TORONTO -- In an attempt to try and cool down the overheated housing market, the federal government is making it tougher to get a mortgage starting June 1.. Starting Tuesday, the new calculation of the minimum qualifying rate for uninsured mortgages will be set at either the mortgage contract rate plus two per cent or 5.25 per cent — whichever one is greater.According to lowestrates.ca, the current lowest five-year fixed mortgage is 1.69 per cent as of Tuesday afternoon.
While interest rates are currently at record lows as a result of the pandemic, they're not guaranteed to stay that way over the long term. In addition to cooling demand, the feds hope that this additional stress test will protect buyers who may struggle to make their mortgage payments if interest rates increase in the future.
"It's definitely going to make first-time homebuyers have to rethink the budget and what they were spending in the home," Morrison told CTV News Channel on Tuesday. "I think what we might see a lot more of right now is parents being asked to cosign on properties so that their kids can actually get the property in the first place."
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oh yes this will stop the off shore buyers who are paying cash ...you dummies.
renters wake up! our future is being destroyed. these policies arent meant to fix anything. they are just cosmetics which doesn't help us at all.
More landlord ownership. The purse swells for the oligarchs, others not so much.
No, all they have done is give foreign buyers less competition
Thats punitive. Every chance It gets the federal government id showing its true colours toward a dictatorship!
It’s unbelievable that the government can do that. People that are building condominiums and apartments going to same thing? I will still have to live in my apartment for wild . Unless I can get a government job or a balloon pension. That is why people have no money to live .
It won’t work 😎
Budgeting doesn’t work because unexpected expenses always blow you off course. Practical ways to stop money worries ...how to save and invest
They should of never dropped the rates so low!
It’s time we defund banks!
Even harder now for first time home buyers!!!
JustinTrudeau , you created the largest gap in canadian history between poor and rich. You are trying to hide it by giving little subsidies to poor and doing propaganda in twitter with all your ministers. We are smart enough to see all and the poor wont vote for you any more.
Nothing to worry about
Is a joke.