New Mortgage Rules will ‘reduce the risk’ of a housing crash in Canada. The housing market remains hot, but healthy. The new rules will regulate mortgages to ensure that the economy will not be harmed with this hot market that we are currently experiencing. Ashley Sidler is in the studio with Rob Golfi and Rick Zamperin to discuss this and other local real estate topics. Email your questions to firstname.lastname@example.org.
The new mortgage-rate “stress test” to ensures that buyers
can afford to get into the market in the first place and meet their payments when lending levels begin to rise. Buyers will need to qualify at a higher interest rate so that the property can be more affordable to the buyer even though their actual interest rate is the going rate. If there is a shift in interest rates in the upward direction, it will be less likely that the buyer will be unable to afford living in their home. Buyers will have to now look for more affordable homes.
Overall, these new measures should reduce the risk to the Canadian economy form the possible correction
that we may see in the Vancouver and Toronto markets.