With a delayed warm weather, Spring gives way to the long awaited Summer days. As many look forward to head to the outdoors, many important changes and trends continue to occur in Toronto's Real Estate marketplace.
If you have been keeping up, you may have already heard about the historically low rates many lenders, including banks, have been offering in the last weeks. Investor's Group toped the charts in early May with variable rates as low as 1.99%, although Bank of Montreal had already started the trend in March with a fixed rate of 2.99%. The latest lender to make the headlines was Scotiabank with a 5 year fixed rate at 2.97%, good until June 7th.
But not all is good news in the Land of Oz. Many of these offers have restrictions on prepayments and penalties for early cancelations that can easily eat up all perceived rate savings. Buyers need to shop around, compare, and be clear about what restrictions apply to the rates being offered. You'll most likely want to get the best overall deal, not just secure the lowest rate!
Another aspect worth mentioning is how mortgage approvals have been under more scrutiny. Specially now that more specific lender regulations are contained in the B21 Guidelines (2014). More emphasis will be placed on the review of mortgage applications and borrower documentations. Less exceptions will be allowed when lender's qualify them and possibly a second compliance officer may have to give the ok before the mortgage is formally approved. Here is where getting pre-approved prior to shopping for your new home and being aware of how much you pay for your new property ( specially in multiple offers ) start to make sense.
Last but not least, here´s the Latest Toronto Real Estate Market Report ( click on the link ) to help you identify current market trends. We will also keep you informed when May sales reports are released, so you can remain updated.
Should you have any questions regarding any of these topics or would like to discuss your future plans over a cup of coffee (our treat!) be sure to get in touch. As always, we are here to help you get organized and ready for your future purchase.
That´s all for now. Let the warm days roll in and the Summer feel abound among us all!
All the best. Jose & Claudia
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Jose & Claudia
RE/MAX agents since 2001, avid negotiators and passionate for what we do. Buying, selling or renting your home with us has never been easier!