StoryLine By CondoNow
According to several different comments recently released from various banking and mortgage experts, it appears the levels of mortgage debt in Toronto are at very good levels. What this means for the Toronto condo market is that it appears very few people are purchasing new condos that can’t afford them. Making the risk of a market crash very unlikely.
In a recent study, mortgage brokers in Toronto have said that over half of their clients have bought condos that fit well within their budgets. Approximately 33% of their clients have even purchased a condo that is priced less than what they can afford. Only 8% of their clients were stretching their budget and another 9% purchased a more expensive house than they could afford.
The studies have also shown that the number of people paying high interest rate loans on a condo in Toronto is less than 5%, meaning not too many people need to think about going to a secondary mortgage market, which is good news for condo investors. Most people are able to find a traditional mortgage with really low mortgage rates, which is helping to continue a strong buying trend.
The psychological risk of having a mortgage is also very low, because the market is good right now. At the moment, if any of the condos were to be put up for sale, there would be many people available and willing to purchase them fast and for a good price.
All of this data looked at holistically shows that the current trends look positive. Supporting the idea that investing in a condo in Toronto is a positive investment strategy.
