Scott Peckford

Jim Flaherty changed the mortgage rules on April 19. The changes were designed to prevent Canadians from piling on too much debt.

Most of the changes will have a minor impact on the overall housing market.

In Kelowna the change is going to impact first time buyers who have been relying heavily on rental income to qualify for our expensive homes.

Rent is going to have to increase by 400% once the new rules take effect April 19. At least that is how it looks when you do the math. Flaherty announced changes to Mortgage Rules February 16 and one of the rule changes has to do with rental income.
Rental Income is being recalculated. Under the old system we could deduct $800 of rent for every $1000 of rental income. Under the new system we can only deduct approximately $200 per $1000 dollars of rent.