insurers don’t have the same obligation to hold borrowers to the same requirements as CMHC.

Borrowers may still be able to take out an insured mortgage with coverage if the private insurance companies don’t also change their eligibility criteria, however, they may have a higher default premium.

Questions about buying or getting a mortgage? Send me a message.

Elegant Detached 2 Storey Home For Sale in Ancaster Meadowlands

268 RAYMOND Road MLS H4071727 two storey detached for sale ancaster meadowlands, ancaster homes for sale, homes for sale in ancaster Ontario, homes for sale in ancaster ont, houses for sale in ancaster ontario, ancaster homes for sale by owner, houses for sale ancaster ont, homes for sale in ancaster ontario canada, ancaster luxury homes for sale, property for sale in ancaster, homes for sale in ancaster meadowlands, houses for sale in ancaster meadowlands, homes for sale ancaster ont, ancaster housing market, mls ancaster ont, mls ancaster Ontario, mls listings ancaster, mls ancaster, mls listings ancaster ontario Canada, new homes ancaster, ancaster new homes for sale, new homes in Ancaster, Rosehaven Homes

Elegant Detached 2 Storey Home For Sale in Ancaster Meadowlands

Three bedroom, three bath detached two storey home for sale in the quiet Ancaster Meadowlands.

2795 sq. ft unique Rosehaven Treasure model home, loaded to the max on a 103.48 ft lot. Stunning designer kitchen, a subtle hue of cabinetry, quartz countertops and sunny dinette. Fully finished lower level offers an ideal 600 sq ft in-law suite with cool kitchenette, dining area, huge family room, 3 piece bath.

Palladian windows & gas fireplace in the sunny, airy family room. Pot lights, art nooks, built-in seating, main floor laundry with loads of storage, fully equipped storage room, fruit cellar, 3.5 baths including ensuite. This home offers a special, understated elegance throughout.

Click here for photos

Click here for a virtual tour

268 RAYMOND Road
Ancaster, Ontario L9K0H8
MLS® Number: H4071727

Contact me to book a viewing

Bianca Marijan
City Brokerage
Email: [email protected]
Phone: 289-389-2323
BestHamiltonRealEstate.com

Hamilton Real Estate Market Update March 15-21st 2020

March 2020 Hamilton real estate market, Hamilton house prices, Hamilton new listings, Hamilton Days on Market, Burlington real estate, Haldimand real estate, Niagara real estate, Hamilton house prices, hamilton condo prices, hamilton townhouse prices

REALTORS® Association Of Hamilton-Burlington Real Estate Market Update

Here are the latest real estate statistics for the Hamilton, Burlington, Haldimand, and Niagara North area.

Questions about buying, selling, or investing in Hamilton real estate? Looking for a Hamilton real estate agent? Send me a message.

Date range:  Mar 15 2020 12:00AM to Mar 21 2020 11:59PM

Hamilton Residential New Listings:  229
Hamilton Residential Sold Listings:  151
Hamilton Residential Average sale price:  $604,851.00
Hamilton Commercial New Listings: 27
Hamilton Commercial Sold Listings: 5

Burlington Residential New Listings:  69
Burlington Residential Sold Listings:  40
Burlington Residential Average sale price:  $884,205.00
Burlington Commercial New Listings 4
Burlington Commercial Sold Listings 0

Haldimand Residential New Listings:  24
Haldimand Residential Sold Listings:  12
Haldimand Residential Average sale price:  $526,457.00
Haldimand Commercial New Listings 0
Haldimand Commercial Sold Listings 0

Niagara North Residential New Listings:  19
Niagara North Residential Sold Listings:  14
Niagara North Residential Average sale price:  $615,134.00
Niagara North Commercial New Listings 1
Niagara North Commercial Sold Listings 0

Remarks:

1) All data are from RAHB Matrix including non member inter-board listings.
2) Hamilton area:  Region = Hamilton
3) Burlington area:  Municipality = Burlington
4) Haldimand area:  Region = Haldimand County (including Canborough/Dunn/Moulton/Sherbrooke)
5) Niagara North area:  Municipality = Grimsby and West Lincoln (including Smithville)
6) Sale price >= CAD $40,000

