April 2019 Market Report

  • Larose Team
  • 04/24/19

FEDERAL BUDGET 2019 - HELP FOR FIRST-TIME BUYERS

Toronto- Sales in the GTA were flat in March compared to March 2018 as many buyers remained on the sidelines and new listings declined. Strong areas continue to experience multiple offers which have resulted in a very small average price decline of 2.4 percent for detached homes.

Big news with the details of the 2019 Federal Budget being released on March 19th. Although we had hoped for a change in the mortgage stress test rules or even the return of 30-year amortization for insured mortgages, the government took a different approach. They have announced an “Equity Share” program which will come into effect this Fall. Under the program, CMHC will provide first time home buyers with 5% of the down payment on re-sale homes and 10% on new construction. This is essentially given by way of an interest free loan which will eventually need to be paid back. The idea is that it will reduce monthly costs for the borrower and make it easier to get into the market.

There are still details to be worked out but for now we know the following criteria to qualify:

• Must be a first-time home buyer
• Maximum household income cannot exceed $120,000
• Maximum mortgage amount cannot exceed 4 times your gross household income

The government has also proposed changes to the Home Buyers Plan. They are now going to allow you to draw $35,000 from your RRSP’s to use towards the purchase of a home!  This is up from the current limit of $25,000.
They also said they will amend the rules to allow those who have been through family crisis to access the program.

MORTGAGE RATE UPDATES:

Bond yields continue to drop and that means that fixed rate mortgages are dropping as well.  We can likely expect fixed rates to continue to slowly decrease as we continue into the spring market. Chances are that by the time you are reading this the best 5-year fixed rate of 3.19% will likely be lower.

Variable mortgage rates change with the Bank of Canada overnight rate. The last time the Bank of Canada increased its overnight rate was October 2018.  The last Bank of Canada rate announcement was March 6, 2019 and the overnight rate was maintained at 1.75% and correspondingly the prime rate for majority of lenders remained at 3.95%. While original predictions thought the economy would be strong in 2019, the year has started out with a lot of economic uncertainties. Most experts are predicting there will not be any more increases this year and potentially even a rate drop at some point. The next Bank of Canada announcement is scheduled for April 24, 2019.

  If you are looking for mortgage financing, please contact Amiel Jelinek from Mortgage Alliance at jelinekmortgages.ca

Considering a move this year, please contact Kevin at (905) 278-7355 or info@laroseteam.com

 

 

Selling or buying a home is one of life’s biggest decisions. The foundation of the Larose real estate team is based on a strong belief in ‘our client’s needs come first’. For us, the most satisfying feeling is the knowledge that we have been instrumental in helping our clients make the best real estate choice for their family.

The Larose team has been assisting clients for almost 20 years with their real estate needs and we can be counted on for our sound advice, expertise, unsurpassed market knowledge and client focused approach.

*Review our complete list of services below

Buying a home? We also have programs to give you access to properties not yet on MLS. Our experienced sales representatives represent your interests only, and negotiate hard for your family.

  1. Complimentary & Confidential Home Evaluation
  2. Team Approach - WE Cover all details
  3. Preparing YOUR PROPERTY - Network of preferred partners/trades
  4. Staging -Complimentary staging consult / accessorizing to maximize the value of your home
  5. Pre-Home Inspections
  6. Complimentary Home Cleaning services
  7. Branding - A Custom strategy for your home
  8. In House Marketing team
  9. Professional Photographer & Videographers
  10. Custom Floorplans & Virtual Photo Tours
  11. Professionally designed & printed property brochures
  12. ‘Coming Soon’ program - E-blast to our exclusive database
  13. Just Listed Mailer
  14. Agent Preview - E-blast to our exclusive database
  15. Targeted ‘Open House program’
  16. Online presence - includes video tours - social media channels, Google, Facebook, Instagram, YouTube, Vimeo
  17. Drone Photography
  18. International targeted ads to maximize exposure to the right buyers
  19. In House real estate lawyers
  20. Keller Williams preferred partnerships with CIBC & RBC Mortgage advisors
  21. Listed on Keller Williams International website with access to over 175,000 agents and their clients worldwide
  22. Relocation Services
  23. Inside sales prospecting the Larose buyer database
  24. Access to Larose Exclusive ‘Client Zone’ website for instant feedback
  25. Professional in house team handles all legal and fiduciary duties
  26. Experienced Negotiators - We represent your interests and deliver results

CALL US TODAY AND PUT THE POWER OF OUR EXPERIENCED, CLIENT FOCUSED TEAM ON YOUR SIDE.
(905) 278-7355

PRE-CONSTRUCTION CONDOS & TOWNS

Gain access to exclusive incentives before the public. Sign up today to receive access to the latest developments as they become available to the public!

 

Follow Us

Work With Us

Our goal is to make the process as easy as possible for you. Gain access to our extensive network of established and preferred vendors and service providers whom we trust and have built long-lasting relationships with.

Contact Us