Stress Test Effects Are Becoming Apparent

According to a recent Re/Max survey, one in three homebuyers are putting off plans to purchase a home given the new mortgage rules. Given the higher rates at which clients now need to qualify for a mortgage, many first time homebuyers are seeing a loss in purchasing power that they didn’t have before. Some home buyers have had to re-evaluate their expectations on size of the home they can afford and in what neighbourhood.

“Canadian housing starts dipped to 225,213 units in March compared with 231,026 in February, as construction of urban buildings like apartments and condominiums decreased, the Canada Mortgage and Housing Corp. said Tuesday.”

Ottawa is currently experiencing a sellers’ market this spring and demand is remaining strong for those homes that are available.

To read the Financial Post Article, click here.

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