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Real Estate Homeward Blog

Market Update





The Toronto Real Estate Market experienced another record month in May.  This has motivated the government of Canada to make changes with respect to High Ratio Financing.  This is the 4th change to High Ratio Financing within the last 4 years.  The four major changes are indicated below:


  1. Amortization’s terms are reduced from 30 to 25 years for High Ratio Mortgages.
  2. High Ratio Refinancing is reduced from 85% to 80% of the value of the home.
  3. No High Ratio Financing for homes over $1,000,000.  These homes need 20% down.
  4. The GDS(Gross Debt Service) Ratio of 39% will now be enforced even on credit scores above 680. 


These rules will be in effect as of July 9/12.  In the event a buyer purchases a home before July 9/12 and closes before December 31/12, the above rules will not apply.


The Government of Canada implemented these changes to slow down the annual rate of price growth and to reduce the debt load Canadians are carrying.


Home sales were up by 11.1% in comparison to May 2011.  The average selling price was up by 6.5% compared to last May.



Home Market Indicator


May 2011                    May 2012                    % Change


Sales                                        9,766                          10,850                         (+11.1%)

Average Price                          $476,802                     $517,556                     (+6.5%)


Source: Toronto Real Estate Board




Buy & Sell Smart, Invest Wisely!



Roger Gallibois, B.Sc., P.Eng.                                               



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The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.

Information is deemed reliable but is not guaranteed accurate by TREB.

Toronto Real Estate Board - IDX Last Updated: 9/15/2019 8:24:27 AM