Wekweti, Northwest Territories · Member since 2015 · 3 posts · 0 votes
Hi! What are your thoughts on this: New rules for No-Down and Low-ratio Canadian Mortgages https://www.butlermortgage.ca/uncategorized/new-rules-for-no-down-and-low-ratio-canadian-mortgages/ I think its gonna be difficult to get mortgages for people now. This is said to come into effect by June 30. So there is going to be an income verification by a third party and also buyers who cannot provide a 5% down payment by themself will be eliminated from getting mortgage.
I don't think this is going to have any drastic effect on the market, as these rules have already been enforced by majority of lenders. It may weed out some sub prime borrowers who were on the on the fence already wrt being able to qualify for a mortgage, likely less than 1% of the population.
Until interest rates start rising, or there is a huge downturn in the economy resulting in massive job losses, Canadian banks and lenders will continue to fuel the real estate fire - by dishing out loans on extremely overvalued properties.