"Until the dust clears, we are no longer making loans."
And save them from themselves.
They may need to buy lower-priced homes or increase their down payments.
The long-running seller's market will slowly become a buyer's market due to lack of affordability, which in turn could result in decreased housing prices -- as people will no longer be able to afford homes in what were previously known as "hot markets."
Some intended. Some not.
Under new mortgage rules just announced by Finance Minister Bill Morneau, all insured mortgage borrowers must now pass a "stress test" proving that they can carry a mortgage at a realistic rate (the Bank of Canada's conventional five-year fixed posted rate), and not simply the "teaser" rate offered for a short period by the mortgage lender.
Proposal would delay home ownership dreams, critics say.
Regardless, Finance Minister Bill Morneau seems optimistic.
The majority of the impact will fall on first-time buyers.
Juanita was already taking care of her 87-year-old mother when her husband had a heart attack so serious that he couldn’t