CITY BROKERAGE REAL ESTATE MARKET UPDATE March 15 21st 2020  350x350 - Hamilton Real Estate Market Update March 15-21st 2020

 

Hamilton Real Estate Market Update March 8-14th 2020

March 2020 Hamilton real estate market, Hamilton house prices, Hamilton new listings, Hamilton Days on Market, Burlington real estate, Haldimand real estate, Niagara real estate, Hamilton house prices, hamilton condo prices, hamilton townhouse prices

REALTORS® Association Of Hamilton-Burlington Real Estate Market Update

Here are the latest real estate statistics for the Hamilton, Burlington, Haldimand, and Niagara North area.

Questions about buying, selling, or investing in Hamilton real estate? Looking for a Hamilton real estate agent? Send me a message.

Date range: Mar 8 2020 12:00AM to Mar 14 2020 11:59PM

Hamilton Residential New Listings: 258
Hamilton Residential Sold Listings: 184
Hamilton Residential Average sale price: $596,295.00
Hamilton Commercial New Listings 42
Hamilton Commercial Sold Listings 9

Burlington Residential New Listings: 77
Burlington Residential Sold Listings: 61
Burlington Residential Average sale price: $860,460.00
Burlington Commercial New Listings 4
Burlington Commercial Sold Listings 1

Haldimand Residential New Listings: 27
Haldimand Residential Sold Listings: 12
Haldimand Residential Average sale price: $451,440.00
Haldimand Commercial New Listings 1
Haldimand Commercial Sold Listings 2

Niagara North Residential New Listings: 24
Niagara North Residential Sold Listings: 15
Niagara North Residential Average sale price: $655,833.00
Niagara North Commercial New Listings 0
Niagara North Commercial Sold Listings 0

Remarks:

1) All data are from RAHB Matrix including non-member inter-board listings.
2) Hamilton area: Region = Hamilton3) Burlington area: Municipality = Burlington
4) Haldimand area: Region = Haldimand County (including Canborough/Dunn/Moulton/Sherbrooke)
5) Niagara North area: Municipality = Grimsby and West Lincoln (including Smithville)
6) Sale price >= CAD $40,000

CITY BROKERAGE REAL ESTATE MARKET UPDATE March 8 14 2020  - Hamilton Real Estate Market Update March 8-14th 2020

 

Hamilton Real Estate Market February 2020

Hamilton real estate market, JFebruary 2020, Hamilton house prices, Hamilton new listings, Hamilton Days on Market, Burlington real estate, Haldimand real estate, Niagara real estate, Hamilton house prices, hamilton condo prices, hamilton townhouse prices

Hamilton Real Estate Market February 2020

The Hamilton real estate market in February was hot, hot, hot!

998 homes were sold in the Hamilton-Burlington area last month, that’s 30 per cent more than January and 25.5 per cent more than February 2019!

We are definitely in a sellers’ market right now, with a high demand for properties under $600k.

The average price of a home in Hamilton last month was $588,817, up from $518,259 in February 2019.

Townhouse prices increased by 19.4 per cent since February last year to $584,944.

The average sale price of condos in Hamilton is $346,250, making it an affordable option for first-time buyers or anyone looking to downsize. They are also selling more slowly than detached or semi-detached/townhomes.

Properties are selling nearly 19% faster compared to last year with 34.1 average days on market compared to 42 in February 2019.

The average sale price in West Hamilton was $562,850 compared to $511,842 last year.

Hamilton East is $454,904, up 18.49 per cent since last year.

Central Hamilton usually is the most affordable, but it had an average sale price of $464,864, a higher average sale price than east Hamilton for the first time in a while.

Hamilton Mountain was $542,382 last month, up 9.64% since last year.

Questions about buying, selling, or investing in Hamilton real estate? Contact me.

 

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