Vancouver Home Buyers Will Require About 27% More Income To Qualify For Mortgage On Average Priced Home


Finance Minister Bill Morneau introduced tighter new mortgage regulations last month, requiring a “stress” test for borrowers of Canada’s most common mortgage, the five-year fixed-rate.
It requires borrowers to qualify for loans at the Bank of Canada’s posted rate, which is about two percentage points higher than current offered rates.
Of course, most people aren’t going to see a pay raise of 20 per cent or more this fall, so the likely outcome of the new mortgage rules will be a decline in home sales (something the Finance Department itself predicted) and slowing or declining house prices.

In Toronto, you’ll need nearly 25 per cent more income (an extra $29,000 or so) than before to afford an average house, while in Vancouver you’ll need 27 per cent more — an extra $33,000 in income.

– from Canadians Will Need 20% More Income To Buy That House They Wanted, Huffington Post, 21 Nov 2016

Fortunately, in Vancouver there is no relationship between income and housing prices. So this new rule is unlikely to have any effect. -ed.

29 responses to “Vancouver Home Buyers Will Require About 27% More Income To Qualify For Mortgage On Average Priced Home

  1. I am back from my post – trump depression slumber…. god that was awful. Finally feeling recovered and have some semblance of faith in humanity. So might as well start here…

    Question, does this even apply to you if you have 20% down?

    • rod_jonsson_pmd

      you have my empathy, truly … otoh i admit to still having wayyyyy too much fun watching the experts’ continuing flailfest … watching people who thought they were so smart have to deal with the reality of being so dumb, or lose even more credibility trying to deny it … will be the same for the vanre when it becomes clear that rates have turned for good … the CBs are losing control of bond prices and we’ll be comfortably into double digit sovereign yields before they turn again

  2. #Mortgage!?!… #WhoNeedsAMortgageWhenChrusty’sGotYourBack…

  3. #BonusChrusty,Or… #HousingAffordability’sASnap… #WhenYourLandlord’sNevinSangha…

    • [BIV] – Exclusive: Premier’s landlord linked to Whitecaps owner
      Spokesman says Clark renting $3.7 million Vancouver-Quilchena house, but she’s still running in Kelowna

      …”B.C. Premier Christy Clark is renting a house from a close associate of the owner of a professional sports team that plays at a provincially owned stadium and practices at a provincially funded training centre, yet her tenancy is not disclosed in published conflict of interest filings.

      The land titles registry shows the house, which is within the Vancouver-Quilchena riding on Vancouver’s west side, is registered to Nevin Sangha with a declared value of $3.688 million.

      According to the B.C. companies registry, West Vancouver-based Sangha is the only director of Carrera Management Corp. Carrera manages Greg Kerfoot’s real estate holdings in downtown Vancouver, including The Landing, the heritage office building on Water Street where the Kerfoot-owned Major League Soccer franchise is headquartered. “…

    • #WhatACoincidence! #SameSangha!… #QuelleSurprise!

      [Province] – Vancouver investigates Kitsilano apartment block hosting 17 Airbnb units

      …”The City of Vancouver is investigating the operation of 17 short-term rental units in a Kitsilano apartment block.

      There are 17 Airbnb listings in the New York Apartments at 2341 York Ave. near Kitsilano Beach. The two-storey building has 29 units, according to its owner, and is zoned as a medium-density residential development.

      In Vancouver, all rental tenancies must be at least 30 days except in hotels and licensed bed and breakfasts, but the vast majority of Airbnb hosts violate this regulation. In online reviews, many users say they stayed at the New York for just a few days.

      The building was sold last July for $3.8 million to Nevin Sangha of Carrera Management Corp. Sangha said his firm manages around 300 conventional rental units in the Lower Mainland, and stressed that the New York is the firm’s only building using Airbnb.”…

  4. On the day when the new federal mortgage rules came into effect ..

    CMHC announced: “stress test says house prices could drop 30% on interest rate spike”

    Not any time soon though, unless something happens to rein in the 2010 Dodd-Frank Wall Street regulation bill.

  5. Trudeau attended cash-for-access fundraiser with Chinese billionaires
    “Attending the fundraiser appears to breach the ethical rules laid down by Mr. Trudeau after he took office. These “Open and Accountable Government” rules state “there should be no preferential access, or appearance of preferential access” in exchange for political donations.

    The fundraiser also appears to violate Liberal Party guidelines that require party officials to ban anyone from attending a fundraiser if they have direct business interests before the government.”

    • “Fortunately, in Vancouver there is no relationship between income and housing prices. So this new rule is unlikely to have any effect.” – Ed.

      #Precisely… #AndNowForAWellEarned… #ToldYaSoFrom… #SCMP’sIanYoung’

      [SCMP] – Vancouver’s mayor never dreamed foreign-funded housing crisis would get so bad. If only he’d been warned…

      …”In an interview with the Guardian published this week, Robertson says he “wouldn’t have dreamed the crisis would get this intense” over the past six years, blaming “global capital”, as well as the federal and provincial governments not doing enough. He almost comes off as an heroic figure in the battle for housing affordability, joining a “global cadre of mayors squaring off against superheated housing markets to ensure that middle- and low-income earners have a place to call home”.

