There is absolutely no doubt in saying that Vancouver is one of the most beautiful cities in the World. The diversity of its terrains is something that pleases everyone’s soul. And also trust us when we say that you’ll never fall short of options when it comes to having a delightful meal, as the cultural diversity in the city provides for a great platter for food lovers.
However, Vancouver is also listed as one of the most expensive cities in the World. The high cost of living and high taxation is often the topic of discussion among the residents and property experts. The federal policies have resulted in increasing the supply and decreasing the demand for houses in Vancouver.
Looking at the trends, home buyers preferred to invest far from the main city. Cities like Surrey (23%), Port Coquitlam (5.9%), Langley (8%), Maple Ridge (6.5%) for more affordable housing options. Chilliwack, Mission and Maple Ridge are the areas where one can find housing cost to be much less than other parts of Vancouver.
The average house cost in Chilliwack is around $550 thousand while in the Vancouver-East and Vancouver-West is greater than $1.5 million and $3.2 million respectively.
Federal Government policies have adapted and evolved and so not stay stagnant. In a recent update from Canada’s Minister Of Finance, Bill Morneau, announced an update on mortgage stress test
Today, Minister of Finance, Bill Morneau, announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the “stress test.” These changes will come into effect on April 6, 2020. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.
For many middle class Canadians, their home is the most important investment they will make in their lifetime. Our government has a responsibility to ensure that investment is protected and to support a stable housing market. The government will continue to monitor the housing market and make changes as appropriate. Reviewing the stress test ensures it is responsive to market conditions.
The outcomes of this policy are yet to be seen. But we know for the fact that whoever comes to Vancouver would love to stay here.
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