Monday, September 6, 2010
Canadian Mortgage Rules Changing?
I read a recent article at Macleans.ca regarding all the housing bubble talk. They suggest that we could see a soft landing of 8-10% in House prices. They then go on to say we could see a rebound in prices of homes if the Canadian government lessens up the qualifying rules again. I do agree with them. I believe that the decline of home sales is related to two major factors. One being the HST and lack of good information in BC. Not to mention the constant media attention here in BC. Second is the rule changes in April that the Canadian government for qualifying for mortgages in Canada. These rule changes took about 12-18%(my opinion only) of the potential buyers right out of the marketplace. The realty is that Canada does not have enough of a population to support the rule changes and HST in a 60 day period. Look for the variable and self employed rule changes to be changed again this fall.