Mortgage Rules Could Leave Millennials Hanging!
Purchasing power" describes a consumer's ability to buy goods and services. In this case, it means the amount they can borrow to buy a home.
Such a household can currently buy a $505,000 home with a five per cent down payment.
But that wouldn't be possible under the new rules because of a "stress test" requiring all insured mortgages, which have down payments of less than 20 per cent, to be qualified at higher rates, the BCREA said.
This hypothetical family could only buy a $405,000 property under the new rules — $100,000, or 20 per cent less than what they could have had before.
The purchasing power of mostly young buyers is going to be reduced significantly.
Site design is Copyright© 2013 myRealPage.com Inc. All rights reserved.
The Association of Regina REALTORS® Inc. (ARR) IDX Reciprocity listings are displayed in
accordance with ARR's MLS® Data Access Agreement and are copyright of the Association of Regina REALTORS® Inc..
The above information is from sources deemed reliable but should not be relied upon without independent verification.
The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA).
Used under license.
MLS® System data of the Association of Regina REALTORS® Inc. displayed on this site is refreshed every 2 hours.