Rental Options in GTA

For an individual, it is very important to be clear about what to rent and how to rent a property. Many people face difficulties in searching for the rentals in GTA. To make your job easy, it is good that you should know about all type of options available for you in the market. Here are some of the options which are available for you in GTA.

1. Houses
This is one of the best options if you want to live in a residential locality. With increasing demand, many people have converted a fraction of their home into one or two room apartments. While most of these new apartments are part of the basement, you can also find houses which are converted into several apartments.

2. Apartment buildings
These types of buildings are mostly owned by an organization. Most of these buildings are older as not many new buildings are built recently. This condition is there because many people today want to live in houses rather than the building apartments. Though, you can still find this type of rentals if you want.

3. Condos:
The area is filled with condos. These are among the best options to buy because of the facilities they provide. The condos provide you many amenities like gym, pool, party rooms etc. Many of these condos are owned by the investors who rent them. You can directly rent a condo from the owner but you have to follow the rules of the condominium.

Finding a Rental
Though there are many online resources like Craigslist and Kijiji, there are possibilities the advertisements and classifieds on these platforms are scams. It is always advisable that you should not deposit any money before seeing the apartment and confirming that the person you are dealing with actually owns it.

Tips to get a good rental apartment
– Neighbors:
It is always good to collect some information about the people in the locality you are going to stay in.

– No lies in the application:
You should always be spot on with the information you provide as a tenant to the owner. The lies in the information provided can lead to future differences between you and landlord.

– Flexible thinking:
It is very important to keep a broad mind as sometimes it is not easy to get affordable apartments at good locations.

Your rights as a Tenant:
For a person renting a property, it is very important to know his/her rights as a tenant. Some of the rights are mentioned below:
Pets- you can keep a pet unless your landlord has mentioned it in the first place when you rented the apartment.

Right to access property- your landlord can only enter your property within 24 hours of notice.

Selling of property by the landlord- if you have a written contract your landlord cannot force you to leave the apartment even if he/she sells the property.
Other than the rights mentioned there are many other rights under the residential tenancy act.

So, if you are planning to lease a property than Jas is the right person to consult. With his in-depth knowledge about the property market, he will ensure that you get a desirable property at affordable rates.

New Mortgage rules Effects

Effective January 2018, Canada will be implementing new mortgage rules which are going to affect all homebuyers in the region.
New Mortgage Rule of 2018

According to the new rules, a buyer is eligible for a mortgage at a rate that is higher of the two either 200 basis points (2%) greater than the mortgage rate they have qualified for or Bank of Canada’s five-year benchmark rate (currently 4.99%).

As per the new rules, home buyers will qualify at a rate that is 2% higher than their negotiated contract rate. This ensures that majority of the homeowners will pay a minimum of 20% down payment besides the sustainable ongoing payments.

These rules confirm that banks are providing loans to individuals who are capable of managing them with an increased rate of interest. This decreases the dependence of banks on loan-to-value calculations in markets where the prices of residential property are showing a rapid rise.
Who will feel the impact of these new rules?
Home-buyers who do not fulfill the criteria for availing bank loans. They will have to avail loans from alternative lenders at probably higher rates of interest.

Home buyers who would be required to meet the bank lending criteria, but now can qualify at an above contract level or 2%.
All those who are looking to refinance their existing homes or looking to purchase a property at 20% down payment.
How will this impact home buyers and sellers?
It is expected that the purchasing power of home buyers will be reduced.
As per the view of economists on this matter, the demand for housing will also see a downward trend.

Negotiating refinancing of an existing home will become difficult. If while renewing, you are with your existing lender then you are exempted from qualifying for these rules. However, if you change your lender during mortgage renewal you will have to verify your eligibility.
The options available for first-time buyers are they can either look to increase their down payment to qualify or add a co-signer who has an income to the loan. If they are not able to fulfill these criteria, they will have to wait a little longer to purchase.

Because of the reduced purchasing power, buyers may opt for economical options such as condos or townhouses instead of detached homes.
If you have been saving up to purchase your dream home in Greater Toronto Area, don’t get disheartened by these complicated rules! Jas will help you realize your dreams! Jas is a leading realtor in GTA who is well experienced in the field. He understands your needs and the rules and regulations impacting the property market. He will advise and suggest suitable properties to you.