Over the last few days, I’ve fielded calls from concerned clients who are buying a house and want to know the impact of the recent regulatory changes to Canada’s Housing Rules that come in to effect in late October. I’m sharing a statement provided to me yesterday from our industry lobby group Mortgage Professionals Canada. Also, the lenders that we work with are just tabling this new regulatory changes so there will be more information to come.
The bottom line is that I believe it will impact most buyers who are considering a fixed rate mortgage and putting less than 20% as a down payment. Their buying power will likely decrease by about 5% – 10%. For example if you were pre-approved for a $400K purchase with 5% as a down payment you may likely now only be approved for a $375K purchase.
Please call me if you’d like to discuss you’re specific situation. Sandra 519-763-3900 ext. 1001.
Attached are some links to our information sources and some other articles regarding the new changes.