Harbourwalk condos.The down payment of the house price over 500000 Canadian dollars is 10%. Canada’s new rules on tightening home loans came into effect today to apply for mortgages to buy properties.Please Visit: Harbourwalk condos to Get Your VVIP Registration Today!
The down payment for the C $500000-1 million portion has increased from 5% to 10%. For properties under C $500000, the minimum down payment is still 5%. For properties over C $1 million, the down payment is still 20%. This is the first action taken by the Liberal government against Canada’s hot housing market since it came to power in November last year.
But critics say the new mortgage rules are only political moves taken by the Liberal government and have little impact on the national housing market, because there are many factors contributing to the rise in house prices. such as low interest rates, speculators, money from overseas buyers, etc., the increase in the down payment is of little significance in controlling the booming real estate market. Real estate agents believe that the new rules will mainly put pressure on first-time buyers, especially in high-priced markets such as Vancouver and Toronto.
The Canadian Bankers Association believes that the increase in the down payment, coupled with the reduction of the maximum period for mortgage repayment by the federal government to 25 years in July 2012, will make it more difficult for some home buyers to obtain mortgages, so they will have to postpone their purchase plans or switch to cheaper houses.
The average price of detached homes reached C $1.8 million in January, up from C $1.3 million a year ago, culminating in local frustration, with some angry protesters gathered on the lawn of houses to be demolished, from the technology company CEO to the mayor of Vancouver, calling for measures to ease speculation.
The changes mentioned by Michael de Jong, the finance minister of British Columbia, in the province’s budget released in February were seen as a start, but the results were not as good as expected.
Iglika Ivanova, an economist at the left-leaning Canadian Center for alternative Policy, said: “the luxury tax is a step forward, but it is too small. This does not stop speculation, nor does it allow the government to receive a large sum of money from speculation. ”
Under the new measures in British Columbia, Canadians or permanent residents who buy new homes under C $750000 will be exempted from asset transfer tax (PTT), which the province hopes will boost the construction of the new comfortable housing.