All real estate transactions are not equal. So, it is not really surprising to hear that the tightening up of regulations on consumers procuring mortgages is having a minimal effect on high-end transactions, CTVNews.ca reports.
Buyers in the market for seven-figure properties usually have more leeway when it comes to their available funds and qualifying for financing. So, a reduction in the maximum amortization period to 25 years from 30 years and the limiting of government-backed mortgage insurance to houses only under $1 million are not game-changers.
While these changes do result in buyers having to come up with higher down payments, it is not really as significant vital to affluent buyers as it is to average consumers.
Sales of single-family homes over $1 million were up by more than 60 per cent in Vancouver, Calgary and Toronto in the first half of the year compared with the last half of 2012, according to a report released by Sotheby's International Realty on Friday.