New Government Rules to Hit Condo Buyers

According to "National Post", The federal government's efforts to get tough on borrowing are now focused on the condominium sector, with new rules in the works to make it tougher to qualify for a loan on a high-rise apartment. Sources say rules now being discussed would add 100% of condominium fees to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage. Currently, only 50% of the fee is considered. The move has the potential to squeeze thousands of consumers out of the market.
The proposal is said to be part of a series of new rules the government is "seriously considering."
Brad Lamb, a Toronto real estate broker and developer, said the practice would discriminate against condominium owners. "When you buy a house, you don't put any future maintenance costs [in your debt calculation]," said Mr. Lamb. "All it is a knee-jerk reaction by idiot bankers pressuring idiot politicians that don't understand the nature of the condominium market in Canada. What is driving the condominium market in Ottawa, Vancouver, Toronto and Montreal ... is investors. This won't affect them. This just attacks the lowly first-time buyer."

Potential Changes to Canada's Mortgage Financing Rules

The Canadian Real Estate Association (CREA) has launched a REALTOR® Call for Action on potential changes to Canada’s mortgage financing rules.
According to CREA, there is strong speculation the federal government may further tighten mortgage financing rules; in particular, raising down payment requirements and shortening amortization periods. This would make it more difficult for some Canadian families to purchase a home and could have a detrimental impact on existing homeowners and the economy. Finance Minister Jim Flaherty said he is monitoring the situation, and will take action if needed.
In a December letter to the Minister of Finance, CREA’s CEO Pierre Beauchamp raised concerns about possible changes to mortgage financing rules.