New Mortgage Rules -"Stress Test"

The new rules have been in place now for over two weeks and we have seen no change in our local market in terms of activity.  There is still some confusion regarding the changes but from a Buyers prospective the great interest rates that banks are offering are still available. The change really only means that a buyer needs to qualify (be able to afford) a mortgage at a higher rate just as a precaution in the event interest rate were to increase.  The net effect to a Buyer is that they may have to Buy a home at a slightly lower price point.  It appears that the rules are targeting markets like Toronto and Vancouver which are increasing at an unprecedented rate.

 

Bill Scribilo

Bill Scribilo

Broker of Record
CENTURY 21 Reynard Real Estate Ltd., Brokerage*
Contact Me

Blog Archives