A Windsor mortgage agent believes new rules for home buyers with less than 20% down makes sense but it's going to cause some headaches in the short-term.
Ottawa announced a new stress test for mortgage buyers which ensures people are able to afford their home when rates go up in the future.
The changes take effect October 17th and it could mean people on the market with pre-approved mortgages would be able to borrow less than what they originally thought.
Dominion Lending Centre Mortgage Agent Mike Brain says people with less than 20% down on a house, should visit their lender.
"This is going to make a lot of people stressed out," says Brain. "People should go back to their lender and see a professional to see what they are pre-approved for in the new life after October 17th."
"Some of my clients who have pre-approved today $225,000 with 5%, they will only be able to afford $180,000 come October 17th."
Brain says this is good foresight by the government but the changes are taking place too soon.