Prospective home buyers prepare for new mortgage restrictions

Global BC interviewed UBC economics professor Thomas Davidoff for a story on Canada’s new mortgage restrictions.

One change is buyers with a down-payment of less than 20 per cent must qualify for the Bank of Canada’s five-year fixed rate of 4.64 per cent.

“For all mortgages, you’ve now got to qualify at a significantly higher rate. That means the same income can afford a smaller mortgage,” Davidoff said.

Davidoff also spoke to iNews 880 on the same topic.