News Update: CTV News – September 17th

Clinton Wilkins joins CTV News to comment on the federal government’s introduction of new mortgage rules aimed at assisting first-time home buyers.

Federal Government expands the 30-year amortization period to these buyers and increases the price cap for insured mortgages to $1.5 million

Maria Panopalis
First at five tonight, a way home. This week, the federal government announced new mortgage rules into helping young people buy their first property. CTV’s Stephanie Stephanie Tsicos looked into whether the changes are enough to make real estate more affordable for homeowner hopefuls. Stephanie?

Stephanie Tsicos
Maria while these new rules are welcome news. There are now concerns they could actually cause house prices to soar again! Getting into the housing market has been a challenge the last few years.

Chandler Haliburton
Buyers are frustrated because in a lot of cases, they’re not happy with what they can get for their pre-approval. And as rates have gone up, those pre-approvals have gone down and down.

Stephanie Tsicos
It could soon be easier for younger Canadians!

Chrystia Freeland
With these measures, first time home buyers are going to be in a stronger position.

Stephanie Tsicos
New mortgage rules are coming into effect. The federal government is expanding its 30-year amortization to include first-time home buyers, buying any type of home, as well as anybody purchasing a newly built home.

Clinton Wilkins
Now with the amortizations being extended to 30 years, it will allow the same borrower to afford a more expensive home, or it will enable some people that were just priced out at the market to be able to get into their first home.

Chandler Haliburton
While it will allow first- time home buyers easier access to the market in the short term, it might have some negative implications long- term to the cost of housing and in fact, the debt that those first-time home buyers have to pay back.

Stephanie Tsicos
The price cap for insured mortgages will also be boosted for the first time since 2012 moving to $1.5 million from 1 million to allow more people to qualify for a mortgage with less than a 20% down payment.

Clinton Wilkins
Now that might not have as much of an impact here in Halifax and around Atlantic Canada, but it will impact those first-time homebuyers in Ontario and BC.

Stephanie Tsicos
While this is a step in the right direction, this real estate agent says more needs to be done.

Chandler Haliburton
Allowing people to spend more money and take on more debt is a double edged sword to say the least. We need to actually see prices of homes for first-time, home buyers go down.

Stephanie Tsicos
Now these changes won’t actually come into effect until December 15th, which may leave some prospective home buyers on the fence about whether to buy now or wait until the new year. Maria?

Maria Panopalis
Thank you. It’s an educated bet, isn’t it? Thank you. Stephanie, CTV. Stephanie, Tsicos for us in Halifax tonight.