Kelowna Real Estate: New Mortgage Rules for 2018
It was just recently announced that new mortgage rules will be coming into effect starting January 1st, 2018. Many of our Kelowna homebuyers have been asking “How will the new mortgage rules for 2018 affect me?” In October, the Office of the Superintendent of Financial Institutions (OSFI) released its new guidelines called B-20. This was created to establish new guidelines which included the stress test.
If you have been trying to decide if this is the right time to buy or sell, this change in mortgage regulations could be a good signal that the time is right now. – John Antle of John Antle Mortgages
Why the sudden change to the mortgage rules?
Why the sudden change?
Over the last 10 years, Kelowna real estate has grown substantially. This is a great sign when all other variables grow at the same rate. What we do not want to see is the price of homes increasing at a rapid rate and causing chaos in the Kelowna housing market. Simply what the government is trying to do is keep home prices at an affordable rate while keeping real estate supply and demand in check.
What can we expect to see for the Kelowna real estate market in 2018?
It’s hard to predict what the Kelowna real estate market will do with the new mortgage rules taking place in
What will the Kelowna real estate market do?
January of 2018. The OSFI has announced that all homebuyers interested in taking out a mortgage for Kelowna real estate will have to qualify for a mortgage that is 2% points higher than what they are currently applying for. This only applies to homebuyers who do not have a downpayment of 20% or higher and do not require mortgage insurance. We expect that the housing market will continue to be steady we will just see an increase in a different part of the market. For example, people looking to purchase a $500,000 home may now be looking at a smaller home or condominium.
With the new mortgage rules coming into play in just over 2 weeks, it is important to work with a Kelowna real estate team that understands the market. A Kelowna real estate team that knows the ins and outs of the market is Vrecko Real Estate Group. Our dedicated team of real estate professionals is knowledgeable in the Kelowna real estate market and can assist you with your next Kelowna home purchase. Call 1-778-760-2860 today!
