Stiffer guidelines to mortgage qualifications
Canadian homebuyers will now need to meet stiffer guidelines to qualify for a mortgage with a regulated mortgage lender.
Uninsured mortgage customers now need to qualify using a new minimum qualifying rate, mortgage lenders must enhance their loan-to-value measurements and limits, and restrictions are placed on certain lending arrangements that are designed, or appear to be designed, to avoid loan-to-value limits.
The changes took effect January 1st.
Despite the changes being made, realtor Bob Quinlan does not believe this will affect residents all that much.
“A lot of our homes are very, very affordable and the incomes that people have in this area, on average, are a lot higher to be able to afford those lower mortgages as opposed to some places like Calgary, Vancouver, or Edmonton.”
Quinlan says he doesn’t believe the changes are done yet.
“I truly believe that we’re going to have a little more tinkering,” Quinlan says.
“Things that will take away from all the extra advantages for people handed out from the government.”
Quinlan says even with the changes, he believes we are primed for a strong 2018.