Housing Market to Worsen Due To Recent Mortgage Rules

The new mortgage regulation and rules that were introduced recently by the federal government has a great chance of affecting the real estate market intensely and cause activities in the housing sector to slow down, as DBRS rating agency predicted.

On the other hand, although there might be a high increase in income and the size of the population, it will not likely cause a great impact.

According to DBRS, if it happens to be that the new mortgage rules are strictly tightened, it will worsen the condition of the market activity in areas like Montreal, Vancouver, Toronto and Calgary. The report also mentioned that the banking sector is in a very well-placed position to endure and survive through any housing correction that will be done.