Tougher qualification standards for mortgages!

The federal govenment has made qualifying for mortgages difficult for those who are stretching to get into a home or more expensive home at the top end of their affordable range.

Apparently the experts figure 10 to 12% of buyers will be affected as discussed in this article;

https://news.vice.com/en_ca/article/gyw53q/canadas-new-mortgage-rules-guaranteed-to-further-slow-down-the-market

As usual the government has taken the blunt approach to the situation, and one that is probably overkill considering that interest rates are unlikely to rise to 5% in the near future, possibly even the long term.

There is a lot of money available to be lent out right around the world and Canada is one of the preferred destinations for that cash.

In spite of this change, the market is still quite strong in the GTA.

Foreign buyers often pay cash, or finance their purchases in a different fashion and they will be around for a long time. Canadian buyers will be affected to some degree, but will still buy, especially as rentals are difficult to find and very expensive.