Garry Marr’s article in the Financial Post gathers different views on the state of Canada’s Housing Market. Below is an excerpt from the article quoting MonsterMortgage.ca’s Principal Broker Vince Gaetano.
…tightening of lending requirements which affected the self-employed might be the bigger factor. But still, he wonders whether the housing market just needs a break.
“I think the market is tired,” says Mr. Gaetano, adding the impact of amortization changes is probably cumulative. The maximum amortization length for a government-backed insured mortgage has declined from 40 years in 2008.
“Every five-year drop represented a 1% interest rate hike in cash flow,” says Mr. Gaetano. “All of [the rule changes] have layered on top of each other. It’s a cash flow crunch. I think the reality is real estate is slowing down.”