The new mortgage rules in Canada have bashed the purchasing power of its citizens. The first time buyers of homes are the ones who are taking the worst hit though. The new rules that came into effect in October this year, involves a stress test which is applicable on all the insured mortgages. Up till now this stress test was only required for those loan seekers who opted for fixed rate mortgages for a period of five years or more.
The change was brought about in order to make sure that the borrowers are still capable of repaying their debts in an event of sudden rise in the interest rates of their purchased loans or in case there is any shift in their own financial state in the future.
While it may seem to be a hard blow to the people in dire need of personal loans bad credit, it is a step taken in an attempt to bring stability in Canada’s housing market. It was especially done to curb the uncontrolled rise in the property prices in cities like Toronto or Vancouver where the prices had skyrocketed.
So what is it that you can do about it?
If you were looking forward to buying a home and already had a pre-approval, then talking to your mortgage broker may help since the numbers that you may have qualified have probably changed now. And if you are a seller then it may be good idea to accept the very next offer that comes on your table before you lose the chance altogether. However, if you were thinking of renovating your home before you could sell it, better not!
Nevertheless, owning a home is much better than renting a house and since the market has become so thin now, it is probable many markets will lower their prices for a short term to meet the buyers where they are stuck right now. Hence, wait it out for a while.
Evidently, with the lending guidelines for banks becoming stringent, mortgage loans have become difficult to obtain. However, reliable finance companies like CA Financial provide easy bad credit loans against security.
About CA Financial:
CA financial is a reputed finance company in Edmonton that provides car title loans to Canadian citizens with bad credit history.
For more information, visit www.Ca-financial.com.