With new mortgage rules taking effect on April 19th, 2010, homebuyers are now faced with the problem of coming up with more money for their down payment, among other changes being made.
What is to come after these rules take effect should be the rise of interest rates, and if inflation continues to rise in the next coming months we might be seeing interest rates rise earlier than expected.
Now the outcome of having the new mortgage rules in place and interest rates rising is the market cooling down.
Any chances of their being a housing bubble should dissipate however there may not be such record breaking months as seen last year.
What we have to consider is that with the labour market improving, people might be in a more financially stable position which would lead them to purchase a home despite the new rules and higher interest rates.
When looking at homes, do not stretch your budget to the max, try to leave a bit of room just in case you end up in a bidding war or for any additions you may want to make to the house in the future.
What you can expect to find in the coming week are tips you can do to help you throughout the time when interest rates rise and the new mortgage rules come into play.
Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca
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