I’ve been asked this question quite a lot recently.

Buyer Origins

Many local agents have also been wondering just how wide-spread the impact of the new mortgage rules will be.  It seems that in Whistler, the impact will be relatively 

So it is local, first-time buyers who are most likely to be affected.   However, how many of our local buyers are first time buyers?  This data is not readily available.  Many of our local buyers are moving within the market, like selling their townhome and buying a single family home, or selling their single family home, buying a lot and building on it.  Some are buying rental investment properties or own a local business and buying to provide much needed staff housing.  Our in-house mortgage brokers estimate that approximately 10% - 15% of current Whistler buyers are first time buyers.minor.  In the 3rd quarter of 2016, 26% of the buyers were from Whistler.  The remaining 74% of the buyers were from Vancouver, other parts of BC, the rest of Canada, the US and a hand-full of overseas buyers.   The regional buyers typically put 25% (or more) as their down-payment and therefore are not affected by the new mortgage rules.  The US and overseas buyers are typically required to put 35% down and likewise are not affected by the new mortgage rules.

According to the Spring 2015 report by Mortgage Professionals Canada (formerly the Canadian Association of Accredited Mortgage Professionals), 59% of 1st time buyers borrowed 80% or more for their 1st purchase.   Now these buyers would need to take out an insured mortgage and qualify for the 4.64% posted 5 year rate.  If you previously qualified for a $300,000 mortgage, you may now only qualify for a $235,000 mortgage under the new rules.

I think the new mortgage rules are targeting the wrong group – hasn’t all the media recently been about making it more affordable for 1st time buyers, not more difficult?