Can You Afford to Move?
The most recent mortgage qualification changes, specifically the mortgage "stress test" implemented at the beginning of last year, continue to impact the type of home Canadians are eligible to purchase. Has it affected your moving plans?
Stress tests used to apply only to those who had a down payment of less than 20 percent; however, the updated rules now extend to anyone applying for any mortgage — whether a variable or a fixed mortgage — even if they have a 20 percent or greater down payment. The impact of the stress test, where applicants must prove they can still afford mortgage payments if rates were to increase, has been in many cases to reduce affordability. Because of this, some buyers who may previously have been considering a house may have found a condo to be a more affordable option, resulting in an increase in condo appeal — and therefore condo prices — in many cities.
While first-time buyers, empty nesters and older couples are often the first to appreciate the many conveniences of condominiums, it's important to recognize that from a financial perspective, not only is the up-front cost of a condo typically more affordable, the maintenance fees are more predictable — and therefore easier to budget for — in a condo versus a house.
If you're wondering how much your current condo is worth in today's market, you're invited to call today for your complimentary price evaluation, and to receive the latest market update for your specific area. It would be a pleasure to hear from you, whether you're ready to buy or sell now, or are just keeping an eye on the market for a possible future move, or are simply curious about how much units are selling for in your building!