Here's our take on....
Canada's New Mortgage Rules
* In addition to qualifying for a loan, insured mortgages will have to meet a stress-test (even if you have more than 20 % for a downpayment).
* No more than 39% of your total income can be spent on home carrying costs such as mortgage, heat and taxes
*Currently, any financial gain from selling your primary residence is tax-free and does not have to be reported as income. As of this tax year, the capital gains tax is still waived, but the sale of the primary residence must be reported at tax time to the Canada Revenue Agency
*In the future the Canadian government will be looking to lenders to bare some of the burden for these loans. Currently, it is responsible for 100% of a defaulted loan.
Experts are not in agreement over whether or not these rules will impact the real estate market in 2017
Learn more about why these rules are being put in place!