Canada’s new mortgage rules: What do the changes mean for homebuyers?

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A major shift in mortgage rules announced by the federal government this week will drive up rates for consumers and cut competition in the lending sector, say some in the industry.

Mortgage expert Robert McLister says Ottawa is cracking the housing market with a “sledgehammer.”

He predicts consumers will bear the brunt of the blow and that housing prices will tumble because a “sizable minority” of first-time and high-ratio buyers will no longer qualify for the mortgage amount they want.

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