There’s a misconception that the Kelowna real estate market grinds to a halt in the winter months, but that is actually a myth.
Sure, if you look at the rhythm of the year, there are definitely less deals in the colder months versus the warmer months, but there are still plenty of properties being bought and sold at this time of year.
Moreover, there’s added incentive this year. You’ve probably heard about the new ‘stress test’ that is being implemented by the Office of the Superintendent of Financial Institutions Canada (OSFI) for uninsured mortgages as of January 1st, 2018.
In a nutshell, those putting 20% (or more) down will need to qualify at a higher interest rate (similar legislation has already been implemented for insured mortgages – less than 20% down). In short, you’ll need to qualify at two points higher than the bank’s posted mortgage interest rate.
Right off the bat, this will reduce buying power by around 20%. For example, if you have a 20% down payment and currently qualify for a mortgage of $700,000, your buying power will fall to $560,000 as of January 1st.
With that in mind, if you’ve been waiting to make a move on buying into, or investing in, Kelowna real estate, now is the time. It is certainly worth taking a look to see what is out there, as the market remains very healthy at the moment.
If you’re not in a position to purchase before January 1st, there’s no reason to panic. However, you should be aware of the upcoming changes and plan accordingly.
When it comes to real estate, there’s no ‘one size fits all’ as everyone’s situation is different, but the market is well worth another look right now. Whether you’re thinking of buying, selling or investing in Kelowna real estate, please contact us. We’ll be happy to help.