Im sure you've seen the news all over the place. The bank of Canada has yet again reduced it's over night rate by 50 basis points down to 3.25%. This is the fifth consecutive cut by the Bank of Canada since June.
This rate cut comes at a time where many other changes are taking effect. Another significant update is the increase in the insured mortgage cap from $1 million to $1.25 million. This change allows more buyers in high-cost markets to qualify for insured mortgages. Additionally, 30-year amortization periods are making a comeback for certain mortgage products, offering buyers more manageable monthly payments, albeit with higher overall interest costs.
Furthermore, new stress test rules are being introduced to better align with current market conditions. Meaning you will no longer need to go through the stress test when renewing your mortgage. That will give homeowners flexibility to shop different lenders even when renewing their mortgages.
With these adjustments, more buyers may find themselves qualifying for mortgages they were previously excluded from.
As we head into December, these changes represent a pivotal moment for the real estate market in Ontario. Whether you're a buyer, seller, or investor, staying informed and working with knowledgeable professionals can make all the difference in navigating this evolving landscape. With professionalism and a commitment to your success, we at Unna Real Estate Group are here to help you seize opportunities and overcome challenges in this dynamic market.
