Jeff_Stern_Realty_Rev.pngJeff-Stern-Realty-Winnipeg-Manitoba.png

Need expert advice? Call Now - 204.946.5333

Tag List

Winnipeg Real Estate (19)
Gen-x (1)
Working for friends (1)
Life Insurance (2)
Real Estate Industry (12)
Buying a home, Fear, Nervous, Patience, Real Estate Help (2)
real estate ads (1)
Last will and testament (1)
Technology (1)
Manitoba Condominium (1)
Pets (3)
Pride in work (1)
Buyers (2)
Retirement (1)
Selling A Home (14)
Market Forecast (2)
Landlord (2)
Pet Loss (1)
Choosing a Lawyer (1)
Home Security (1)
agent resources (1)
Relocation (1)
Real Estate Tips (8)
Estate planning (2)
Manitoba Real Estate (2)
Advertising (2)
Market (2)
Manitoba Condos (2)
United Airlines (1)
Open House (1)
Needs (1)
Will (2)
Mortgage (3)
Helping People (2)
Real Estate Market (4)
Mortgage approval (1)
Prices (1)
Real Estate FAQs (3)
CREA (1)
Ethics (1)
Not so funny experiences (1)
Real Estate Advertising (1)
Professional Behaviour (1)
Nervous (1)
Excellent Service (1)
Being Helpful (1)
Capital Gains (2)
Vegetarian Lifestyle (1)
Property Maintenance (1)
Buy (2)
Estate (1)
shelter (1)
Cost of services (1)
Property Value (1)
Manitoba (1)
Realtor (8)
Selling (5)
Aging (1)
Homes Winnipeg (1)
Funny experiences (1)
Real Estate Law (1)
client resources (1)
winnipeg real estat (1)
Socializing (1)
Recovery (1)
Financial planning (1)
Real Estate Photos (1)
Public Shaming (1)
Misrepresentation (1)
Insurance (1)
Environmentally responsible (1)
Death (2)
personal (1)
News (1)
marketing (4)
Mental Illness (1)
Responsible Pet Ownership (1)
real estate agent winnipeg (2)
Real Estate Winnipeg (20)
Condominium (2)
winnipeg house for sale (1)
Customer care (5)
Commission (1)
Winnipeg Realtors (17)
Consumer Advocacy (1)
Home Automation (1)
Real Estate Appraisal (1)
Customer Service (17)
Customer Care (1)
Jeff Stern (2)
Service (2)
negotiation (1)
Pet Care (3)
Wills and Estates (1)
Relocating (1)
buyer representation (2)
Closing costs (1)
Pet adoption (2)
Income Tax (1)
Homestead (1)
Sell (3)
Hiring a Lawyer (1)
Private selling (2)
Representing Friends (1)
Life Lease (1)
Renting (1)
Divorce (1)
Cat rescue (1)
Impaired Drivers (1)
Fiduciary duty (1)
Stress test (1)
Agents (2)
Buying A Home (19)
Financing (1)
Real Estate Business (6)
Womens Shelter (1)
FAQ (2)
Volunteering (1)
Jeff Stern REALTOR (2)
Animal Rescue (3)
Aging in place (1)
Rehab (1)
Online Reviews (1)
Ad Writing (1)
Manitoba Life Leases (1)
Downsizing (1)
Real Estate (39)
Lawsuit (1)
Lawyer (2)
Artificial Intelligence (1)
Alzheimer's (1)
Customer Satisfaction (5)
Homelessness (1)
Impaired Driving (1)
Real Estate Mortgage Insurance (1)
mortgage pre-approval (1)
Mortgage Insurance (1)
Fear (1)
Cats (2)
Pre-approved Mortgage (2)
Assisted living (1)
Winnipeg Life Lease (2)
Hybrid (1)
Wants (1)
PR (1)
Integrity (1)
Market Evaluation (2)
executor (1)
For sale by owner (1)
CMA (1)
Tesla (1)
Property Pictures (1)
winnipeg condo (1)
condominiums (1)
Sellers (2)
Maple Leaf Foods (1)
Renting a home (2)
professionalism (4)
Manitoba Securities Commission,Manitoba Real Estate Association, Real Estate Agent, Real Estate Licence (1)
FAQs (3)
Condos (3)
Fees (1)
gift letter (1)
Alcohol Addiction (1)
Comparable Market Analysis (1)
Winnipeg properties (6)
Smart Home (1)
Responsible Pet Care (1)
Deposit (2)
home inspection (5)
co-signer (1)
Problem Solving (1)
Real Estate Negotating (2)
Advice (1)
philanthropy (2)
Effective Copy (1)
Offer to Purchase (1)
Homestead Rights (1)
Fsbo (3)
Mortgage Life Insurance (1)
(5)
Social Media (1)
Risk (1)
Property Features (1)
winnipeg real estate agent (21)
Legal Pitfalls (2)
Dementia (1)
Home features (2)
Hoarding (1)
Due diligence (2)
Helpful Service (2)
Anti-Social (1)
Re-marriage (1)
Listening (1)
seniors (3)
real estate marketing (2)
buy house winnipeg (1)
christmas (1)
Reviews (1)
Bank approval (1)
Real Estate Help (1)
Personal Care Home (1)
Market Report (1)
investing (1)
Security (1)
Patience (1)
Listing Photos (1)
Internet Security (1)
Drunk Driving (1)
Value for your money (1)
Choosing a home inspector (1)
Real estate advice (1)
Appraisal (1)
Animal care (3)
mentorship (1)
Customer Reviews (1)
Friendships (1)
Health (1)
Comparative Market Analysis (1)
Bereavement (1)
Bequests (2)
Vegan (1)
Residential Tenancies (2)
Public Relations (1)
Buying (5)
Relationships (1)
A day in the life of a realtor (1)
Addictions (2)
Education (1)
Private sales (1)
Winnipeg (9)
Tenants (2)
winnipeg realtor (3)
executrix (1)
fraud (1)
Blended families (1)
Customer expectation (3)
realtor winnipeg (3)
Media (1)
Inheritance (2)
Markets (3)
New mortgage rules (1)

