{"id":1482,"date":"2019-09-05T21:37:58","date_gmt":"2019-09-06T01:37:58","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=1482"},"modified":"2019-09-05T21:37:59","modified_gmt":"2019-09-06T01:37:59","slug":"mortgage-update-2","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/mortgage-update-2\/","title":{"rendered":"Mortgage Update"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

Here is a little update from our trusty mortgage specialist Jake Abramowicz:<\/p>\n\n\n\n

Hello!<\/p>\n\n\n\n

You might be wondering why I have not said\/written much about the new CMHC program that just came out on Tuesday. Well, the reason is simple: It’s much ado about nothing… at least not for the 416 area code. You all know the major points by now: maximum mortgage is 4x income, deal must close November 2nd or later, the max purchase price is $565,000 and the CMHC shared equity can be paid back anytime upon sale OR prior with no penalty (except the appreciation percentage being split).<\/p>\n\n\n\n


…Yadda, yadda…<\/p>\n\n\n\n


For Toronto-based buyers, this isn’t very helpful when you consider average house prices are way, way, wayyy higher and most first-time buyers exceed 4x income. For those in the 905 area, though, this program\u00a0can<\/em>\u00a0help first-time buyers as long as they don’t exceed that 4x income ratio. I\u00a0do<\/strong>\u00a0want to say two other things about this program which, I think, are positive:<\/p>\n\n\n\n


1. Anytime a new program is introduced, no matter how short it comes compared to what people expected (like this one), it’s a good thing. Added liquidity in the market means to me that the Government still recognizes it has\/had to do something, and, hopefully, maybe, we will see some minor tweaks to it down the road. Remember, an election is coming in October so this program\u00a0may not<\/em>\u00a0last long anyways, or, it may get tweaked if a new party comes to power.<\/p>\n\n\n\n


2. Anytime a program like this is introduced it also brings out competitors who are introducing similar programs. Already I have seen three start-ups in the US create a “shared equity” model and now in Toronto we have:
https:\/\/neighbourhoodcapital.com\/<\/a>and https:\/\/archcanada.io\/<\/a> <\/p>\n\n\n\n

Two companies who are NOT limited in the 4x income, and could lend you the entire down payment for your home with a shared-equity model. <\/p>\n\n\n\n

They are still in early stages but as soon as they announce their lender partners I’ll be sure to tell you all about it, and, see if this is even remotely viable in our rather conservative lending environment. A lot of our lenders in Canada are very risk-averse and\u00a0technically<\/em>\u00a0this can be considered to be 100% financing – with some caveats – so I wouldn’t necessarily hold my breath that this will be a huge success but – any new programs and capital and liquidity are only a good thing in my eyes!<\/p>\n\n\n\n


Thanks for reading, and if you have any questions about the new programs above, shoot me a line anytime.
Jake 416-910-4448<\/p>\n\n\n\n

Jake Abramowicz<\/p>\n\n\n\n

E:\u00a0Jake@mortgagejake.com<\/a><\/p>\n\n\n\n

C: 416 910 4448<\/p>\n","protected":false},"excerpt":{"rendered":"

Here is a little update from our trusty mortgage specialist Jake Abramowicz: Hello! You might be wondering why I have not said\/written much about the new CMHC program that just … [read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,984,2,5,153],"tags":[7,92,28,1171,1045,672,126,43,1170,632,9,54,1172,6,191,217],"class_list":["post-1482","post","type-post","status-publish","format-standard","hentry","category-community","category-investment","category-media","category-real-estate","category-toronto","tag-don-mills","tag-east-york","tag-finance","tag-first-time-buyers","tag-gta-homes","tag-karen-millar","tag-karen-millar-team","tag-leaside","tag-mj","tag-mortgage-jake","tag-real-estate","tag-scarborough","tag-sellers","tag-toronto","tag-toronto-homes","tag-toronto-mortgages"],"_links":{"self":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/comments?post=1482"}],"version-history":[{"count":1,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1482\/revisions"}],"predecessor-version":[{"id":1484,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1482\/revisions\/1484"}],"wp:attachment":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/media?parent=1482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/categories?post=1482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/tags?post=1482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}