Top 10 Effects Of The New Mortgage Rules

I just read this article at:

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2011/01/top-10-effects-of-the-new-mortgage-rules.html

Very interesting predictions, indeed. The most interesting, and likely, in my opinion are these two:

1) A small portion of home buyers will sprint to buy homes with a 35-year amortization before March 18, followed by downward pressure on home prices after March 18 as the amortization reduction removes market liquidity

2) If amortization restrictions accelerate falling home prices, we’ll see somewhat greater default risk and more negative equity situations among low-equity homeowners

The bottom line for most people deciding whether or not now is the right time to buy or sell is their life situation. People with job transfers, experiencing divorce, with a growing family, or who are empty-nesters, will buy and/or sell without worrying about what the market is doing, assuming that they have the ability to do so. The mortgage qualifying changes may reduce the ability of a portion of the population to buy, which could have a negative effect on prices.

If you need help in analyzing current market trends, in order to help you with your decision to buy or sell, please give me a call. I'd be happy to help!