New mortgage rules that came into affect on October 17, 2016 could dampen your abilities to get a mortgage. The new rules require buyers applying for an insured mortgage to show they can afford to pay it back the Bank of Canada's five year fixed rate of 4.64%.
In order to cool down the market, the new rule might have unintended consequences because it might force buyers to resort to private lending.
Unfortunately the new mortgage rule is probably not designed to cool the market, but to take the risk away the government. It will be interesting to see whether the new rule makes an impact on the hot market.
Will the new mortgage rule deter you from entering the housing market?