New Mortgage Rules and You

Since 2008, we’ve seen the progression of changes implemented by the government to tighten eligibility rules for new insurable loans. By October 17th 2016, we’ll be looking at another wave of changes, most notably with the application of a “stress test”. Home buyers are now required to qualify for both their negotiated mortgage rate as well as the Bank of Canada’s five year rate. The result? Purchasing power will be affected and many home buyers will be adjusting their expectations and plans.

If you’re a first-time home buyer and you’re not sure that you can meet the new mortgage criteria, you should make it a priority to speak to your financial advisor or mortgage broker to advise you on your options.

Even if you you’re confident in your buying power because you already intended to buy well below your agreed pre-approval rate, you can benefit through the clarity of discussing these changes. If you’re a home buyer in this group, you may also see less competition, as the parties that have been working at the top end of the budget take a step back to regroup.


Some new rules also apply to sellers: If you’re selling your principle residence, you will now need to report this change on your income taxes to the CRA, but your home will still be exempt from being taxed on this profit in most cases. This is a great topic to discuss with your accountant or income tax preparer.

As Sellers, you will find that our local market in Waterloo Region is healthy and attractive to home buyers, particularly those who are financially stable, and understand the advantages of reducing their debt ceiling. Further, our buyer base is growing geographically as we continue to attract out-of-towners who find the Region to be a great place to live.

Overall, while the new regulations will restrict purchasing power from what which we have previously been exposed, it’s important to understand that regardless of these changes, it’s always wise to reduce other consumer debt, save more for a larger down payment, or lower your budget for your new home, which increases your financial stability, and risk reduction.

After all, home ownership should be a smart, informed, and a financially comfortable decision that allows you to invest in your life.

If you’re looking for more guidance on buying or selling a home in Waterloo Region, reach out and we can help you get familiar with the process, whether it’s the first time or the fourth time. Contact Us.

Clair Hills — Community Spotlight

Where can you find a neighbourhood with stunning quality homes built within the last 15 years, active and involved residents that coordinate events, who update you on community news, and even help facilitate your say in civic issues that affect you?


Clair Hills, that’s where! This quiet community boasts beautiful homes and and a community with neighbours who care. In addition to opportunities to meet your neighbours such as the Fall Fun Fest, or Maxwell’s Uber Haus tickets, your Clair Hills Community Neighbourhood Rep will help you get acquainted with the services Clair Hills Community Association offers. They even have a The CHCA Child Care Registry to help you find quality care for your little ones!

If you’re looking for a like-minded neighbours that know the value of volunteerism, community development, and pride in having a beautiful home in a safe, clean community, you might find that Clair Hills is the perfect place to start a new chapter.

For more information on the Clair Hills Community Association and all it has to offer visit their website. We’re also here to help you understand Clair Hills as a great place to invest in your life. After all, where we live, is how we live. Contact us.