With elections six months away, Canadian home buyers are hopeful for a solution to address the housing affordability issue and so are we. It’s undeniable that certain rule changes have made housing unaffordable for several home buyers across Canada, but these changes not only affect those trying to buy, they also affect Canadians who have been home owners for several years.
Often referred to as the “stress test”, home buyers and home owners are required to qualify for a mortgage on the greater of either: 2% above their contracted rate or the posted benchmark rate. This mortgage stress test drastically limits funds available to those trying to buy, refinance and even renew their homes. It is likely that our government will take action to hopefully make housing affordable again, we just don’t know how beneficial those changes will be to Canadians.