Home buyers in Nanaimo and the surrounding region have long see a great deal of growth in home values in recent months, and gradually over the last years. Those home prices are on their way up as a result of increased pressures within the market. There are fewer homes for sale than can meet demand, which is driving home prices up, as is the lack of new development in some areas. Foreign investors are also a factor. But, the new rules put in place for the financial industry for mortgages could hamper the ability of some individuals to buy a home here.
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Understanding the New Rule Implications in the Nanaimo Market
There are several new laws put into place or coming into play in the coming months that will change the way some people can buy a home in Nanaimo and the surrounding area. For example, those who wish to buy a home with less than 20 percent down will need to have a higher income level in order to achieve it. This is due to a new rule that will require these buyers – many of whom are first time home buyers – to secure a property based on the higher benchmark interest rate, not just on the rate they accept. The goal is to reduce the risk of foreclosure due to nonpayment, but realistically, it can become a limiting factor in the ability of some people to buy a home here.
What Can You Do?
There are other rules and changes coming to the financial industry for mortgages here in Canada. It’s important for you to first stay up to date on these changes, and to understand what the underlying factors are so you can plan for the impact they may have on your buying ability and goals.
Most importantly, work with an area real estate agent that knows the Nanaimo real estate market well. The Sims Real Estate team can help you to determine a realistic budget, and align your goals with your purchasing ability. There are excellent opportunities in homes to buy here, and these new rules shouldn’t limit your interest in buying a home in beautiful Nanaimo.