All in Toronto
A mortgage regulatory change that hasn’t been talked about much in the media but it will likely impact Toronto, Vancouver, Victoria, and Hamilton, especially if condo prices continue to climb. It asks lenders to loan less in markets with high property value risk.
In the past year detached home prices have drifted downward in Toronto and Vancouver while condo prices have surged, so the price gap between the two has narrowed. At the end of this article we explain our belief that now may be the best time to trade in your condo or townhome for a detached home.
The consensus seems to be that 2018 will experience a drop in detached home prices while condo prices rise.
The new mortgage stress test which came into effect January 1st makes it more difficult for Canadians to qualify for a mortgage, and the combination of rising rates and the new stress tests could force home buyers to come up with significantly higher down payments than 2017.
