As I’m sure you know, the housing market is constantly changing and if you’re someone who is buying, selling, or working in the field, it is always a good idea to stay on top of it.
As a mortgage agent, I am seeing many changes to the values of homes and I wanted to share some important information for any realtor, buyer, or seller in today’s market.
I am hearing a lot of noise from appraisers that values are declining at a fast rate, which is not surprising as the Bank of Canada fights inflation. Because of this, I am urging everyone to have a financing condition section on their offers in the event the property’s value isn’t supported by the lender.
What happens if your value isn’t supported? If your value isn’t supported by the lender, you are expected to come up with the difference in cash or you risk losing the house or not being approved for the mortgage itself.
What is a financing condition? It is there to protect both the buyer and the seller. It is a clause in your offer to purchase that gives you a period of time to confirm you are able to get a mortgage approval for the property you are buying.
There is no need to worry, but I always recommend staying informed and educated, especially in this market! As your mortgage agent, this is what I’m here for – to share my knowledge with you. If you’d like to have a more in-depth understanding of this, feel free to book a call!