27 July 2018

“Our recent consumer poll shows that overall sentiment on the real estate market has switched towards negative mood during the previous year and a half, affected by growing interest rates and government policies which are making it more difficult for homebuyers to receive a mortgage”, – he said.

Although we can see more first-time buyers getting financial help from their parents to provide a necessary down payment, many young people get used to a thought that they will rent forever.

Here are some of the report’s findings:

• The new mortgage stress test has prevented 100,000 Canadians from buying a property.
• The number of potential buyers who could afford a purchase now, but would fail the stress test, reached 18%, with an average necessary adjustment of $28,750.
• Almost third (32%) of respondents believe the stress test will have a sharply negative influence on their buying ability. In case of those who only plan to make a purchase during the next 5 years and don’t have a home today, the number goes up to 54%.
• The resale activity went down by 12.5% annually and by 16.5% from 2016.