Don’t sacrifice your dreams because of mortgage rules
Over the past couple of years, Canadians have been “victims” of stricter mortgage rules. This has affected many first time buyers, forcing them to wait and be patient until conditions are more conducive for purchasing a home. Still, that hasn’t stopped many wide-eyed youngsters from purchasing their first homes. If you’re in the market for a new home, now’s the time to strike, as it seems that mortgage rules may soon be stricter.
In the article, “Canadian House Prices ‘Bubbly,’ The Economist Says As Feds Mull More Mortgage Changes,” Daniel Tencer of The Huffington Post Canada writes, “The Globe and Mail reports that the Office of the Superintendent of Financial Institutions (OSFI) appears also to be concerned about an overheated market. The banking regulator has been asking detailed questions of the banks about the impact of last year’s mortgage rule changes, with an eye to tightening the rules yet again.”
The reason for stricter mortgage rules, such as a crackdown on 30-year mortgages, is the fact that house prices are outgrowing people’s incomes. This is cause for concern for some of the nation’s economists, as they fear the housing market bubble may burst. Although housing numbers over the past couple of months has been stronger than this time last year, especially in the resale market, officials are considering all options and preventative measures in order to avoid a crash.
The financial crisis of 2008-2009 has left a poor taste in many mouths and rightfully so, but if you’re interested in purchasing a home and are financially stable, it’s best not to wait on your dream. River City Financial will answer any of questions you may have on mortgage rules and the right course of action to take, especially if you are a first time buyer in Edmonton. Remember, we take pride in helping you secure your future. Things are always more positive than they seem; the Canadian housing market is no different.
*Image courtesy of feverpitched
Post by Yvonne Wilchewski