Open House- The Real Estate & Mortgage Show February 17, 2018
On this week's episode, Frank Napolitano is joined by host Steve Gregory and Paul Rushforth discussing the low real estate inventory levels, mortgage rates and qualifying rates, and purchasing a property outside of the city.
On this week's episode, Frank Napolitano is joined by host Steve Gregory and Paul Rushforth discussing the low real estate inventory levels, mortgage rates and qualifying rates, and purchasing a property outside of the city.
The team talks about how the Ottawa real estate market has been making national headlines due to the low levels of inventory and stable market. In 2017, the average sale price was up over 5% and the number of sales was also up by 10%.
Ottawa is such an affordable place to buy with less traffic and more space than most major cities. The light rail line is a new draw for residents with some looking to relocate closer for ease of walking distance and for commuting.
Frank notes that mortgage rates are increasing, if not already then over the next few weeks. Increases in contract mortgage rates also increase the qualifying rates. Frank also explains some of the reasoning behind the qualifying rates. Part of the thought process is that if rates were to increase to the qualifying rate levels come your maturity date, you would still be able to afford your mortgage. The information used to qualify you as a mortgage is very different from what a person can comfortably afford so it is important for people to create a realistic budget factoring in the new mortgage payments and housing expenses prior to purchase a new home.
Although the housing stats state a 30% drop in activity, this is compared to the high volume December 2017 prior to the rule changes. Frank thinks it has been less impactful on the Ottawa market due to consistent evaluations and a stable job market.
Frank discusses alternate lending. In most, if not all cases, these lenders are primarily concerned with the value and marketability of the home rather than the emphasis on the strength of the borrowers.
The team discuses the cost of septic systems and maintenance fees. This is something that anyone looking to buy, or who own these properties, needs to take into account. Properties outside of the city come with many different aspects that a real estate professional can help navigate. This can include the septic system, water source, quality and well inspections. The cost for these inspections will be more than a traditional city home.