CBC spoke with Thomas Davidoff, a UBC economics professor, for a story on the recent tax and mortgage rule changes.
With the new rules, those who purchase properties that are not their main residence will not be able to claim income tax exemption. Families will only be able to designate one property as their principal residence in a year.
Mortgage “stress tests” that formerly applied to buyers with downpayments of less than 20 per cent who took out mortgages with non-fixed rates under five years will now apply to all first-time borrowers.
“My guess is the larger impact will be on the mortgage qualification rules,” Davidoff said. “I think asking everyone to pull back at the lower end of affordability probably adds sustainability and doesn’t compromise affordability so much as lower prices especially in a market like Toronto or Vancouver.”
A similar story also appeared in the Vancouver Sun and The Province.
