The Government of Canada will be implementing new mortgage rules on October 17, that could affect what you qualify for.

With mortgage rates continuing to sit below 3 percent, the government is implementing a 'stress test' that will require lenders to qualify high loan-to-value home buyers against the higher mortgage rate of the Bank of Canada which is currently at 4.64 per cent.

With the potential for the market to shift and mortgage rates to rise, reducing the risk of foreclosures is the governments key strategy with the mandatory stress test.

Sherry Jenkins, Mortgage Specialist with Axiom Mortgage Solutions said that many lenders have already been using the stress test, but for others it could mean new homeowners will qualify for less.

"As a first time home buyer if your trying to get into a detached market it would make a difference, it may push you into a townhouse or something like that."

Low-Ratio mortgage requirements are also changing; Effective November 30, all low-ration mortgages must qualify for mortgage insurance under the same guidelines as a high-ratio mortgage.

Some of the major changes included are that the home must be purchased as an owner-occupied dwelling and a maximum property purchase price below $1,000,000 at the time the loan is approved.

In addition to lending changes, home owners will now have to report all home sales on their income taxes, but primary residences will remain tax-free.