25 Oct Canada’s New Mortgage Rules: This Is How Much You Can Afford from @Huffpost
Mortgage borrowers may find they can’t afford as much house as they before under the federal Liberals’ new lending rules.
The Bank of Canada backed the rules on Wednesday, saying that, “over time,” they will reduce the risk of Canada’s financial system becoming unstable.
But for now, people will find they can only borrow enough to buy cheaper homes than they could just last week, Samantha Brookes of Mortgages of Canada wrote in a Monday blog post.
“If a potential homebuyer with a combined family income of approximately $125,000 was told they could afford something in the $630,000 range, they may now be restricted to the $500,000 range, based on the new rules,” she said.