You’ve probably been reading or hearing reports on the changing norms for availing home mortgage in Canada from January 2018. The key change is that, now onwards, homeowners seeking refinancing will have to qualify for the lenders’ advertised 5-year fixed rate, rather than the discounted rate. This difference of 200 basis points translates into a loss of 22% purchasing power!
Here’s a graphic explanation of how, despite increase in wages, property purchasing power has declined by a whopping 22%, and up to 10% of prospective buyers are automatically disqualified!
Infographic Source: Buying a home in 2018 vs. 2017 by Zolo