Date Posted: January 29, 2019
Recent housing data for 2018 showed indications that the stress test and other federal measures have impacted the ability for some millennials to get into the housing market. Though it seems like the federal government has some options to help this generation enter a market that is showing rising borrowing costs and home prices.
Although no distinct measures have been released, with the election this year many of the parties have started to express positions on housing affordability.
Stricter housing market rules have become a hot topic with the most recent stress test of 2018 in the forefront.
“There’s a lot of folks that just don’t qualify to purchase anymore at the bottom end of that ladder,” said Paul Taylor, president and CEO of Mortgage Professionals Canada.
Taylor said the stress tests have succeeded in taking some of the froth out of the market and he believes the time has come for Ottawa to loosen them. In recent meetings with federal officials, he said he has recommended the reintroduction of insurance on 30-year amortization mortgages as a targeted way to help people at the lower end.”
Wondering if you qualify? Contact your Mortgage Broker today.