In recent years, it's been more challenging to get a mortgage than ever before. And the rules are only getting stricter. Under the new mortgage rules that Finance Minister Bill Morneau announced last week, first time home buyers will need to either save for a larger down payment or purchase a less expensive home than before.
With the possibility of an increase in interest rates on the horizon, the Canadian government has put these measures in place to protect first time Canadian home buyers from overstretching their budget to purchase their first home. With the prices increasing across the country, especially Toronto and Vancouver, the Canadian government has put these efforts in place in order to protect consumers from market fluctuations primarily due to the activity in these two major cities. To get approved, you'll now have to qualify for a mortgage at 4.64% to prove that you can handle an increase in interest rates.
The good news is that there are a lot of great options out there, especially in London, Ontario. When compared to the rest of the Canadian market, London real estate offers exceptional value and great investment opportunities. According to the Housing Market Outlook for London, Ontario, the average price of MLS sales fall within the range of $275,000 to $283,000 this year. London, Ontario is one of the largest cities in Canada as far as accessibility for first time home buyers, and if you’re looking to buy your first home, you can be sure that there’s going to be less competition from other buyers.
In fact, prices are expected to soften a little in the near future in response to this new mortgage legislation, meaning that you can get an affordable London home at an even cheaper price. This is ultimately added value that will help you build equity in your home sooner, which will help you grow your holdings.
If you're looking to get into the market, we are the perfect mortgages brokers to work with, especially now. We have extensive experience working with first time home buyers. We also have excellent connections and working relationships with a large range of lenders and a variety of credit options to ensure that you find the perfect lending arrangements to suit your needs and lifestyle, even with these new rules in place.
With the skills and dedication that we bring to the London, Ontario mortgage market, we look forward to serving even more first time home buyers. In our eyes, the government’s new mortgage rules simply mean that we get to let our expertise shine even more.
Get in touch with us to find out more.
Thanks for reading!
Mike and Mindy
Your London, Ontario Mortgage Brokers at Dominion Lending Centres - Forest City Funding FSCO# 10671