It is too soon to tell whether or not changes to the mortgage lending rules will affect those purchasing homes through Whistler Housing Authority.
The WHA board received a brief overview of the changes announced in June that recently took effect and reduce the maximum Canada Mortgage and Housing Corporation insured mortgage length to 25 years from a 30 year limit previously established by the same government.
WHA general manager Marla Zucht said with the changes having only been in effect since last week it is too early to tell if those looking to purchase through the local affordable housing program will be influenced.
“Since these changes just took affect it is too early for us to assess the impact at this time,” Zucht said adding while the housing authority does not actually see mortgages that purchasers arrange as part of their process it may have an impact. “The changes to max allowable amortization may have an impact on people’s ability to purchase homes.”
Whistler Real Estate Company Ltd. President and owner Pat Kelly the CMHC change affects only a small portion of the Whistler market and in particular first time homebuyers like those purchasing WHA homes.
“It makes the costs for first-time home buyers and people buying in market for first time without equity… more expensive by 10 to 12 per cent,” Kelly said.
West Vancouver-Sunshine Coast-Sea to Sky Country Conservative Party Member of Parliament John Weston said the mortgage change is a reminder for all Canadians to remain within their limits when they start borrowing.
“Clearly the changes are mild restrictions on former borrowing limits when people want to use government backed insured mortgages,” Weston said. “It shows continuing sensitivity to avoiding mistakes Americans and others have made in Europe in trying to keep people to avail themselves of the borrowing markets but within boundaries that prevent large scale financial meltdowns.”