it's the tipping point for the amount of down payment required by the lenders.
Once the price is $1 million or more, the downpayment increases to 20%. Monthly payments aren't the problem but the downpayment is for many Buyers.
This helps to explain why we are seeing more activity in sub $1million price range-it's still doable for many Buyers who don't have the $200K or more for the down payment..
With rates on the rise, it's time to get creative with mortgages. We've been conditioned to think that the only options are a Variable mortgage or a 5 year Fixed...but there's more.
What happens if you lock in for 5 years & in 3 years time, rates are dropping again, leaving you with higher costs & a mortgage no Buyer would assume? Of course that means putting some thought into what might happen over the next few years & assessing your risk tolerance.
Good information again in the Globe and Mail from Robert McLister that is worth a read. 3 economists weigh in
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