Tougher mortgage rules could dampen condo, townhome sales in Vancouver, Toronto | The Globe and Mail
Sales of condos and townhomes could soften in Canada’s two largest housing markets as first-time buyers face tougher lending rules that take effect on Monday.
The mortgage changes will likely be felt especially hard in Greater Vancouver and the Greater Toronto Area, according to the Canadian Real Estate Association.
“First-time home buyers, particularly in housing markets with a lack of affordable inventory of single-family homes, may be priced out of the market by the new regulations that take effect on Oct. 17,” CREA chief economist Gregory Klump said in a statement on Friday.
Last week, the federal government announced measures to tighten mortgage rules. Ottawa is also closing tax loopholes used by some foreign buyers.
In most cases, homeowners who are looking to upgrade to larger houses must first sell their existing properties before they are able to acquire their next place.
