As the year draws to a close, the real estate market is taking an intriguing turn. While December traditionally marks a slowdown in activity, this year brings a unique twist with new federal policies poised to shake things up for buyers and sellers alike.
Starting December 15, mortgage insurance will become available for properties valued between $1 million and $1.5 million. This pivotal change lowers the financial barriers for buyers, allowing them to secure homes in this price range with a down payment of less than 20%. For many aspiring homeowners, this represents a significant boost in purchasing power.
What This Means for Buyers
If you’re looking for a home, this is an exciting opportunity to explore new possibilities. For buyers previously constrained by the 20% down payment requirement, the new rules open doors to neighbourhoods and previously unexplored property types. Semi-detached homes in Toronto’s Davisville neighbourhood or townhouses in Oakville might now fit within your budget.
Mortgage specialists like Matthew O’Neil from Connolly Capital already see buyers crunch numbers and line up pre-approvals in anticipation. However, while buyers can begin their search now, deals can only be finalized after the rules take effect on December 15.
Impact on Sellers
For sellers, the landscape is equally dynamic. November saw a surge of new listings as homeowners sought to position themselves ahead of the spring rush. While the market is calm, the upcoming policy changes will likely attract more buyers in the coming weeks. Sellers in the $1 million to $1.5 million range might find this an opportune time to list, as the increased affordability could drive demand.
A Mixed Reaction Across Regions
Not all markets will feel the impact equally. While regions with higher property values, like Toronto and Burlington, stand to benefit significantly, smaller towns such as Pembroke and North Bay may see minimal changes. In Guelph, the response to the new rules has been measured, with buyers still focused on interest rates. Similarly, Durham Region remains steady, with buyers waiting for potential rate drops.
A Word of Caution
As with any policy shift, the transition period may bring some challenges. Mortgage specialists anticipate potential glitches as lenders update their systems and processes. Buyers are advised to include financing conditions in their offers to avoid unexpected delays.
Looking Ahead
While the real estate market may feel sporadic heading into December, the stage is set for a dynamic start to 2025. Whether you’re a buyer looking to capitalize on the new rules or a seller preparing your home for the spring market, now is the time to plan and act strategically.
If you’d like to learn more about how these changes could impact your real estate journey, reach out today. Let’s navigate this evolving market together!
