VANCOUVER (NEWS1130) - Starting today, it's going to be tougher to take out a mortgage in Canada.
Mortgage broker Jessi Johnson says under the old rules, a family with zero debt and an income of $75,000 a year would qualify for a mortgage on a home worth half a million.
He says that family now needs to make $85,000, and if interest rates go up to six per cent, they'll have to make even more. "That family would have to make over $100,000 to buy a one bedroom condo in Vancouver with zero debt. And I haven't seen a client in a long time with zero debt."
The maximum length of a mortgage has been lowered from 35 to 30 years for those putting down under 20 per cent.
Mortgage broker Scott Dawson says it's a significant change. "Especially within the Vancouver market, it's a pricier market in Canada. It's going to affect us in BC more than other provinces potentially."
He says these days most clients are looking for 25 or 30 year mortgages. He also says there was a rush of people looking to refinance before the changes came into effect.