Matt Lee is a veteran realtor in Kingston – and spends long hours – even on weekends finding his clients the perfect home.
But some new regulations on mortgage requirements will make it much tougher for first-time buyers to jump into the housing market.
Matt Lee: “I think that if you’ve been pre-approved – this is coming in fairly quickly and you’re going to have to go back to your mortgage broker or banker as soon as possible and make sure that everything is going to stay the same.”
Beginning on October 17th, many first time home-buyers will undergo a more extensive stress test.
Meaning you might not able to afford to buy the house that’s in your price range today.
Cris Vileila: “The estimate is that about thirty percent of potential purchasers are going to be affected by this.”
Cristiano Vilela is one of the many mortgage brokers servicing the Limestone City – his last few days have been spent in his office trying to crunch numbers for his list of clients who are looking to buy sooner rather than later.
Cris Vileila: “Someone that would have been looking to purchase a home in the next three to six months may have to wait a year to two years to save for that additional down payment.”
Vilela compares this to a doctor using a sledgehammer when a scalpel will do.
Because the regulations are meant to bring down the prices of homes in bigger cities like Toronto and Vancouver.
Meanwhile, Lee says he isn’t too worried about this new regulations having a negative impact on Kingston’s housing market, due to the amount of jobs in the public sector.
Matt Lee: “Even in 2008 and 2009, we went up very little, but we still went up while everyone else around us was falling in prices and volume but we continued to grow.”
He says it’ll most likely have a trickledown effect, in that the prices of homes will gradually come down as buyers and sellers get used to these new rules.