Local Real Estate officials are pleased with actions taken by the Federal Finance Minister to try and discourage homeowners from taking on too much debt and crack down on speculators.
The President of the Realtors Association of Grey Bruce Owen Sound Karen Cox says the Finance Ministers actions were to prepare Canadians for rising interest rates expected later this year.
She says these regulations should help prevent people from taking on too much personal debt and risking losing their home if higher interest rates drive up their mortgage payments.
The Finance Minister says he wants to discourage people from using their homes as A-T-M’s.
He also announced the government will lower the amount that people can borrow on their homes, from the current 95 per cent of the value, to 90 per cent.
Jim Flaherty also is cracking down on speculators, requiring people to make a 20 per cent downpayment on homes they don’t plan to live in.
Karen Cox says that measure is specifically aimed at the multiple condo market.
She does not feel these measures will discourage people from purchasing a home here in Grey Bruce and in fact, will make them look a little harder at just what kind of a home they really can afford.
Cox says there is a lot of pent up demand in the local housing marked right now, as many people who sat on the sidelines during the economic downturn are now looking at buying.
She expects a lot of people also will try to beat the implementation of the HST July first by buying a home this Spring.