Affordability reality check: Incentive to help Canadian 1st-time home buyers could be limited

The Canadian government announced some big changes to mortgage rules this week, designed to help first-time homebuyers. After years of tightening mortgage rules, Ottawa is finally relaxing them. Extending 30-year loans to more buyers, increasing the cap on insured mortgages to $1.5 million, and allowing more people to buy a house with a down payment of less than 20 per cent. Reforms come as households in Toronto and Vancouver face significant income gaps to be able to afford the average priced homes in their cities. The gap sits at more than $111,000 in Vancouver and more than $92,000 in Toronto, according to a new RATESDOTCA report. As Global’s Anne Gaviola explains, these new rules are set to stoke demand and prices in Canada's most expensive housing markets, which means any improvement to affordability may only last a limited time. For more info, please go to https://globalnews.ca/news/10764368/us-fed-rate-cut-bank-of-canada-mortgages/ Subscribe to Global News Channel HERE: http://bit.ly/20fcXDc Like Global News on Facebook HERE: http://bit.ly/255GMJQ Follow Global News on X HERE: http://bit.ly/1Toz8mt Follow Global News on Instagram HERE: https://bit.ly/2QZaZIB #GlobalNews #Canada #Housing