We often find ourselves at odds. As proud Winnipeg residents and business owners we want to see the city thrive. We want to see new arrivals, families, and young professionals alike find a place to call home in our fine city. But when we hear news that is great for first time home buyers we can’t help but note the somber feelings of others who are impacted in the opposite direction. Recent real estate market news from the Government of Canada offers the very same takeaway. Effective April 6 2020, the mortgage stress test will be relaxed for first time buyers who qualify for an insured mortgage – those securing a mortgage on lower value homes with less than a 20% downpayment.
This is great for new buyers, but how does this impact owners of older fixer-uppers?
How 2020 Mortgage Stress Test Updates Make Your Older Winnipeg Property Even Less Attractive to New Buyers
Budget-Conscious Buyers Just Gained More Purchasing Power
If you want to read the entire Government of Canada announcement about the mortgage stress test change you can do so here. But the gist is pretty straight forward. The new stress test will follow actual mortgage rates being offered by lenders during the mortgage application process, and will be more responsive to market conditions. If you’ve been casually following Winnipeg real estate market news, then you know mortgage rates have been plummeting through the most recent annum, which is great news for buyers who are about to complete their very first stress test. Simply put – their purchasing power has increased. All else equal, in April they will qualify for a larger mortgage when compared to today.
What does this have to do with you, the owner of an old home in Winnipeg? Armed with greater purchasing power, new buyers are far less likely to buy a fixer-upper – your property! When you factor in the fact that Winnipeg already boasts the most affordable real estate when compared to all other major cities in Canada you’ll find that your run down home has little to no shot at selling in a traditional setting. That’s if a Realtor or agent will accept your listing in the first place.
What Are Your Options Now?
In the introduction we stated that we feel for those stuck in the rut of a run down home when market news favors new buyers. But we find peace of mind in knowing that we provide owners of old properties with a quick and fair alternative. If you have found that you simply cannot sell your home through traditional channels (Realtor/agent) yet need to sell fast without losing your shirt in the process, we have the solution you need.
We will buy your old home, for cash at fair market value, within the week. Learn more about how it works here, or simply contact us at 204.222.0022 for a friendly noncommittal discussion.