What Windsor Home buyers, sellers and investors need to know...

The top six largest banks in the country asked the Canadian government to enforce stricter mortgage lending rules. The goal in mind is to prevent a housing crisis similar to what is currently happening in the US.

The average resale price of a home in Canada was $337,410 in December, according to data from the Canadian Real Estate Association. That was 19 per cent higher than in December, 2008, and sales activity has also increased sharply. Unfortunately here in Windsor we are not experiencing the norm of the rest of the country. Windsor’s average home sale price in 2009 was $154,449. We are less than half of the national resale home price average but, the changed rules still apply over here in Windsor.

February 16th, Federal Finance Minister Jim Flaherty announced cautious changes to mortgage insurance rules. They are intended to come into force on April 19, 2010. They are as follows:

1. All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term

2. The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home

3. Non-owner occupied properties will require a minimum down payment of 20%.There were no changes to down payment requirements or length of amortizations for owner-occupied residences

If you are looking for an income property in Windsor you may want to expedite the buying process. If you feel any of the above noted changes will affect your ability to purchase it may be in your best interest to do so prior to April 19th of this year.

It is worth noting that the Federal Government already earlier this year discontinued 100% financing and 40 year amortization in an effort play it safe with lending.

Servicing Windsor Essex County and Surrounding areas – Riverside, Tecumseh, Lakeshore, Central Windsor, East Windsor, South Cameron, Lasalle, South Windsor, Old Walkerville, Waterfront Properties on Riverside Dr., Waterfront Properties on Lake St. Clair and Lake Erie, Condos, Income Properties, Helping Seniors and their Families in the Windsor Real Estate Market. If you need any real estate help please get in touch.
Carrie-Lynn and Mariella