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Trudeau Likely Just Getting Started in Bid to Ease Housing Fever

April 9, 2021 | Posted by: Donna van Lier-Grieve

Change is on the horizon in Canada Housing Market. In a bid to ease the housing fever, the feds are looking at many different avenues to do so. Higher Interest Rates and Stress Tests Qualifying Rates will likely be the first step. In a nutshell, if this happens what it means is that Canadian Home Buyers will qualify for a purchase price that is a lot lower than they previously were able to.  Don't be caught up in this debacle. If you are thinking about buying a home, get a mortgage pre-approval. Lock in your rate and terms so you won' t be disappointed when you start shopping. 

Driven by record low interest rates and induced demand for larger space, the value of Canadian residential real estate has surged 17 per cent in the last 12 months. Finance Minister Chrystia Freeland said she’d be watching the regulator’s move closely “to inform potential steps the government may take” on housing.

“You need something to cool the jets of the market because this thing is just going too high too fast, and that could potentially leave people out to dry,” Rob McLister, the mortgage editor at financial-services agreggator and marketplace Rates.ca, said by phone. “There’s just all sorts of things that could potentially go wrong when home prices are going vertical.”

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