Bank of Montreal is the first large bank to stiffen rules against Canadian's after tariffs placed by Trump

BMO, one of Canada's major banks, is tightening its mortgage rules for self-employed Canadians in certain industries. This change will impact hundreds of thousands working in fields like steel, aluminum, and other sectors that BMO considers "high risk."

Under the new policy, self-employed borrowers in these high-risk industries will need to keep their monthly debt payments below 42% of their income to qualify for a mortgage. This is down from the previous 45% threshold.

While a 2% difference may not seem like much, it can have a big impact - especially in pricey housing markets like Toronto. For example, a household earning $200,000 per year would now only qualify to buy a home costing up to $1.27 million after a 20% down payment. That's about $180,000 less than the average price of a detached home in the city.

BMO says it's standard practice to consider broader economic factors when assessing mortgage applications. One expert told the Globe and Mail that the change makes sense, as it will help limit lending to those at a higher risk of defaulting.

While BMO is the only bank to announce this type of policy change so far publicly, the expert believes other lenders likely have similar rules in place for self-employed borrowers in high-risk industries.

This tighter mortgage qualification for certain self-employed Canadians is the latest sign that banks are being more cautious as economic uncertainty looms. Those who work for themselves in affected sectors may need to adjust their home-buying plans accordingly.

As your real estate partner, I can help you explore alternative financing options, such as seeking pre-approval from other lenders, that may better suit your situation. It's essential to stay informed and proactive in the current market conditions. Together, we can devise a strategic plan to achieve your homeownership goals, whether that involves finding a property within the new mortgage guidelines or considering other viable options. Please don't hesitate to reach out with any further questions or concerns.

Brought for you by: Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country

Unlock Your Dream Property: The 3-4 Must-Haves That Matter Most

Finding Your Dream Property by using priority decision making

Buying a new home can be both exciting and overwhelming. Where do you even start? Many people begin by making a giant wish list of every possible feature they could want. But that approach often leads to frustration when the "perfect" home remains elusive.

Instead of getting bogged down in a never-ending list, focus on your 3 or 4 core must-haves. These are the essential elements that you absolutely can't live without. For example, it might be:

1. A safe, family-friendly neighbourhood 
2. A good-sized backyard
3. The correct number of bedrooms and bathrooms

Or perhaps your top priorities are:

1. Staying within a specific price range or budget
2. Finding the perfect neighborhood or location
3. Having a garage or other key feature

Sure, your list may include other "nice-to-have" features, like a mature tree or a move-in-ready condition. But by honing in on your top 3-4 priorities, you can streamline your home search and increase your chances of finding that dream home.

Another benefit of this approach is that it will give you a clearer sense of the price range for homes with your desired characteristics. That way, you can get pre-approved for financing and be ready to make a strong offer when the right property comes along.

As an experienced real estate agent, I'm here to guide you through every step of the home-buying process. If you're ready to find your next dream home, call me today at 705-927-6236. I'll use my expertise to help you navigate the market and secure the perfect property.

Call us today for a clear path. We will look after you. 705-927-6236

Brought for you by: Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country

Why Won't My House/Property Sell?

Why Won't My Property Sell?

Ever driven by a home for sale for an extended period and wondered why no one has bought it yet? You may be worried that your own house won't sell when you go to list it.

There are several common reasons a house becomes hard to sell:

1. Overpricing

The number one reason a house is difficult to sell is an unrealistic asking price. Overpricing a home can scare away potential buyers. It's essential to price your home competitively based on recent comparable sales in the area. 

2. Poor Presentation

Your home isn't showing well to buyers. Poor staging, outdated decor, or a lack of curb appeal can make a home unappealing. Decluttering, deep cleaning, and minor cosmetic updates can help your home show its best.

3. Lack of Promotion

Your home may not be getting enough exposure to potential buyers. Proper promotion includes more than just a sign on your front lawn. Websites, digital ads, print ads, and open houses are valuable tools for promoting your home's listing.

4. Location or Condition Issues

Homes in undesirable locations or needing major repairs may struggle to attract buyers. Factors like noisy surroundings, flood risk, or outdated systems can be turnoffs for potential purchasers.

5. You need to give it time

If you researched the home's value, and your were provided a CMA report from your Realtor, the same CMA report will also give you an average days on the market to sell. Sometimes, it just takes time to sell. Use the average days on the market to provide you with a timeline to realistically give to sell the home. If it is well above the days on the market, relook at the numbers 1 to 4 above.

The Brad Sinclair Team has the Iguide system, a great tool for giving buyers a virtual look at your home before they book a showing. We also have a huge database of potential buyers and list our properties on the Toronto Real Estate Board and the Local Real Estate Board for more exposure. We also use digital marketing to get your listing in front of more eyes.

When you work with us, you can count on our team to leverage our extensive resources and expertise to get your property sold quickly and for the best possible price. Contact us today at 705-927-6236 to learn more about how we can take the stress out of selling your property.

Brought for you by: Your local Realtor®

If you are looking to either Buy or Sell, contact me at 705-927-6236

Brad Sinclair, Sales Representative

Team Lead at The Brad Sinclair Team

Royal Heritage Realty

Your inside source to cottage country