Informative article by Erica Alini, National Online Journalist on the implications of the new mortgage rules. "Come Jan. 1, 2018, Canadians getting, renewing or refinancing a mortgage might have to prove that they would be able to cope with interest rates substantially higher than their contract rate. New rules by Canada’s federal financial regulator announced in October mean that even borrowers with a down payment of 20 per cent or more will now face a stress test, as has been the case since January of 2017, for applicants with smaller down payments who require mortgage insurance. Ottawa has already moved to tighten the rules around the mortgage market six times since July 2008, with a seri
Others think extra debt should be avoided: poll In January 2017, the government of B.C. started offering 25-year loans for first-time homebuyers applying for mortgages. The B.C. Home Owner Mortgage and Equity (HOME) Partnership program will meet the buyer’s contribution up to 5 percent of the home’s purchase price, to a maximum of $37,500. The loans are interest- and payment-free for the first five years, after which they can be repaid in full or over 20 years at the prevailing rate of interest. On the other hand, the Bank of Canada has warned about the high level of Canadians’ debts and exposure to the housing market, and the federal government has brought in measures to slow the housing se
“Robust housing demand in 2017 was underpinned by a strong economy, employment growth and rising wages," said Cameron Muir, BCREA Chief Economist. "Above trend migration, both international and inter-provincial, also bolstered housing demand, while broader demographic fundamentals added fuel to condominium sales in urban centres and to all home types in retirement-oriented communities." For full article click here:
