Real Estate Trends for 2020 by Sean Cooper – Smarter Loans

Hi I’m Shawn Cooper, author of “Burn
Your Mortgage” and I’ve been analyzing the market and here are the top real
estate trends I see in the coming months. The first trend is low interest rates.
With the uncertainty right now in the economy and the fact that the Canadian
economy isn’t growing as quickly as anticipated, I foresee interest rates remaining low for at least the end of 2019 heading
into 2020, so that’s good news for mortgage borrowers. Trend number two is shared equity mortgages. hared equity mortgages are something new, coming out in September of 2019 and essentially what it is, is the government
is going to be sharing in the ownership of your property so if you’re buying a
resale property they’ll give you up to 5% of the down payment if you’re buying
a new property it’s 10% of the downpayment. That helps your mortgage payments be more affordable and that helps you get into the real estate
market sooner. The only limit to that is you can only spend up to $480,000 on a property so in more affordable markets
like Winnipeg and Saskatoon it might help but in markets like Toronto and
Vancouver there aren’t a lot of properties at that price point so I
don’t think it’s going to have as much of an effect there. Tip number three is
modest price gains in terms of home prices in Toronto Vancouver. I just don’t
see the home prices going up at gangbuster rates a system going up
perhaps 2, or 3 or even 5% in Toronto but I don’t see them going up at
a crazy rate like they were perhaps two or three years ago. The mortgage stress
test has made it more challenging to qualify for a mortgage so that’s
definitely put a bit of a damper on the market but I do still see them going up
about the rate of inflation.

Paul Whisler

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