Thought you would enjoy this article from the Tuesday, March 6th edition of the Financial Post. Jason Fekete writes about the state of the Canadian economy and the housing market. A couple of things to note:
Possible changes to mortgage financing rules
Specifically speaking regarding the decrease in the amortization period to 25 years from 30 years.
One thing to keep in mind here, your Mortgage Agent may still have access to extended amortization periods as high as 40 years with certain lenders. A longer amortization period on your mortgage can certainly help improve your cash-flow; however, you should work with your Mortgage Agent to ensure that a longer amortization is right for your overall mortgage strategy.
Changes to the mortgage down payment, possibly increasing requirement of your downpayment from 5% to 10%
In reference to to the condo market, I do share some of the same concerns; however, if you are looking to buy a condo as your principal residence or an investment property – my advice would be to really look at location, location, location. Properties located in desirable areas with convenient transportation, schools, entertainment amenities and proper infrastructure will always help retain the value of your home purchase.
Hope you enjoy the read, and if you have any questions or comments about the article, please don’t hesitate to contact me.