Fed mortgage changes inject uncertainty into real estate market, CREA says
The federal government’s recent changes to mortgage lending rules have injected uncertainty into the real estate market, the president of the Canadian Real Estate Association said Friday.
The measures — which include an expansion of a stress test for borrowers that takes effect Monday — could deter first-time homebuyers, said Cliff Iverson, who represents more than 100,000 real estate brokers across the country.
“The finance minister’s recent changes to regulations affecting mortgage lending has added to housing market uncertainty among buyers and sellers,” Iverson said in a news release.
“For first-time homebuyers, the stress test for those who need mortgage default insurance will cause them to rethink how much home they can afford to buy.”