Spring market is it here yet?

The spring market is almost here and the prices are hedging up. Mortgage rates are staying low but the experts give us some figures to crunch.....

The new rules as of Friday will make the maximum payback period 30 years — resulting in somewhat higher regular payments than with the 35-year amortization that has been the choice of about 30 per cent of home buyers.

"The rule changes will increase the monthly payment on a $300,000 mortgage at four per cent interest by $105 — but will also reduce total interest paid by $42,288 over the life of a mortgage because it's repaid five years sooner.
Dropping the amortization to 30 years will cut buyers' maximum possible purchase price by six to seven per cent. That means someone who qualifies for a $300,000 mortgage could afford a home that's about $18,000 $21,000 less expensive."
“When you reduce amortization, it increases your mortgage payment for the same purchase price, so if you have people near the edge of affordability, forcing them into a shorter amortization means they won't qualify for as much house,” says Robert McLister, a mortgage planner and editor of the Canadian Mortgage Trends website.
“It means that you'll have to find a cheaper house or you'll have to move a little further out of the city.” McLister says first-time owners should re-examine their monthly cash flow before deciding whether now is the time to enter the market.


As the market bounces back.. can you save as fast as the market moves up. Like most markets pre spring fever... there is a notable shortage of listings on the open market. Supply and demand says the lower the supply the higher the demand .. and prices.


THIS IS THE TIME YOU NEED TRUSTED EXPERIENCE AND ADVICE. I have had clients call me and say.. well I went on the Internet and I can borrow 400,000. BUT at what cost....costs.. hidden, added to or deferred. With CMHC insurance fees tacked onto your mortgage and higher rates on cash back mortgages even with annual 5 percent increases.. ... some first time buyers are finding it hard to build any equity ... and LIVE too.


Yes it is a good time to buy... if you know all the options... carefully examine the costs. Yes it would be nice to stop paying someone elses mortgage and start building your equity.