HELOC Changes Confirmed - What's the impact so far on today's market?

By Natasha on Oct 12, 2012

Over the last couple months, I’ve been talking a lot about the mortgage rule changes that both Jim Flaherty and OSFI introduced.  Inevitably, this was going to affect the housing market.

The Change: Effective September 4th, 2012 - the maximum loan-to-value for HELOC's is 65% down from 80%.

It’s simple economics: 

The rules would filter out (or at least sideline) buyers that:

  • Carried higher debt ratios,
  • Could not afford the payment that came with a 25 (instead of 30) year amortization or…
  • Did not have the credit to qualify at the benchmark rate. 

Supply for the most part stays the same, demand falls and so suddenly the seller either has to drop price (hasn’t happened yet), stay listed longer or pull the listing. 

According to an article published on September 24th by CTV News, first-time buyers are most affected.  Here are some interesting findings:

  • Sales are down in ¾ of the housing market, coast to coast.
  • Buyer fatigue, high household debt and economic uncertainty have heightened awareness of the new rules and are leaving buyers reluctant.
  • Prices appear to be holding steady
  • Economists forecast a correction of 10-25 percent over the next couple years.


These rules were introduced to protect Canadians (and the Canadian economy) from recessional vulnerabilities.  Call it tough love, but I [believe] it’s going to work!  These rules are enforcing responsible buying, better financial management and mandatory planning. 

As your mortgage professional, this is where we thrive.  My job isn’t just about getting you the right mortgage, but also about how to successfully qualify and manage this obligation throughout the application process and to term.  Let’s start building you a strategy for your next mortgage, renewal, renovation or overall financial health.

Thinking of your Refinancing or Debt Consolidation Options?  Or are you seeking access to cheaper funds for investment?  The HELOC may still be the way to go and there are methods of obtaining a HELOC up to 80% LTV!  Contact me today on if you qualify: 403-667-2978 or via email:


Article written by my broker: Tim Lacroix (Thank you Tim!) 

Call Natasha Shaw today!

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Calgary, Alberta T2M 3Y7
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