Today Finance Minister Bill Nurneau announced the following new changes regarding Housing effective 17 oct 2016. Here are the changes

1.Now the borrower have to qualify at 4.64% for mortgage if you are paying less then 20% down payment and your mortgage is insured with CMHC or genworth. Previously if you are getting a fixed rate of 5 year eg 2.44% then you can qualify at 2.44%. in Simple terms if you are getting 500,000 mortgage then previously you need a income of 90,000 to qualify now you need income of 110,000 to qualify. This can either cool of the overheated housing market or lower the prices of the house
2. Now only people living in their own home Can Claim Capital Gains exemption on their principal residence. It will effect foreign buyer buying houses in Canada. In Tax return every year you have to show one house as your principal residence.
3. Now Banks will only be able to insure their conventional mortgage if the mortgage is for principal residence and all the mortgages are 25 year amortisation period. Previously banks were able to reinsure their mortgage even if the amortization period is more then 25 year and its for investment purpose.
4. Next big change expected is that which is also very big is that banks will have to pay some deductible if the mortgage goes in to default and they have to get the money from insurer. It will drive interest rate higher.

So the bottom line is that please take decision regarding buying house carefully and these changes can effect the housing prices. Fouth one is also very big if it is implemented then interest rate will increase very much. Further it is advised if possible to take fixed rate instead of variable.

So I m keeping my promise to keep you posted on the big changes effecting you. Good luck