Effectively, the changes mean that first time buyers will be tested against their ability to pay their mortgage at a high interest rate of 4.64% (Bank of Canada's conventional mortgage rate). In other words borrowers will officially qualify for a smaller mortgage amount. This new rule formally kicks in on Oct 17, 2016.
In the fall of 2016 the Ontario Government commits to increase the land transfer tax rebate from $ 2,000.00 to $ 4,000.00. Despite the new CHMC rules and regulations where first time buyers have to go back to the drawing board this helps out a little bit. Young families will now at least get a little help with their down payment when time to buy.
I strongly suggest that home buyers look for their future home in the Clarington area of Durham. Clarington is a municipality consisting of Courtice, Bowmanville, and Newcastle. The prices of homes in Clarington are still affordable but increasing rapidly. Within the next two years we expect to have a growth of at least 20 %. Now affordable homes will be out of reach for many young families and for those who manage to get their property it will be a great investment.