Why change the mortgage rules? - Blog

Why change the mortgage rules? Image: Danilo Rizzuti / FreeDigitalPhotos.net How do you characterize our current real estate market? Lots of buyers, not enough homes. Homes are selling at over and above the asking price as demand pushes excited home buyers, nervous at the thought of losing out on a home, to bid full asking price sometimes without conditions. While active listings are down from last year, we are already ahead of record breaking 2009 in units sold, so it's with this in mind that I welcome the changes introduced by Finance Minister Jim Flaherty in the mortgage industry. Image: Rasmus Thomsen / FreeDigitalPhotos.net Changes that will hopefully curb the excitement and ensure that home buyers are not over extending themselves in their quest to find the right home. Would be purchasers will now have to qualify at the 5 year Fixed rate, even if they choose a variable rate, as there is a genuine concern that some borrowers could struggle with their monthly payment, if and when interest rates rise. Twitter @ready2move Posted by Szabolcs Pall on March 2, 2010 Tags: Buyer Canada Consumers Downpayment Economy Finance Minister Housing Market Industry Investment Jim Flaherty Listings Market MLS Money Mortgage Ottawa Pall ready2move Real Estate Sales Szabolcs

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