      Robertson describes city-level governments “dealing with chaos on our streets and people struggling to find a place to live”.

      Housing superfriends unite! Call in the Mayorvengers!

      The inconvenient truth, of course, is that alarm bells have been ringing about foreign money and Vancouver’s housing crisis for many years. And it’s a lot more recently than six years that Robertson has been ignoring the klaxon.

      Not just ignoring it, but throwing a blanket over it, trying to kick out the plug and calling it a racist.”…

  6. “A sexual harassment lawsuit directed at its general manager; a whistle-blower discrimination claim by an ousted compliance officer; a US$215 million fine for failure to check money laundering involving Russia, Yemen and Afghanistan.
    Operations at the Agricultural Bank of China‘s New York branch had been repeatedly cited for problems, but nothing had been done to address them.
    Not until a tall, beautiful and blonde former chief compliance officer of the branch laid out all the details in open court in a US$8 million law suit.”

    Top China bank fined US$215 million over money laundering violations in New York

  7. Canadian bank starts charging negative 0.75% rate on most foreign cash balances

  8. Despite ongoing controversy over its reclamation plans. Forest City developer from China presses ahead to reclaim the four islands

    next to a proposed oi and gas hub

  9. 2227 7th Ave E: underpriced by at least a quarter mil.

  10. 3251 Parker – sits on the massive Boundary Road Bog. Why is there no mention of that in the listing? Like the four houses still for sale in the 4100 block of Penticton – no mention anywhere that it’s a bog. To get a sense of what bogs look like, check out Bear Grylls in Scotland. The water-loading capacity of oeat is phenomenal. Women used to use it before the days of tampons.

  11. … peat

    1276 57th: the Ugh Factor. How can a house be made so unlovely? Have a disjointed facade and paint it pink – wait for the patina of mold.

    That said, there should be a lot more Vancouver Mohawks. They’re infinitely more liveable than Van Spec Prairie Dog Holes. It all comes down to the .6 vs .7.

  12. 2122 Parker: bought 3 years ago for $1.006M – listed now for $1.998M. Good deal – not.

  13. 3318 2nd Ave E: could be a poster child for everything wrong about Vancouver houses – a repellent example from the facade, to the interior, to the illegal cover over the illegal basement suite. A revolting examplar – yours for $1.3M over last assessed. This thoroughly awful ugly building – a pimple on the landscape.

  14. #EasyCome… #EasyGo?…

    • [CBC] – Clients of convicted immigration consultant facing deportation for lying: 500 more people under investigation for falsely obtaining permanent residency and Canadian citizenship

      …’One by one, many of the 1,200 former clients of an unlicensed Richmond, B.C., immigration consultant are getting the bad news — they’re no longer welcome in Canada because they lied.

      CBC News has learned 320 immigrants, who each paid thousands of dollars to New Can Consulting and owner Xun (Sunny) Wang, are now facing deportation to China.

      One year ago, Wang, 47, was convicted of one of the biggest immigration scams in Canadian history — making $10 million by filing fraudulent immigration applications for his clients.

      In one of his ploys, Wang falsely used his own home in Richmond as an address for 114 of his clients who didn’t live in Canada.”…

    • pictorial journalism for the lazy readers

  15. Birth of the “10-year visas” …..

    source: rmzxb
    “China’s wealthy immigrants’ fraudulent plan busted in Canada’s largest immigration scam.”
    “Often, the public understanding of immigration fraud involves the use of various means to enable those who do not meet the conditions to live and work in Canada.
    But strangely enough, in this case, Wang Xun’s clients have spent tens of thousands of Canadian dollars to avoid living in Canada, having acquired permanent resident status and fully complying with immigration conditions. ”

    source: dwnews dd 2015-11-26
    “The grotesque motive of China’s wealthy immigrants to Canada resorting to a scam”
    “Canada has become a major emigrant country for the Chinese, but some of them are not seeking to live and work in Canada. Their motivation is to gain more benefits and benefits beyond nationality, and a portion of this group are China’s wealthiest people.”
    “The most important aspect of the case is neither the size of the scam, nor the sophistication and unscrupulous behavior, but the motives of these customers.”

  16. Anbang buys stake in BC-based retirement home chain
    “A massive Chinese insurance company with a murky ownership structure is buying a majority stake in one of British Columbia’s biggest retirement home chains, a deal believed to exceed $1-billion that would give Beijing-based Anbang Insurance an important role in the delivery of health care in B.C.”

    Health care is a trillion dollar industry. The winners get in early, as eventually all health care services will be privatized. Just look at Hong Kong and Singapore where over 3/4 of the population live in public subsidized housing, they each have more than a dozen private hospitals to cater to the top 10%. There is a long list of private International Hospitals and Clinics in Shanghai, Beijing and other cities

    Believe it that “he/she” never dreamed foreign-funded “health care” crisis.would get so bad. They don’t see it coming, ’cause they are too busy giving themselves a raise of 16%, 66%, 666%.

  17. Pingback: Vancouver Home Buyers Will Require About 27% More Income To Qualify For Mortgage On Average Priced Home — Vancouver Real Estate Anecdote Archive | Real Estate Sales Jobs

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