Home Buyers Attention: The Canadian Government has raised the stress test qualifying rate…AGAIN

There is an old saying: “be careful what you wish for”. I believe it is fitting to say the Canadian Government is getting what they wanted. It is not difficult to visualize what they are trying to do in the Canadian residential market. By raising the stress test to 5.34% this past week, they are trying to cool down and eliminate the speculation in the housing market. Well, it has happened in the market has definitely slowed for home buyers. At Robert Floris’ Mortgage Architects office in Hamilton, Ontario, we will do an analysis on how this affects home buyers, the market and specifically the Hamilton area residential home sales.

To the average home buyers, the stress test increased from 5.14% to 5.34%. To the naked eye, it does not appear that much. This may be true. However, this is the fifth increase since last summer. Needless to say, this is just going to hinder purchasers just that much more when it comes to affordability. It should be no surprise that the Hamilton Mountain price ranged between $250,000-$450,000. Young Canadian potential home buyers will still qualify, only for a lot less. Expect this trend to continue for the next while. Home buyers wanting to purchase higher-priced homes or sellers wanting to sell higher priced homes will have to wait start waiting a lot longer.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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