This week, the Federal Government announced some upcoming changes to residential mortgages.

One of the biggest changes introduced will set an increased minimum qualifying rate, otherwise known as a 'stress test'. The move will look to raise the rate for uninsured mortgages to greater than the five year benchmark rate from the Bank of Canada.

Sherry Jenkins, from Axiom Mortgage Solutions in Airdrie says these rules were brought into place in response to some Canada's higher end markets.

"It's really designed for the Toronto and Vancouver markets because those are the ones where the prices have been driven up so high. For us, there's just no regional under riding right now so we're kind of getting drawn into that as well."

Here in Airdrie and Alberta, Jenkins says the new rules will have some impact but it will depend on what type of house you're looking for.

"There might be some people that may not get into the same types of houses that they used to. If you're looking at the higher end of the market, higher purchase price, it might make a difference for people, what they can qualify for in January."

While many analysts are predicting a sort of doom and gloom for some in the housing market, Jenkins says it's too early to tell.

"I think that it's always with these changes, we don't know all the fallout that will come out of it. I know our lenders are definitely coming under a lot more rules from the government as far as what they require, what that's going to look like for them going forward."

The new 'stress test' rule came into effect on October 17th with many of the new regulations starting in January.

You can read more on the mortgage rules here.

 

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