Easier Mortgage Renewals for Etobicoke Homeowners!

Easier Mortgage Renewals for Etobicoke Homeowners!

Did you hear? Big changes are on the way for mortgages, designed to make homeownership more affordable and flexible. Whether you’re buying your first home or already own one, these updates could have a big impact. Let’s break it down so you’re in the know!

Stress Test Removed for Mortgage Renewals

As of November 21, 2024, homeowners with uninsured mortgages no longer need to pass the stress test when switching lenders at renewal. This change, affecting nearly 70% of Canadian mortgages, makes it easier to shop around for better rates and terms.

Why It Matters

• Save Money: Even a small rate reduction, like 0.20%, could save you thousands—over $4,800 on a $500,000 mortgage in five years!
• More Options: Lenders are now competing harder, offering more products, better rates, and perks.
• Less Hassle: Skip the stress test and enjoy a smoother renewal process.

What to Do Next

• Compare rates from different lenders to find the best deal.
• Lock in savings by securing a lower rate.
• Work with experts to navigate the process and maximize your financial flexibility.

Good News for Move-Up Buyers

Effective December 15, 2024 changes to the insured mortgage cap are creating exciting opportunities for move-up buyers. With the cap to be increased to $1.5 million, upgrading to a larger home may be easier, requiring a smaller down payment.

How Does This Help?

• Higher Price Limit: Homes up to $1.5M now qualify for insured mortgages, even with less than 20% down.
• More Affordability: Buyers who have built equity but lack a large down payment can still move up in the market.

Imagine you’ve been living in a condo in Etobicoke for a few years and have built up some solid equity. Now, you’re ready to make the leap to a spacious single-family home that suits your growing needs. As of December 15th, this dream is more attainable than ever. You can find many different Etobicoke neighbourhoods where homes are priced between $1 million and $1.5 million. These homes offer incredible value with great schools, parks, and vibrant communities.

• Old Down Payment Requirement: To upgrade to a home worth $1.35 million, you would need a 20% down payment of $270,000.
• New Down Payment Rule: With the new cap, you now only need 5% on the first $500,000, and 10% on the remainder. This means you only need $110,000 as a down payment—saving you $160,000 upfront!

Why This Matters for You

This change makes moving from your condo into a beautiful single-family home more affordable and accessible. Homes in Etobicoke, with prices ranging from $1 million to $1.5 million, now feel within reach. Whether you’re upgrading for more space or looking for a backyard for the kids, this is your opportunity to invest in a home that truly fits your lifestyle.

The best part? With a lower down payment, you can unlock more opportunities, build even more equity and take full advantage of the amazing housing options in Etobicoke. Your dream home is closer than ever!

Next Rate Announcement

The Bank of Canada’s next rate announcement is on December 11th and could bring another reduction of 25 to 50 basis points, making your move even more affordable and accelerating the process. If you’re ready to start planning, I’m here to help! I have my finger on the pulse of the Etobicoke market and can guide you to the best neighborhoods where you can find a great bungalow, 2 storey, townhouse etc. for $1 million to $1.5 million. I’ll keep you updated as soon as new listings come up or if prices on existing homes are reduced. This is the best way to stay ahead in the market and make a move at the right time. Your dream home could be closer than you think! Let’s connect and make it happen.