New Lending Rules effective immediately

1. Any Buyers looking to purchase a home with less than 20% down

will no longer be qualifying at their contract rate (for example 5

year fixed at 2.39%, but rather at the banks five your postage rate

(currently 4.64%).

2. In short this will reduce the Buyers purchasing power and

reduce the # of Buyers available in the expensive Markets like

Vancouver and Toronto

3. Economists still expect to see a strong market, r but with 2-3

offers per property instead of 10-20.

4. Hopefully with slightly fewer Buyers competing, home price

increases will start to stabilize which will help everyone in the

long run.

5. This may also have the unintended consequences of a mini

boom in the suburbs which have lower prices.

 6.In addition the government has closed the loophole of people selling investment

property without claiming capital gains

7.All Sellers will now have to report the sale of “any” real estate on their tax returns even

if the home was used as a principle residence.