New Mortgage Rules and Its Impact

Well writing a BLOG a very long time feels exciting and this time Im actually writing before everyone of the so called Professional Real Estate Agents have written their part of the negative, pessimistic story. Not to critcize anyone, but most of the times its so upsetting that I get calls from all walks of life with worry in their voices and negativity in their minds. Anyways, having said all this. Its evident that the government is trying its best to save the Real Estate Crash and the Real Estate downturn which they feared was happening and all the media was adding flare to the flame. Though in my personal opinion and experience doing business gloablly, this boom was nothing compared to many world markets and sorry to say most Canadians weren't strong enough to morally accept this boom, and started to make noise with negative thoughts, hence the situation. 

 

It's all foreign money that's hurting our ecomony, its the Chinese money that's flowing into the country, it's the Persian and Arab money... and on and on and on to a point where the media somehow started to accept this noise and the media flare. After reading and realising that it's not all foreign money, they had to testify they were somewhere wrong but were bringing in facts and numbers out of no where. The foreign money was and is only 5%-8%, the rest is from our rich Canadians living in different parts of Canada. The 5%-8% included money that was gifted to Canadian children by their foreign parents by the way. The rest of the money was from our brothers and sisters earning 5 figures and more in other parts of Canada. I helped a group of five friends in the IT industry wanting to invest their hard earned 5 figures savings into the Toronto Real Estate market because their region of Calgary wasnt exciting with the Real Estate Returns. I helped a group of 3 Doctors from Nova Scotia who wanted to park their saved money into some Toronto Real Estate and the cycle continues adding many other professionals like myself helping other Canadians bring money into Toronto. 

 

Despite, this scenario, and despite implementing the foreign buyers' tax that tremendously slowed the SALES (not the price, but sales) there was a 6% conservatively speaking appreciation in the Ontario Real Estate Market. As always, I would like to highlight, I only gives facts and figures keeping the TREB reports by my side. I never do or want to encourage anyone to read material that is not authentic. Now this appreciation was not all over, it was in some pockets and we can discuss that over a phone conversation if you need to know where.

 

The New Mortgage Rule is basically another method to scare people and investors away, who don't seem to get scared. If you remember reading my previous BLOGS, Torontonians are one breed who never give up no matter what regulation is implemented in the Real Estate Industry. With this new Rule, buyers who were sleeping have woken up and my phone has been ringing since yesterday, investors have started to raise the property prices to target those who are rushing in to get themselves pre-approved. Interested buyers who thought and were thinking the market is further going to stop and dip realised suddenly that with stricter mortage rules they wont get approved in any case, so they have started to make quicker buying decisions. The funny part is that once the Spring 2018 Market kicks in, I anticipate another start of a scenario just like late 2015. Fingers crossed !