Federal government closes tax loophole used by foreign home buyers, hikes mortgage scrutiny

"Across the country, many middle class families looking to buy their first home see prices climbing, often out of their reach," Finance Minister Bill Morneau told reporters Monday, October 3rd. "Some are taking on high levels of debt in a rush to buy before it's too late."

"The federal government will be implementing "mortgage stress tests" for all insured borrowers. The stress tests will include seeing whether homebuyers can afford their mortgage payments if interest rates rise. While many buyers are currently qualifying for five-year mortgages at around two per cent, they will now have to prove that they can make mortgage payments at the Bank of Canada posted rate of 4.64 per cent - which in markets such as Toronto or Vancouver, can add tens of thousands of dollars a year in interest charges.

Morneau said that the new rules will go into effect on Oct. 17, though the changes will not affect Canadians with existing mortgages.


September Market Update

Is it a Buyer’s Market or a Seller’s Market now in your neighbourhood? Has the benchmark price for condos, townhomes or houses changed in the last month?

For answers to these questions and more consult our local market real estate reports below.



Bowen Island

Burnaby East

Burnaby North

Burnaby South






Maple Ridge


New Westminster

North Delta

North Surrey

North Vancouver


Pitt Meadows

Port Coquitlam

Port Moody


South Surrey/
White Rock


Sunshine Coast

Surrey - Central


Vancouver - East

Vancouver - West

Vancouver Island



West Vancouver


25 Best Blue Paints According to Top Designers

Blue is the world's favourite colour, and certainly a favourite here at Macdonald Realty, so we couldn't resist sharing this Elle Decor article featuring top designers' favourite shades.

The versatility of blue means it works equally well as both a statement colour and an accent in a room, it's no wonder designers love it so much. The perfect shade awaits you.


B.C. Real Estate News


B.C. economist says price of Metro Vancouver houses will keep climbing (Vancouver Sun)

Vancouver real estate shrugs off tax on foreign buyers as prices rise for 20th straight month (Financial Post)

Data show drop in B.C. foreign property buyers since targeted tax (The Globe and Mail)

Despite Vancouver's foreign buyer tax, it's proving to be a seller's market for townhomes (CBC News)


Building permit applications up 40% in Squamish (The Chief)


Fewer options for Greater Victoria homebuyers; prices strong (Times Colonist)

Home Sellers still in the Driver's Seat (Vancouver Island Real Estate Board)


Kelowna's unusual real estate market not expected to normalize any time soon (Info News)

Slump in Central Okanagan real estate sales (Capital News)


This communication is not intended to cause or induce breach of an existing agency agreement.

**Should you no longer wish to receive this communication, please reply to this email with "Unsubscribe" in the subject line.

©2016 Macdonald Realty Ltd. 2105 W 38th Ave, Vancouver, B.C. V6M 1R8 | macrealty.com