Before we get started, there were some new mortgage lending guidelines announced today. Here’s the Toronto Star article (with some quotes from friend of the team Shawn Zigelstein at Royal LePage), but I’m also going to point you to my friend Ara Mamourian’s blog, where he does a better job than I ever could at analyzing the impact of the decision. I agree with him – the qualification on a higher 4.64% rate means affordability goes down, which means the lower-priced homes will experience even higher demand.
Time will tell. I would have preferred to see a higher downpayment above a particular price point… which would target the main areas of concern (Toronto and Vancouver). But I’m NEVER opposed to guidelines that prevent buyers from getting in over their heads.
Rates this low will not continue forever – although it seems like not much will change in the next 3-6 months.
In today’s episode, there are quite a few solid picks. It might be one of the best lists from the past month or so.
Be sure to check out the most “colourful” home of the day on Coates, and there are some VERY good choices for townhouses and bungalows in the list, too. But be careful of one home that’s clearly shooting WAY too high with their asking price ($20k more than a home nearly 1,000 square feet larger).