A real estate sold sign is shown outside a house in Vancouver, Tuesday, Jan.3, 2017. The Canadian Real Estate Association says home sales climbed 2.2 per in December compared with November as they recovered from a dip following the introduction of new mortgage rules. THE CANADIAN PRESS/Jonathan Hayward

Strict mortgage rules slow B.C. home sales

BC Real Estate Association says sales dropped nearly six per cent last month

February was a slow month for B.C. real estate, with sales dropping nearly six per cent compared to the same month last year.

In a new release Wednesday, the BC Real Estate Association said despite housing prices being up 8.8 per cent, sales were down 5.7 per cent.

More stringent mortgage qualification rules for conventional borrowers are dampening housing demand in the province,” said chief economist Cameron Muir.

“Since the new rules came into effect, B.C. home sales have fallen more than 26 per cent, on a seasonally adjusted basis.”

The average residential home price across the province was $748,327.

The new rules mean all borrowers must qualify for a mortgage based on either the five-year benchmark rate or their lender’s actual rate plus two per cent, whichever is higher.

The change applies to all mortgages, new or renewed, even if the down payment exceeds 20 per cent.



Like us on Facebook and follow us on Twitter.

Just Posted

Arson charge laid in Surrey Hockey Shop fire

The blaze destroyed the prominent business in Surrey City Centre

Surrey’s Khanvict set to perform at Junos-related Let’s Hear It! LIVE fest

Two-day outdoor event in Vancouver held in advance of awards show, at Rogers Arena on March 25

Historic farm time travels to 1900

Demonstrations to show life in Surrey

Cloverdale’s Bambi Hall weighs in on women in the world of wrestling

Local wrestler is seeing more women get involved in the traditionally male sport

Choices Lottery home located in White Rock

The 3,672 square-foot, three-level home, located at 1502 Bishop Road, has ocean views.

VIDEO: Surrey girls donate hair, give hope through Wigs for Kids

Emotional event at Coyote Creek Elementary saw 10 girls donate locks to those with cancer

Most people in B.C. too ‘lazy,’ ‘apathetic’ to prepare for disasters: poll

Less than half of those surveyed aren’t insured for earthquakes and wildfires

Chris Hemsworth goes surfing in Tofino

The Australian actor donned a full body wetsuit to catch some waves on Vancouver Island this weekend

B.C. hospitals receive boost for dental surgery

Disabled people needing general anesthetic wait too long, Adrian Dix says

BCHL Today: Wenatchee Wild on the ropes and Smoke Eaters reeling

BCHL Today is a (near) daily look at what’s going on around the league and the junior A world.

Sanford helps Bears win 16th CIS title

Cole Sanford has an assist in final as Alberta beats St. Francis Xavier 4-2 for national title

5 to start your day

Kinder Morgan protests heat up, a horse rescued from a muddy field and more

Georgia Viaduct to shut down for the JUNOs red carpet

Awards take place March 25 at Rogers Arena

A frustrated Trump lashes out at special counsel Mueller

In a series of weekend tweets naming Mueller for the first time, Trump criticized the investigation into Russian interference in the 2016 presidential election

Most Read