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Top Links: Domestic real estate industries should ‘expect the worse’ Add to ...

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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading this morning on the Web

Maclean’s argues that the policy focus on restricting foreign homebuying, while important, is distracting Canadians from the other set of measures limiting credit access for domestic residents,

“After October 17 Canadians might find a much cooler reception at the mortgage store. The change means that insured mortgages must be tested at the banks’ five-year posted rate, currently 4.64 per cent. Hundreds of thousands of buyers could be affected as the qualifying rate was as low as 2.17 percent until now. For a household with $100,000 in total income the stress test could mean a 20 per cent drop in approved mortgage value. The impact will be substantial.”

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