Mortgage and Housing Corporation
The objective of that policy is to reduce mortgage lending. It means that a potential home buyer who can comfortably afford the costs of buying a home (based on their actual mortgage interest rate, which will usually be less than three per cent) might not be able to get financing, because of a new, very high "stress-test" hurdle (using an interest rate that is currently 4.64 per cent, and far above actual market rates).
Hate to be one of those folk that B.C. Housing Minister Rich Coleman believes has nothing better to do than get up and whine every day, but the B.C. government's affordable housing plan announced last week falls short. Sorry, someone had to say it.
CMHC finds evidence of trouble in eight Canadian housing markets.
According to the Canadian Payroll Association's survey of employed Canadians released in advance of this week's festivities, 53 per cent of British Columbians reported that "it would be difficult to meet their financial obligations if their pay cheque was delayed by even a single week."
The majority of the impact will fall on first-time buyers.
Toronto's housing market is flashing red warning signs, but Vancouver's has only a "moderate" risk of overly high prices.
New limits may force more borrowers to approach alternative lenders as a source for financing and may increase the percentage of parents taking out a second loan on their own home to help their adult children move into the housing market.
A prominent mortgage expert says the federal Liberal government is considering raising the minimum down payment needed to
Canadian house prices would drop 26 per cent on average if oil fell to $35 a barrel and stayed there for five years, says
You’ve heard it before: Canadian housing is in a bubble, and a price crash is headed our way. It’s been said enough times