New Canadian mortgage rules mean fewer first-time property owners

by steve on July 14, 2013

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Are you a first-time homebuyer in Halifax, Nova Scotia? If you bought property in the last year, congratulations! If not, you might be part of the 20% who were forced to wait a little longer.

MLS® real estate transactions slowed down once new rules to Canadian mortgage lending were introduced in 2012. These new rules included reducing the maximum amortization period from 30 years to 25 for insured mortgages.

The intent was to cool down an “overheated” real estate market.

In a previous post, I touched on the “soft landing” expected by the Bank of Nova Scotia as a result of these changes. And as you’ll see in this article from the Chronicle Herald, it appears to have worked. According to BMO, “Sales did drop pretty heavily the first couple months, but then they stabilized and they’ve started to creep back up again.”

But these new mortgage rules won’t be the only game-changer for prospective home buyers in 2013: rising mortgage rates in the months to come could block even more first-time buyers from buying a home or condo.

Steve Ritchie is a REALTOR® with Keller Williams Realty in Halifax, Nova Scotia. He will help you search for Halifax real estate on the MLS ® and other star systems.

Photo credit: movesmartly.com

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