Winnipeg Real Estate News Updates - Back to School 2019

September 5, 2019 | Posted by: Ron Chan

Winnipeg Real Estate News Updates - Back to School 2019

Labor Day long weekend is over and whether or not you count kids in your household you could use a “back to school” season refresher on real estate / mortgage news in the Greater Winnipeg area. Here it is.

Two End of Summer Developments in the Winnipeg Real Estate Market You Need to Know About

The Bank of Canada Maintained the Overnight Rate, Again

Are you getting tired of hearing about how the Bank of Canada persists in keeping their overnight rate steady at 1.75 percent? Of course not, because as a prospective buyer in the Winnipeg real estate market this is nothing but great news. 

It’s true, on September 4 (onset of the new school year) the Bank of Canada announced that they would maintain the overnight rate. It has not changed since 2018. The trend (spurred by the low bond yield) has 5-year fixed mortgage rates plummeting as low as 2.64 percent for low risk buyers, and just over 2.8 percent for even higher risk buyers. Heck, variable rates are also dropping so investors on both sides of the coin are chomping at the bit. Yet somehow, even with all of the investor/buyer activity, the average price of Winnipeg real estate remains better than any other major city in Canada.

The move has some critics citing that the new flurry of buyer activity could add to already-high household debt levels, but remember that mortgage underwriting rules help to contain the escalation of vulnerabilities. But alas, you’re no economist, just a savvy buyer who seeks to take advantage of the economic situation. Here in the back half of 2019, the timing could not be better.

Contact Ron Chan today to capitalize on these low mortgage rates

First Time Home Buyer Incentive Launched September 2

Remember when we said the timing to enter the real estate market could not be better (like, two sentences ago)? It just got better. On September 2 an integral part of Canada's National Housing Strategy took effect. The First Time Home Buyer Incentive seeks to lower mortgage costs for new home buyers by giving you 5 or 10 percent of the home’s cost. The program is available to all Canadian citizens, permanent residents and non-permanent residents who are legally permitted to work in the country, where household income is equal to or less than $120,000 CAD. The total borrowing amount is limited to just four times the qualifying income. The latter point is fantastic news for Winnipeg residents given that the city boasts lower average home prices. Better yet, all types of homes (provided conditions are met) can be considered, whether a single detached property, townhouse, duplex, or condominium. 

As of next week, qualified buyers can submit applications for the incentive to the government. Considering everything addressed above, first time buyers in Winnipeg are in an incredible position. Just…wow.

Contact Ron Chan to find out if you qualify for the First Time Home Buyer Incentive

If you have any further questions, please call Ron Chan directly at 204.290.9950.

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