New regulations on mortgages could make it harder for Ontarians to purchase a home


Published July 19, 2021 at 3:20 pm


New regulations on mortgage payments could make it harder to Ontarians, who are already paying more than almost all other residents in the country, to buy a home.

A new stress test on mortgages came into effect on June 1, and it could cause a dip in housing market activity.

Under these new regulations, those who take out a mortgage will have to demonstrate an ability to make payments at a rate of 5.25 per cent—an increase of 0.46 per cent of the former rate, which was 4.79 per cent.

Additionally, those with an uninsured mortgage—which is a down payment of more than 20 per cent—will be required to pass this test, which is a new addition (previously only those with an insured mortgage were required to pass it).

This new regulation could reduce the average mortgage amount available for potential buyers by $14,000 to just $47,000.

According to a recent report from, Ontarians are paying an average of $140,215 for down payments, with is 20.35 per cent of the average home price—the only province with a higher average in the country is B.C.

Conversely, residents of Quebec pay the least in down payments in the country—Ontarians are paying $81,000 more in down payments than residents of Quebec, who pay just 14.68 per cent of the price of a home, which, on average, is a little more than half of the price in Ontario. 

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