11, 2015 "January home sales in Toronto and Vancouver could spike as people rush to get in before the 5 per cent down door closes," said Rob McLister, founder of ratespy.com, adding those markets are about to see a lot of condominiums selling for $499,999. Darren Calabrese/National Post files The federal government is changing the rules on residential real estate down paymentsbut givingconsumers a two months heads up and that should mean a stampede to beat the deadline. I think you will see some extreme activity insome markets, said Doug Porter, chief economist with Bank of Montreal, referring to the red hot Toronto and Vancouver markets. The new rules take effect Feb. 15, 2016. Ottawais upping the minimum down payment for government-backed loans from five per cent to 10 per cent on the portion of a home selling for more than $500,000, asale price that is fairly common in Toronto and Vancouver where the average transaction easily exceeds that amount. The mad dash scenario almost always plays itself out when mortgage rates rise as consumers who have locked in their rates rush to take advantage of the lower rate they have guaranteed.
The downside is that fixed rate mortgages typically have higher interest rates than adjustable rate mortgages. They have a helpful list of 9 steps to buying a home, which includes figuring out how much you can afford, knowing your rights, shopping for a loan, making an offer, getting a home inspection, and much more. Moving forward, the FSA under the Mortgage Market Review mar have stated there must be strict criteria on the repayment vehicle being used. This comes after several years of federal government scrutiny over the CMHC, with former Finance Minister Jim Flaherty musing publicly as far back as 2012 about privatizing the Crown corporation. 19 Main article: Mortgage industry of the United Kingdom The mortgage industry of the United Kingdom has traditionally been dominated by building societies, but from the 1970s the share of the new mortgage loans market held by building societies has declined substantially. The interest rate is the yearly rate charged by a lender to a borrower in order for the borrower to obtain a loan. In one variation, the bank will buy the house outright and then act as a landlord.