With sales of single detached homes continuing to decline in the real estate market of Greater Vancouver, we are also starting to see that new home construction has taken a hit.
On October 17th, 2016, the Canadian Government has included a new stress test for mortgages with less than 20% down payment. This new stress test will see if buyers can still afford their mortgage at a rate of 4.64%, which is significantly higher than the current rates. CMHC has now released some statistics to show how this stress test has affected our market and we can see the numbers on a steady decline.
Read more about this article here.