New rules for mortgage approvals!

This article makes it sound like buyers will be cut off at the knees, and have a much harder time qualifying for a mortgage. In reality, the new rule are really only common sense, and will not affect most people to any great length.

http://www.theglobeandmail.com/report-on-business/ottawa-warned-against-altering-mortgage-rules/article1462425/

It sounds like economists and government are worried that we are entering into bubble territory. Personally, I'm not convinced, but regardless...we know that mortgages will eventually go up, so why not plan a bit for the future. In short, if you can't afford the house at the posted five year rate, then you probably shouldn't be buying (or re-financing) it.

I much prefer this article (link below) which sets out the 3 main components of the rules. I think they made the right call, and am glad that they didn't impose anything harsher, or make changes to the minimum 5% down payment on primary residences.

http://finance.sympatico.ca/Home/ContentPosting?newsitemid=mortgage-flaherty&feedname=CBC-BUSINESS-V3&show=False&number=0&showbyline=False&subtitle=&detect=&abc=abc&date=true&paginationenabled=false

Housing set to really juice economy in spring

Housing set to really juice economy in spring