Quote:
Originally Posted by blankall
I really have mixed feelings on the mortgage qualification issue. Yes, it's obviously bad to have Canadians overextend themselves with mortgages. However, it's also already pretty tough to qualify for a mortgage at price points in many markets.
The last round of restrictions on mortgages also seemed to have no effect whatsoever on prices. The mortgage qualification restriction seemed to only target working people looking to buy their first place. People borrowing off existing equity and other investors aren't really affected by these restrictions. For example, if you're leveraging off a $1,000,000 detached home to put 50% down on a $400k condo, these restrictions don't really affect you.
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Are you referring to the stress test? The original stress test was for high ratio (insured) mortgages only, but they amended that to include conventional mortgages a year or so later, so it would be applicable in your scenario.