New 2018 Mortgage Rules Will Make it Harder for Homeowners to Sell

Jan 19, 2018

pexels-photo-259086.jpeg


As of January 1st, the Government of Canada imposed new banking rules that will impact homeowners’ ability to sell their homes.  

The major change comes as an attempt to cool the overly hot housing markets of places like Toronto and Vancouver, where prices have been soaring to dangerous heights. The mortgage rule change will have a major impact on these markets, driving prices back down to sustainable numbers. It will hurt for a while, but the stabilization will be good for them in the long run. In the meantime, the blanket-ruling will affect all markets across Canada, including the much more stable Winnipeg housing market where prices have been as steady as the calm prairie horizon.


What the Rule Change Is:

For the uninitiated, the big change goes something like this: every person acquiring a mortgage through a bank in Canada must qualify for that mortgage at the stress test rate currently as of writing this post at 4.99% interest rate. It doesn’t matter if your actual mortgage rate ends up being 2.95%, you have to be able to afford the payments at 4.99% or you don’t get the mortgage. It doesn’t matter if you’re paying 20% down or 90% down, it doesn’t matter if you’re getting the house at half its value. If you can’t swing payments at a 4.99% rate, you’re not getting the loan.

Not from a bank anyway.


 

How It Will Affect Sellers:

No one can really say with any degree of accuracy what the full cause and effect is going to be, however, I do fully expect a shift in how buyers will be buying.

With a requirement to qualify for payments at a higher interest rate, what people can afford for a purchase price will shrink. That means buyers will be looking for homes at a lower price point than they would have before. Some estimate a spending reduction of 17% less which, on a $250,000 home, means a reduced house hunting budget of 207,500 – that’s a $42,500 decrease!


Here’s how that rolls out for sellers:


  • As people have less buying power, commanding higher prices may become more difficult. It may take longer to sell, and to find that buyer who qualifies at the new rate.  


  • Buyers are not used to this new ruling. That means they may not realize they should be shopping at a much lower price than they have been. 

    If they’ve not gone through the due diligence of becoming pre-approved (as many foolishly choose to avoid), it puts the seller at risk of wasting time and losing other qualified buyers while deals with unqualified buyers fall through. (By the way, the solution to this is, as a buyer, to get pre-approved, and as a seller, to make sure people are preapproved before they step foot in your home for a showing. Seriously. This is a prerequisite I make on behalf of my clients, and it saves them LOADS of stress and time.)

 

Will Prices Go Down in Winnipeg?

With this ruling’s enforced limitation on buying power, it’s possible that prices won’t just be driven down in Toronto and Vancouver, but also in Winnipeg.

At this point though, in January of 2018, it’s too soon to tell. Our market has been fairly steady and balanced, and historically Aswell, so I don’t personally think we’ll see a drop in prices as much as we’ll see a few more deals falling through as people adjust. I will continue to advise all of my clients to require any buyers who wish to see their home need to be preapproved – this guards against financing falling through, and guards my seller clients against wasted time, something I think will happen a little more with this new ruling.


____________________________


PreApprovalChecklist_cover_image.jpg 


    Pssst. I made this for you. 

    Protect yourself from a financial fall-through. 

    (Trust me, I've seen too many of them, and I 
    think we're about to see more...) 


    My gift to you. 

    Click here to get your complimentary copy. 

 



____________________________


In Winnipeg, the spring market starts to wake from hibernation right after our local Festival Du Voyageur. People start pumping their way out of snowbanks, stomp their frozen feet awake, and begin looking at homes again.


Will you be ready? 


.





Leave a Reply

(Your email will not be publicly displayed.)



Captcha Code

Click the image to see another captcha.