m city condos 5.No real estate speculation in Canada?At a time when the COVID-19 epidemic has pushed the Canadian economy into recession,the Canadian Mortgage and Housing Corporation is worried that unemployed home buyers will no longer be able to afford their mortgages and that house prices will fall,posing a serious threat to the health of the Canadian real estate market.As a result,it was decided that stricter mortgage insurance standards would be implemented from July 1.Please Visit:m city condos 5 to Get Your VVIP Registration Today!
The Canadian Mortgage and Housing Corporation said the move was to protect home buyers,reduce risks for the government and taxpayers,enable the housing market to develop steadily,and prevent excessive demand from causing prices to rise unsustainably.
The new standard stipulates that home loan applicants must have a credit rating of 680 points to be eligible for mortgage insurance,an increase of 80 points from the original 600 points.In addition,the Canadian Mortgage and Housing Corporation also reduced the allowable debt-to-annual income ratio to 35%from the current 39%.
COVID-19 epidemic hit the economy,real estate buyers just began to resume the desire to buy houses,but at this time introduced strict mortgage measures,real estate and loan brokers believe that outdated.But mortgage brokers say there will be a rush to buy every time a new mortgage tightening measure is introduced.
And the house price statistics are not the same as Canadian mortgage companies are worried about.Although the housing market is not as active as it used to be during the outbreak,prices are still rising as demand falls and the number of listed houses decreases.
Since March,house prices across the country have risen 1.3%in April,according to real estate statistics in Toronto and Vancouver.
Monthly house prices increased by 3%and 2.9%respectively over the same period last year.
House prices in Windsor are even more.It is 14.91%higher than in May last year.
Some analysts pointed out that according to the current loan regulations,families with an annual income of C$100000 and a down payment of 10%can make a loan to buy a house worth$524980;after the implementation of the new measures on July 1st,you can only buy a house worth C$462860,with a 12%reduction in purchasing power.
It is difficult to say whether the strict policies of Canadian mortgage and housing companies can bring about the health of the market,but they must have reduced their own risks and reduced the paying power of potential home buyers.At this point,mortgage brokers are right to worry that every time a new mortgage tightening measure is introduced,there will be a rush to buy.Potential home buyers will be forced to buy cheaper houses because of the loan policy,resulting in low-price gunmen.
In a sense,low house prices like Windsor are more likely to lead to panic buying than in other parts of Ontario.Of course,in addition to the rigid demand for buyers squeezed by prices,investors like to look for price depressions.Of course,investors are also willing to take out loans to buy houses and just speculate in real estate.This is what the country should pay attention to at this time.After the epidemic,financial leverage should be strictly controlled,rather than leveraging to stimulate the housing market.