Changes are coming April 6, 2020 to the Mortgage Stress Test Rules. In light of this, we have been researching information and looking to others for their take on things to understand the full scope and impact of the changes.
The changes are contrary to the government’s newly introduced FTHBI program in that it will cause sales to soar and prices to inflate across the country.
We asked asked mortgage expert, Sabeena Bubber of Xeva Mortgage, for her opinion, “They are giving us optics of improvement but it has no big material impact in Vancouver. Paul Taylor represents our national association and he says it best. The government did not do enough to help.”
Sabeena referred us to a BNN Bloomberg video that quotes Paul Taylor, president and CEO of Mortgage Professionals Canada. You can watch the entire video here. It is very informative. Basically, the government has improved things about 30 basis points where we needed an improvement of 75 basis points to effect a change.
Better Dwelling released an informative article this morning. We follow Better Dwelling closely to keep current on economic impacts and changes to the real estate market. Definitely worth a read (click here).
“ In plain english, this means borrowers will see the maximum mortgage amount increase.”
“The new measure, which goes into effect April 6, is set to ease the qualifying rate from some lenders from the current 5.19 per cent to 4.79 per cent.”
Here is the link to the Business in Vancouver article.
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