The Ontario Real Estate Association has released the results of its most recent semi-annual Home Ownership Index, finding that the new mortgage rules introduced in October that puts a higher mortgage interest rate on buyers who have a down payment under 20% will delay home ownership for almost half of the first-time buyers in Ontario.
“Our survey indicates that the new stress test will have a negative impact on first-time buyers’ ability to buy a home,” said the CEO of the Ontario Real Estate Association, Tim Hudak, in a press release. “It’s important to remember who’s being affected by measures that curb housing demand – a young family looking for more space, a twenty-something trying to get out of his parents’ basement. Just when they’re about to make the leap into home ownership, things get a little less affordable.”
Additional highlights from the Home Ownership Index include:
79% of Ontario first-time buyers say the new mortgage rules will hamper their buying plans.
45% of Ontario first-time buyers would need to keep saving for a 20% down payment.
27% of Ontario first-time home buyers would need to obtain more money to have a larger down payment.
34% of Ontario first-time buyers say they’ll have to look at less expensive homes.
22% of first time buyers in Ontario say they’ll have to look in a different city to find an affordable home.