3 Important Changes to Mortgage Rules Effective Today

By: Christopher Toste

3 Important Changes to Mortgage Rules Effective Today

Tags: Real Estate, Mortgage, Important Changes to Mortgage Rules, Canada, GTA, Toronto, Real Estate Market, Housing Market, New Home Buyers, Loans, Mortgage Rules, Economy, Borrowing, Foreign Ownership, Stress Testing Affordability, Insurance, Mortgage Insurance Rules, CMHC, Millennials, Baby Boomers

Last couple of weeks there has been a lot of buzz around the new mortgage rules that will be taking effect today. With a stagnant economy where every dollar counts, some buyers could find themselves with less borrowing power due to these new mortgage rules. So what exactly was announced?

The changes are an attempt to cool off what is believed to be an overheated Canadian real estate market, in particular Toronto and Vancouver. It is also an attempt to ensure that Canadians are not taking on commitments that they’re unable to sustain when the Canadian economy improves and interest rates potentially rise.

Here is a breakdown of the several important changes in the mortgage rules:

These are the several changes that will be taking place today and the true effect it will have on the housing market will need to be seen.

Presently the new rules would have the biggest impact on first time home buyers. There is no question that some young Canadians that were considering or ready to buy a home, may now have to wait until they make a higher income or have a stronger down payment. That being said, first time home buyers are a predominant group in our real estate market so I would expect an adjustment period at first. 

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