Private real estate investors benefited from tighter mortgage standards: study
1 year, 2 months ago

Private real estate investors benefited from tighter mortgage standards: study

NL Times  

Private real estate investors have benefited greatly from tighter mortgage debt limits for homebuyers, as a portion of house seekers could no longer buy properties and had to rent in the free sector housing instead. By 2018, a household earning twice the modal income could allocate only 24 percent of its gross income to mortgage costs, a decrease from 36.8 percent in 2008. The study also reveals that under current lending standards, 25 percent of renters in the free sector cannot afford to buy a similar home to their rental home. According to the CPB, relaxing mortgage standards will not benefit first-time homebuyers, as it would mainly drive up house prices without increasing the housing supply.

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