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Estimating how many will be impacted by new mortgage rules

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Real Estate Professional | 26 Oct 2016, 08:15 AM Agree 0
Agents have been wondering just how wide-spread the impact of the new mortgage rules will be, and one leading economist has crunched those numbers
  • Don j | 26 Oct 2016, 02:48 PM Agree 0
    The article fails to include the chain effect of first time buyers - each first time buyer in Halton generates the foundation financing for approximately 6 sales in a chain. That means if we loose 300 first time buyers that will stop or significantly delay 1800 home sales - that will more then wipe out excess demand and could kick us into a downward spiral as supply builds - it won't stop long term demand however as more and more buyers pile up on the sidelines looking in - what we need is reduction in red tape and taxes on new home construction to built an extra 50000 homes to get a balance back in supply and demand

    Also what is going to happen to all the first time buyers with deposits on homes awaiting completion in 3027 and 2018?? What happens if they do not meet new financing criteria

    Maybe we should be demanding government of Canada and Ontario have to do pass an enhanced stress test allowing for higher interest rates before they can engage in deficit spending. Indeed a 700billion debt at fed and 359bil at Ontario means a 2% interest rate jump will cost an extra 20+billion of interest we the tax payers must pay or 700$ for every man woman and child in the country
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