A local real estate company is arguing against pessimistic reports on a recent mortgage ruling from the federal government.
Remax Yorkton is asking people not to panic over the “mortgage stress test,” which went into place on Jan. 1.
Uninsured borrowers from federally-regulated lenders must have their finances “stress tested,” which shows if they’d be able to pay off their mortgages if rates were higher than they are today, if they are to receive a loan.
“Anybody putting 20 per cent down or more on a house now has to qualify for five per cent interest instead of three per cent,” explained Candice Jesmer, a realtor with Remax.
Some analysts have said thousands of people won’t be able to pass this test, which could hurt the real estate market. Jesmer said it shouldn’t have a major effect on Yorkton.
“This rule has been in effect for a year and a half for anybody putting less than twenty per cent on a house,” she said. “For a majority of our clients...it’s really not a big deal.”
Jesmer said media coverage of the Vancouver and Toronto housing markets makes it seem like all Canadian towns have shaky real estate economies.
“Yorkton’s always been a stable market,” she said. “What we’ve got [here] is all good.”
Jesmer said Remax sold more houses in 2017 than they did in 2016, which indicates the healthiness of the Yorkton housing market.
“The economy’s good,” she said. “People are moving all the time [and] houses are selling.”
