Toronto Condo Projects Put on Hold Due to the Reduction in Sales

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Marcus Arkan, CTO of Syndicate Mortgages and a mortgage experts discusses about the implications of the amended Canadian housing and mortgage rules on the future of the market

The amended Canadian housing and mortgage rules have been of much concern for the lenders and borrowers alike. Though these changes were implemented to cool down the housing market by increasing overall costs of mortgages and prices of houses, this has also led to a decrease in the overall economic growth of Canada.

The reduction in the amortization period, specifically, from 30 years to 25 years has significantly increased the overall mortgage and interest costs. Though supporters of these changes claim that individuals will benefit with interest cost savings as they would not have to pay interests for the five years eliminated, this will only benefit them in the long run and does not off-set the impact of higher interest costs in the short run.

Individuals who want to undertake these home mortgage loans will have to cut down on their monthly personal expenses to be able to make payments for the mortgage and interest costs. However, this may not be possible for them as there are some monthly expenses that need to be incurred and are important for their survival.

The reduction in the demand for houses has affected the Toronto housing market severely. During the third quarter of 2012, only five condo projects were launched in Toronto as developers now prefer to review their unit mix and pricing assumptions in order to provide cost-effective condo projects to be able to attract and retain demand in the already dampened housing industry.

Currently, developers are continuing with the projects that are under construction but are sold already. There are no issues with that as they are already sold and will not be affected by the fluctuating demand in the market. However, projects that need at least a few sales numbers to commence construction have been delayed due to the uncertainties prevailing in the housing and mortgage market of Canada.

Marcus Arkan, a mortgage expert and CTO of Syndicate Mortgages sheds some light on the situation, “The developers in Toronto have now become more conscious where the construction of new towers is concerned. This is because of the recent fluctuations in the housing industry that have decreased the housing demand significantly. Though the sales are being undertaken, but at a slower pace.”

To know more about the current mortgages being offered, visit the Syndicate Mortgages website.

About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.

Contact Details
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062
Email: info(at)smibroker(dot)com

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