vaughan festival condo.The down payment of the house price over 500000 Canadian dollars is 10%. Canada’s new rules to tighten home loans came into effect today, raising the down payment of C $500000 to C $1 million from C $5 to C $1 million for mortgage loans.Please Visit: vaughan festival condo to Get Your VVIP Registration Today!
For properties under C $500000, the minimum down payment is still 5%. For properties over C $1 million, the down payment is still 20%. This is the first action taken by the Liberal government against Canada’s hot housing market since it came to power in November last year.
But critics say the new mortgage rules are only political moves taken by the Liberal government and have little impact on the national housing market, because there are many factors contributing to the rise in house prices. such as low interest rates, speculators, money from overseas buyers, etc., the increase in the down payment is of little significance in controlling the booming real estate market. Real estate agents believe that the new rules will mainly put pressure on first-time buyers, especially in high-priced markets such as Vancouver and Toronto.
The Canadian Bankers Association believes that the increase in the down payment, coupled with the reduction of the maximum period for mortgage repayment by the federal government to 25 years in July 2012, will make it more difficult for some home buyers to obtain mortgages, so they will have to postpone their purchase plans or switch to cheaper houses.
The current historical data show that the period of decline in house prices tends to last more than 10 years before they pick up again. This is not a problem for young people, who can wait for house prices to rise before selling their homes, but for older people it is a luxury.