The Feds have been dreaming up ways for quite some time to slow down the Hot Housing Market in the GTA and Vancouver. Well Bill Morneau our finance minister is going to anounce new measures today that will impact Canadians qualifying for a Mortgage. This will make it more difficult for 1st-time buyers and young families in my humble opinon. Changes are definetly required to slow down price growth but I believe there are better ways to acomplish this. If you were considering refinancing your home - time is of the essence as these changes are effective as of Oct. 17th 2016.
If you have any questions don't hesitate to call me!
Oct. 3, 2016 Robert Mclister
New Department of Finance (DoF) rules will hit the mortgage market hard, but consumers will take the brunt of the blow. The two big changes: 1) The qualification rate will now apply to all insured mortgages (even high- and low-LTV 5-year fixed terms, which is not the case today), effective Oct. 17. 2) Regulators are banning a wide array of mortgages from being insured, effective Nov. 30. read more.......
Mortgage Broker News
Justin da Rosa | 03 Oct 2016
Finance Minister Bill Morneau announced three new housing measures aimed at protecting the nation’s housing industry.
Those preventative measures are;
“Canadians have told us they are concerned about growing household debt and rapidly rising house prices in some of our biggest cities, particularly in markets like Toronto and Vancouver. These concerns have grown over many years, and there are no quick fixes,” Minister of Finance Bill Morneau said. “The federal government plays an important role in ensuring that housing markets are stable and function efficiently.
- Standardizing lending criteria for high- and low-ratio mortgages, including a mortgage stress test
- Closing tax loopholes for capital gains exemptions on principal residence sales
- Consulting with industry stakeholders to ensure risk is properly distributed. This may include lender risk sharing, Morneau told reporters
“My colleagues and I are committed to continuing to work with provinces and municipalities to address the concerns of middle class families, and to ensure Canada’s housing markets and financial system remain strong, stable and resilient well into the future.”
During a press conference to announce the changes, Morneau reiterated numerous times that he believes the housing market is stable.