VINE GROUP COMMENTARY
Exciting changes were proposed to Canada’s federal mortgage policy yesterday. Through these proposed changes, we will see the maximum purchase price for insured mortgages increase to $1,500,000. This means, you can now purchase a home for over $1,000,000 (up to $1,500,000) with less than 20% down payment. Additionally, amortizations on insured mortgages will increase to 30 years, up from the previous standard of 25 years (this will help with cash flow and reduce monthly payments for clients). Additional details will be released in the coming week and the proposed changes are expected to be implemented December 15th, 2024!
In other mortgage news, Canada’s annual inflation rate has finally hit the Bank’s target of 2%! As we study the correlation between the Bank’s overnight interest rate and inflation rate, it is expected that with lower inflation numbers, we will see lower interest rates. Given we are within the target range set by the Bank for inflation, all signs are pointing to additional interest rate cuts for the remainder of the year and reduced interest costs for our clients.
Tyler Lipinski, Mortgage Agent Level 2
647.868.1427 | tyler@vinegroup.ca
555 Bloor St. E., Toronto, ON M4W 1J1
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