Tougher Federal Mortgage Regulations

The new year is upon us, and with it, a whole new real estate reality. Tougher federal mortgage regulations took full effect on Jan. 1, slashing affordability for new borrowers and contributing to slower selling conditions than the record-breaking activity experienced throughout 2017 in Canada’s largest markets.

Dubbed Guideline B-20, this latest parcel of policy changes is also anticipated to be the most impactful, as all new mortgage applicants must undergo a stress test regardless of their down payment size. Under the rules, a buyer paying more than 20 per cent down on their home purchase must prove they can carry their monthly payments at either their contract rate plus two per cent, or at the Bank of Canada’s benchmark rate – whichever is higher.

Here are some of the ways the real estate landscape has changed because of Guideline B-20.

  • Pre-approvals are more important than ever:
  • There are fewer mortgage options for borrowers who need help:
  • Buyers may have to downsize their expectations:


This information has been provided by: Penelope Graham the managing editor of

Lee Bourgeois Edmonton Real Estate Blog