Effective July 9, 2012 mortgage shoppers with less than 20% equity will be entitled to, at maximum, a 25
year amortization as opposed to the 30 year period previous allowed. This change will cut buying power
and, yet again, hurt first time home buyers who have already been hit with greater and greater lending
restrictions. This new regulation may yet extend the already lengthy housing recession.
While it is predicted there will be no further dips in house value in the Vernon area of British Columbia
these new restrictions may make it difficult for those sellers who were previously first time home buyers
and are now looking to move one tier up to a $300,000 to $400,000 house in East Hill to do so with new
first time home buyers now more unable than before to purchase the their homes.
Real Estate in East Hill did not suffer from June 1, 2012 to June 30, 2012, with the sales of 18 properties.
It is now time to see if those numbers maintain with a more restrictive lending market.