New Rules could disqualify 10% of buyers
New mortgage rules could disqualify 10% of buyers says Bank of Canada
New mortgage stress tests coming in 2018 could disqualify about 10% of prospective home buyers with larger down payments ineligible for a loan according to the Bank of Canada.
The numbers are based on the proportion of low-ratio mortgages issued between mid-2016 and mid-2017 that would have been disqualified if the new mortgage rules had already been in force.
The tighter qualifying standard would have cut off 10% of borrowers with a down payment of 20% or more, equivalent to $15 billion worth of mortgages.
Real estate company RE/MAX recently conducted a survey asking Canadians how aware they are of new regulations and their impact on homebuyers.
The results found that over one-third of Canadians (37%) were not even aware of the changes or how they will affect their ability to purchase a property in the future.
While 58% of Canadians were aware of the new OSFI stress test regulations, that group was made of three separate opinions:
- 27% don’t believe it will impact the type of property they purchase in the future
- 18% believe it will impact the type of property they purchase in the future
- 13% are unsure of how the new regulations will affect their ability to purchase a property
The survey also found that nearly half (48%) of Canadians are considering purchasing a home in the next five years.
Article complements of Kelowna Now