New mortgage rules could hit Calgary market, and reduce temptation of debt

Onespecialistworriesnew mortgage rulescould make things more difficult for some Calgarians, but still argues the changes are prudent.

As of Feb. 15,would-be homeowners across Canadanow have to cough up a 10 per cent down payment on homes over $500,000, up from five per cent.

• Mortgage rules requiring 10% down on Canadian homes over $500K kick in

"When you look at Calgary, four per cent of the market will be impacted," said mortgage specialist Peter Kinch.

"In the normal market, you look at Alberta over the last 10 years, the impact would be negligible. However, Calgary is suffering right now, let's face it, and the last thing they need is one more straw to put on that pile."

Kinchsays the new rules put more of a burden on Calgary homebuyers when it's other Canadian cities that have greater mortgagedebt issues.

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The intent of the federal moveis to minimize household debt and to help cool off overheated markets like Vancouver and Toronto.

Despite his apprehension,Kinchdoes say the rule change is prudent and will help steer people towards purchases they can afford.

Homes below $500,000 still only require a five per cent down payment.