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
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
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.