There’s a chance that the federal government could make it tougher for people to purchase a home, by tightening lending rules for mortgages. Possible changes could include raising the minimum down payment from 5% or reducing the maximum amortisation from 30 years (it was changed from 35 to 30 years not that long ago). This change could come this spring, possibly by late March.
Would stricter lending rules affect the real estate market? Only time will tell. It could keep some first-time buyers out of the market completely. Or it could shift more interest toward the condo market here in Edmonton, which may be a good thing, as the condo market has taken a bit of a beating.
Read the Edmonton Journal story:
Analysts expect Ottawa to tighten mortgage rules