28 February 2018

As a result, the demand for homes becomes more difficult,” – said Sheri Cooper, DLC’s chief economist.

“With parents of young adults being as a rule middle-aged and heading to retirement, it gets more difficult for them to have the necessary financial support. Home equity is priced against the prime rate. It goes up each time the rate rises. It’s an interest-only loan without amortization and you’re not paying off the principal”.

The OSFI’s rules aimed at lowering risks to the national banking system, but it also has a strong impact on consumers’ ability to become homeowners.

We have a fantastic program allowing young adult to enter housing market with the help from parents, but it doesn’t require a big downpayment, so parents won’t risk their retirement goals!