Mortgage broker Greg Williamson has come up with a creative solution to buyers’ fears of a price drop.
The Buyer Protection Plan, launched in January, is designed to protect the buyer for 12 months against a reduction in market value of their home, as the seller places five per cent of the sale proceeds into escrow for a year, guaranteeing market value. If the market falls one to five per cent, then the buyer and seller share the escrow funds proportionally. If there is no loss in market value, the seller reaps the entire five per cent.
Read more http://bc.ctvnews.ca/buyers-insurance-policy-protects-homeowners-from-price-drops-1.1271390#ixzz2SiwIgACS
Two Moody’s analysts maintain that Canadians have borrowed too much and consumer debt will be the undoing of some:
‘Last week’s mortgage changes unveiled by regulators and the federal government are positive for Canada’s banks, but “may be too late to avoid a housing correction,” according to analysts at Moody’s Investors Service.’
Read more Mortgage changes may be too late
Last night on CBC’s The National, a panel of learned individuals were discussing the real estate “bubble” in Canada. CBC The bottomline
The general consensus was that we’ll see a 10 – 15% correction in housing prices. Continue reading