Finance Minister Is Calling For More Stringent Mortgage Rules

Finance Minister Bill Morneau's news release this morning will have a great impact on future home buyers borrowing capacities and lender’s lending policies.

In order to protect and stabilize the ever steaming real estate market in GTA and GVA, the federal government is proposing the following changes to mortgage lending rules:

  1. Lenders to implement “Stress Test” to asset borrowing’s ability to repay the mortgage in the event of income changes. This could mean qualifying the 5-year fixed rate mortgage on Canada’s Benchmark rate versus contract rate; Extra equity requirement for mortgage application, ect.
  2. Calling for lenders and industry stakeholders to share the risk for high ratio insured mortgages other than relying on tax payers’ money to repay defaulted mortgages. It might lead to higher insurance premium charged by lender for insured mortgages.
  3. Closing income tax loopholes for primary residence: Only Canadian residence will get exempt from income tax on capital gains of principal residence and only one property can be claimed as principal residence in any given year.

If you are in the market to purchase a home or looking to refinance a home, please contact us by phone 1-877-478-9998 or email at

We will guide you through the process and ensure you a smooth, worry free borrowing experience.