Kristina Eng  BA  MA  MCNE  CIPS

Proposed changes to mortgage qualifications are anticipated to take effect in January 2018.

How you may be affected?

1. The major change is the introduction of the Federal Government's required new 'mortgage stress test'. Essentially all borrowers, regardless of how much down payment, would have to qualify at a rate 2% above the contract rate. As of today that rate is 5.34% for a 5 year fixed term. On average it is anticipated that borrowers will qualify for 25% less than what you would today.  ...

There is continuing pressure from buyers for “more affordable” housing – condos up to about $500,000, townhouses up to about $750,000 (threshold prices vary by area).

The strong demand is coming from all sectors: families, downsizers, first time buyers, divorces, and investors. Given the limited supply of inventory in this range compared to demand, these types of housing in pretty much all areas of the lower mainland continue to get multiple offers and move quickly.

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