2017 was a busy year! While a lot happened, here are the main takeaways I have from 2017:
1. A lot of first time buyers entered into the market, especially in the condo sector.
2. Attached properties saw the biggest increase in value (e.g. condos and townhomes) in most areas of the city.
3. Single family (houses) saw some small declines in values in most areas of the city. And some considerable declines in the higher price range (above $2M).
4. We continued to see “subject free” offers on both conventional and high ratio mortgage purchases which carries a risk. Some buyers were willing to take on this risk, others were not.
5. There were lots of competing offers on condos, first time buyer market.
6. We saw different rates for different scenarios. It was almost impossible to quote a rate without asking at least 3-4 questions. Not every situation is the same. Rates are affected by percentage of down payment, credit score, amortization period, how quickly you need an approval, rental or residence, purchase or refinance – OMG! Crazy crazy crazy!!!! You change one element of an application and you can have a totally different rate!
7. Refinances are getting increasingly difficult to get approved and are being scrutinized a lot more closely.
8. Cash is king. Lenders are looking for fallback positions in case the market declines. What other assets to clients have to fall back on? RRSPs, savings, TFSA’s – increasingly more important on applications, especially when asking for any kind of exception.
What does this mean for YOU in 2018? Call me or email me and I’ll give you a personalized look at what you can expect for your home purchase or mortgage in 2018.