Changes to the Canadian mortgage market are coming in 2010

2009 is nearly behind us, and like the rest of the world the real estate industry continues to change and evolve. A good REALTOR® needs to stay on top of current events, economic conditions, and changes to our industry.

With many economists concerned about the sharp rise in house prices over the last year (in spite of a soft economy), the federal government is now looking to pressure banks to tighten up their lending parameters.

Keep an eye out for:
-Banks shortening the amortization terms of new mortgages (cutting back from a maximum of 35 years to 25 years)
-Banks increasing mortgage rates (from their current record low levels)
-Insurers like CMHC increasing the amount of money required for a down-payment (from 5% to 10%)


All of these things are being considered to avoid a repeat of the subprime mortgage crash of August 2008; but any of these changes will also slow the amount of first-time buyers entering the market—which in turn will slow the entire real estate industry.

If you’re planning on moving in 2010, use a REALTOR® that understands the evolving market; call me, I can help.  Contact Derek Dunphy, Sales Representative, Johnson Associates Real Estate Ltd., Brokerage; through my website:
Derek Dunphy's Georgetown Real Estate Website