Will New Mortgage Requirements Affect Buying a Home in Peterborough?

The federal government recently announced new mortgage requirements that they call "preventative measures for a healthy, competitive and stable housing market". While the tightening of requirements for foreign investors is gaining much attention, it is the new "stress test" on the ability to pay a mortgage that may have the most impact. 

New tighter mortgage rules are aiming to protect all of us in the event mortgage rates rise. The low rates we have been enjoying for more than a decade are bound to change. For some, you might have another 5 years to enjoy your current rate.  But for the families that have a renewal in the near future or those who are just entering the market, they are going to be crossing their fingers that rates won't go up.  However, if the banks start pre-qualifying you at a higher rate, both you and your mortgage lender can be assured that when rates do go up, you will be able to pay.

Now some of us might complain about how this is going to effect many buyers from buying a home, or it might slow down the market.  My stand-point is that Canada has had one the strongest housing markets in the world, so we must be doing something right.  Successive governments have put in place rules that help prevent the kind of volatility we have seen south of the border.  

As for it slowing the real estate market in Peterborough, I don't believe it's likely in the near future.  There is a large demand for properties in the Peterborough area, and although houses are selling for much more than asking price, the average home prices are still much lower than the GTA or Durham. It seems Peterborough is the place to be, and a great place to move to.

For more information on the new rules visit:





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