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Mortgage rules are already tighten. Vancity for example now requires 35% down for investment properties instead of the 25% and at one time you could get 5% down deals if you were first time buyer and basically "lie" and get an investment property. And now if you want to use rental income to offset your mortgage you must show 6 months in cheques which was always required but now they want proof you declared rental income in your tax return. If you didn't declare the income you're SOL. And supposedly Vancity has added fine print that they can forward mortgage applications with undeclared rental income to the CRA.
Vancity is also getting strict against home equity borrowing. Can't remember of the top of my head but Vancity recently changed it's lending to I believe 65% instead of the 75% so basically you can borrow up to 65% and not 75% but don't hold me on these numbers. And like I mentioned above if you have rental income to offset the mortgages for your investments but you don't declare the income in your tax returns well good luck borrowing.
Bottom line is banks have too much risky lending and not enough cash on hand so they're trying to minimize any fall out from a bubble bursting. And I've heard a lot stories from people in the lending industry that there's a lot people out there that should have never gotten mortgages in the first place but I guess greed knows no bounds.
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