Will new mortgage rules trigger winter buying?

Will new mortgage rules trigger winter buying?

The new rules being introduced by the Canadian Real Estate Association could be just the incentive for young home-buyers to get off the fence, as indicated in today’s Globe and Mail…

The Canadian Real Estate Association is concerned that changes to mortgage rules will force Canadians to buy homes through the traditionally slow winter market rather than waiting until the spring.

The federal government said that in 60 days, Canadians will no longer be able to obtain mortgages that have an amortization period of longer than 30 years. This will raise mortgage payments on a typical resale home by some $1,400 a year compared to the 35 year amortization rate available today.

With interest rates expected to move higher by the summer, CREA vice-president of government relations Randall McCauley said many would-be buyers could be tempted to jump into the market early to secure lower payments.

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