• hamilton housing marketHamilton Housing Market: What Home Price Is Right For Me?

    Kyle had found our Mortgage Architects office after reading our reviews. He came into our office after work still dressed in his trades clothing. They say never judge a book by its cover. Well, it’s true! I thought he was in his late teens or early 20s, but he was 31. Kyle wanted to know how much he could be preapproved for. It turned out in his case, it was $500,000. He seemed pleased but then he said: hey, I do not want to go in over 400,000. Then it was my turn to be pleased.

    Mortgage Stress Test

    At Robert Floris’ Mortgage Architects office, we may have been premature slamming the mortgage stress test. It was our early thoughts that maybe we should just let the markets freely dictate our approvals for mortgages with the current mortgage rates. But as most potential mortgagers know, to be approved in today’s Canadian mortgage world and the Hamilton housing market, you must pass a mortgage stress test at 5.19%. Since the mortgage stress test has been applied, let’s review what has happened to the Hamilton housing market:

    • Potential homebuyers were qualified for less
    • For a time period, house sales slowed
    • In many cases, homebuyers decided to rent
    • Rent went up, in fact in the city of Hamilton they are up 24% year-over-year
    • Homebuyers have decided to go back to practicality as Hamilton Mountain bungalows and lower city homes create demand
    • Homes with apartment potential basements have intensified citywide

    In the long term, maybe the stress test did have a purpose, and yes I do admit I may have been wrong. Which brings me back to Kyle, he gets it. He wants a home in the Hamilton housing market with a similar mortgage payment as rent.But more importantly, Kyle also wants a life.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

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