Lawmakers Informed About First-Time Buyers Being Affected By Mortgage Changes  

The head of Genworth made a statement sometime last week that the changes that were recently endorsed on mortgage rules has affected first-time buyer in a negative way, thus, any other further changes should be put on hold. As part of the research on the Canadian Real Estate Market and Home Ownership, Stuart Levings was a witness at the Standing Committee of the Finance Department.

He made comment that the changes made till date “largely targeted aspiring first-time buyers, making it harder for them to gain a foothold in the housing market today.” The problem is not the group, said Mr Levings, he added that first-time buyers who are insured are “the most tightly regulated, rigorously underwritten borrowers in the market today.”

Other markets with Calgary inclusive were affected by the policy change aimed at the strong markets of Toronto and Vancouver, which according to the Genworth chief “was already under pressure and didn’t need any additional cooling.” Surging prices were not affected as the changes only had impact on quite a small percentage of those in Toronto and Vancouver as highlighted by Mr Levings. He said that local regulations may have more effect, referring to the tax on foreign buyers in Vancouver. To sum it up, the federal government was called upon to put a hold on making any other changes, adjust the stress test to reveal better rate prospects, have risk-sharing model plan terminated and work with every hierarchy of the government to learn and discourse on the issues affecting local accommodation.