Quote:
Originally Posted by MillerTime GFG
Here’s what’s ridiculous about the new CMHC incentive. Example:
- 100k household income currently could buy for around 458k (quoting a colleague). This new incentive restricts people to 4X their household income, which would mean a max purchase of 400k. This means this incentive actually does not help affordability (or qualifying) whatsoever. It more-so helps people that can already comfortably do so save some cash flow.
This isn’t an affordability incentive, it’s an assistance to cash flow. This is such a strange, strange incentive.
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I have a lot of issues with this program, but it being capped at 4x income is not one of them. People are too indebted. The banks keeping throwing debt at people and Canadians eat it up. No one should be borrowing the max the bank will let you get away with. That is why they put in the stress test, because banks weren't being careful enough. Also, are you sure it is a max purchase of 4x income and not a max mortgage of 4x income?