Effective February 15 2016:
New tiered minimum down payment rule applies for mortgage applications: 5% on the first $500,000 and 10% on anything above $500,000.
Example: If the sale price is $700,000, the minimum down payment is $45,000 ([5% of $500,000 = $25,000] + [10% of $200,000 = $20,000]).
What this means for the buyer:
As prices continue to rise in the Barrie area buyers might have a harder time upgrading to a larger home. Expect an increase in buyer demand over the next couple months as buyers try to take advantage of the slower market and current down payment rules.
What this means for the seller:
You might want to try to get your home on the market sooner than later so that you can take advantage of a larger buyer pool. Because many buyers are on a fixed incomes, there could be less buyer demand over the $500,000 mark after mid February.
We could experience a small spike in the market as buyers and sellers rush before the new rules come into effect. Expect the market to level off for a month or two then the spring market will hit in full force.
It's going to be a great year for real estate in the Barrie and surrounding areas.
Please get in touch with me if you would like to discuss this topic in more detail.
If you know someone that might find this information useful, please pass along! With my major being in economics, I interpret the market differently than the average agent does.
New tiered minimum down payment rule applies for mortgage applications: 5% on the first $500,000 and 10% on anything above $500,000.
Example: If the sale price is $700,000, the minimum down payment is $45,000 ([5% of $500,000 = $25,000] + [10% of $200,000 = $20,000]).
What this means for the buyer:
As prices continue to rise in the Barrie area buyers might have a harder time upgrading to a larger home. Expect an increase in buyer demand over the next couple months as buyers try to take advantage of the slower market and current down payment rules.
What this means for the seller:
You might want to try to get your home on the market sooner than later so that you can take advantage of a larger buyer pool. Because many buyers are on a fixed incomes, there could be less buyer demand over the $500,000 mark after mid February.
We could experience a small spike in the market as buyers and sellers rush before the new rules come into effect. Expect the market to level off for a month or two then the spring market will hit in full force.
It's going to be a great year for real estate in the Barrie and surrounding areas.
Please get in touch with me if you would like to discuss this topic in more detail.
If you know someone that might find this information useful, please pass along! With my major being in economics, I interpret the market differently than the average agent does.
Don't wait until the Spring, act now!
CONTACT ASHLEY LAMB TODAY for more information on this topic and how it might impact the Barrie housing market. 705.816.LAMB (5262) or [email protected]