Mortgage rules could cool hot market
First-time homebuyers could need to earn as much as $500 more a month and would have to pay an extra $209 toward their mortgage each month under new mortgage rules that the federal government announced Thursday.
The recently announced changes to the mortgage lending process has sparked significant debate surrounding the effects to the housing market, specifically higher priced areas like Vancouver and Toronto.
Many analysts believe the new regulations will impact first-time buyers the most, presenting them with the requirement to qualify under a higher income, and/or afford a higher mortgage payment. First-time buyers are now representing a large percentage of Canadian mortgage applicants, and these new lending requirements could halt home ownership for many of them.
Any buyer who is unsure about their ability to qualify under the new regulations is strongly urged to seek the advice of a professional Canadian Mortgage Broker. Mortgage Brokers can assess individual financial situations to find the mortgage solution that is the most suitable.