What's Up Wednesday 05/26/2021
Short and concise info on the last week.
Mortgage Stress Test
The new stress test measures have been confirmed, and will take effect starting on June 1st, 2021. The original group of uninsured mortgage borrowers affected will now also include those who have high ratio mortgage with default insurance. The current stress test interest rate is set at 4.79%. The new stress stress interest rate is set at 5.25% or the offered lender rate +2%, whichever is higher. This is expected to affect the buying power of all Canadian's attempting to buy a home. This is an effort to cool the bidding wars that have driven the sale prices of homes sky high.
The Canadian Real Estate Association realized information regard the overall home price rise from the beginning of the pandemic. In the GTA the overall increase was 17%, but the astonishing numbers come from the surround area 100km around the GTA, averaging over a 40% increase in housing prices within that radius. What this means is that the smaller communities surrounding Toronto has now been affected by the wide spread buying of the vacating residents of the urban centre.