The days of 30-year high ratio mortgages are over as the mortgage rule changes announced June 21st by the Department of Finance go live today. While the changes have been put in place to cool an overly aggressive housing market and curtail Canadians’ debt to income ratio levels, it’s the short term implications that have everyone from first time home buyers to brokers wondering – what’s it going to cost?
It’s been two weeks since the big mortgage rule changes – and mortgage brokers and other industry insiders are speaking their minds. The general consensus is while current measures put in place to cool the market are necessary – implementing them as a permanent solution may do more harm than good. And, while insured mortgages are the ones feeling the pinch, worries are that changes to conventional business may not be too far off.