- You can only amortize (is that a proper verb?) for 25 years, not 30
- You can only re-finance to the value of 80% of your home’s worth, not 85%
- If you’re buying a home worth over $1 Million, you cannot get a government-backed mortgage, and for homes over $2 Million, you need to put 20% down.
Last year, an international consulting firm predicted that Canadian housing prices would drop by 25% over the next 3 years, stating that ”Housing valuations have lost all touch with fundamentals and household debt is at a record high.” And the folks at TD Bank agreed, although they figure the prices might drop by only 10 -15%.
We should be quite thankful that here in the Sea to Sky corridor, we’ve not had the crazy volatile market experiences that folks in Vancouver, Toronto, Calgary, and other select markets have gone through over the years. Bidding wars are relatively rare, as are extreme price increases or decreases. We seem to bob along quite nicely, without the excessive fluctuations of demand and supply seen elsewhere.
Waiting for the bubble to “burst” can cause a lot of stress- the bottom line is that you just never know. It’s all speculation. Anything can happen. Some people just sit on the fence. They wait and wait for a price decline … and it just never does. Then the prices go UP…and they slowly get squeezed out of the market.
But buying for the sake of buying is equally a problem. You can make rash, emotional decisions that come back to haunt you. Think of your finances- prepare for the tough times and the good times- and be sure to shop around for the property that suits you for the long(er) haul.
But, most importantly, get the advice of experts- a trustworthy realtor, a qualified home inspector, and a good mortgage broker can make all the difference in the world.