These changes affect the qualification rules
There are two types of buyers that the bank is attempting to address; buyers purchasing properties more than they can afford and investors flipping properties
The Bank of Canada feels there no definitive signs of a housing bubble , so they are slowing a 'NON' bubble.
How have they tightened the rules:
- Buyers with less than 20% downpayment must show they can afford a 5 year mortgage
- Investors must have minimum 20% downpayment
The changes take effect in mid April and some lenders may implement sooner
All the best!