Toronto, Ontario (PRWEB) December 10, 2012
The recent changes in Canada mortgage rules were aimed at cooling down the much heated housing market of Canada. The new rules became more stringent which added to the misery of home owners and the housing industry overall.
The new rules have led to an increase in monthly mortgage costs and total interest costs due to a reduction in the amortization period from 30 to 25 years. However, supporters of these changes argue that it would result in savings of interest costs in the long run as the individual will not have to pay interest for the five years that have been eliminated.
The overall housing market of Canada has been slowing down since the inception of these changes, thus leading to a slower growth in the economy as a whole. Toronto, particularly, witnessed a sharp decline of 15% in home sales between October 2011 and October 2012.
The average selling price for transactions held in October was $503,479, which is an increase of 6.2% from October 2011. Moreover, the benchmark price calculated by MLS Home Price Index also increased by 5.1% since the last year. This benchmark price is derived on the basis of the home attributes.
Ann Hannah, the President of Toronto Real Estate Board (TREB) proclaimed, “Compared to 2011, home sales in Toronto have reduced during the second half of the 2012. This is mainly because individuals have delayed their plans for home purchases due to the increase in monthly mortgage payments led by a reduction in the maximum amortization period”.
Jason Mercer, the Senior Manager of TREB’s Market Analysis added, “The price increases in Toronto have been greater than the general rate of inflation. The number of active listings remained low, which means that there remains significant competition between potential home buyers, particularly for homes that have experienced a low increase in their prices”.
Marcus Arkan, the CTO of Syndicate Mortgages explained further, “The changes in Canada mortgage rules led to a dampening effect on the housing markets throughout Canada. Toronto, specifically, witnessed a 15% decline in home sales. This is because houses have become more unaffordable after the changes, and if this persists, the homebuyer demands will erode further in the future”.
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.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062