New Mortgage Lending Rules - Stress Test

Wednesday Nov 15th, 2017

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Now the stress test that was previously only being used on borrowers with less than 20% down will apply to all borrowers, regardless how much more they have for a downpayment.
 
Thanks to the changes made by the Office of the Superindent of Financial Institutions, effective January 1st, 2018 the average purchasing power of home buyers will decrease by 16%. Chris 
 
Is the tightening the lending rules a sign of higher interest rates in the near future?
 
Does the government not trust the fact that the real estate market adjusts itself, without their intervention?
 
House prices could not continue to rise as the size of the buyer pool would shrink so much that the sellers would not get what they were asking. 
 
If there aren't any buyers, then house prices will decrease until they become attractive and affordable to buyers.
 
Are we getting all the information from our government?
 
These new rules also apply to mortgage renewals.
 
 
New mortgage qualifying for purchase with 20% down 
 
Household Income    Purchasing Power TODAY     Purchasing Power JAN 1/18
$60,000.00                $409,626.00                            $334,323.00
$100,000.00              $682,710.00                            $557,206.00
$150,000.00              $1,024,065.00                         $835,809.00
$200,000.00              $1,365,420.00                         $1,114,411.00

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