Want to sell your home? Get a FREE home value report.
Want to buy a home? Search all homes for sale.
I wanted to tell you about some of the changes we're seeing in our lending market locally.
Over the last couple of weeks we've been talking about a cooling down shift in the North Delta real estate market, so I wanted to bring up the most timely information from the financial side of real estate, and some news coming out of Scotiabank. They are effectively backing off on lending throughout metro Vancouver.
Basically, Scotiabank is looking at our market and getting a sense that there's too much risk here in Vancouver to keep letting people borrow money to buy a home.
To quote Scotiabank CEO Brian Porter, "We're a little concerned about house prices in greater Vancouver and Toronto." They're effectively taking their foot off the gas, and scrutinizing the transactions coming out of metro Vancouver.
“
”
Lenders are starting to send signals.
”
If rates were to increase - which isn't unfathomable - at some of the values people have borrowed, it really is too much risk for the lender, and for the homeowner at that point. Porter says there is a possibility of an upside in these market, but the downside is a very real possibility. If you see money tightening by the banks, it really could have a significant impact on the Vancouver real estate market. If the Provincial and federal governments are failing to take action, then the next would be the lender, and you're starting to see that.
If TD and RBC follow and we see more lenders really clamp down on the deals, then yes, sales are going to slow, and it will have an immediate impact on North Delta real estate as well.
This is very timely info, but please understand, the market is still very healthy here in North Delta. The sky is not falling and the market is not crashing! If you have any questions, please feel free to reach out to me.
No comments :
Post a Comment