New mortgage Rules

What is your thought on the new mortgage rule and the capital gain exemption loophole fill coming into effect on October 17, 2016?
I’m reading a lot of different and confusing content on social media and thought I put together something logical so that you can make an informed decision when it comes to buying, selling or investing in real estate in the GTA. So, the new rules are aimed to cool the super-hot housing market in the GTA. Do you really think that these rules will close the gap? I strongly believe that this will have very little impact on the housing market and the underlying reason is that we are in short supply. Supply is the key word here. If the government really wants to close the gap of rising home prices, then what it needs to do is reduce the processing delays of permits to build homes and create supply for families, first time buyers and renters which will organically cool the housing market without any intervention. I really don’t see another way of closing this gap as any significant artificial intervention could lead to an economic crisis. The Canadian economy continues to receive a big boost from the housing market. Now that the energy sector is not the major economic driver, the housing sector is more essential than ever. Thus, I hope our government makes some prudent decisions to control the housing market. Hope this will help those interested in real estate put some perspective around this topic. 

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Raj Kugananthan

Raj Kugananthan

Sales Representative
CENTURY 21 Titans Realty Inc., Brokerage*
Contact Me

Blog Archives