Canadians are growing more concerned about not being able to qualify for a mortgage, according to a new study by Zillow and Ipsos.
Respondents of the study said they were feeling pressured by the stricter mortgage regulations that went into effect in 2018. This included the stress test, which requires borrowers to qualify under a higher rate.
"The rule only applies to newly originated mortgages and is designed to prevent borrowers from taking on more debt than they can handle if interest rates go up," the study said.
Since the implementation of the new mortgage rules, buyers' worries heightened, with 51% saying they were concerned that the changes would prevent them from qualifying for a mortgage.
Furthermore, roughly 56% of Canadians saw qualifying for a mortgage as the biggest barrier to homeownership. The next most significant worry, as stated by 54% homebuyers, was whether they could afford monthly repayments.
"These mortgage regulations could impact a substantial portion of potential buyers, as the survey results show a large share of Canadian homeowners." the study said.
Younger homebuyers felt the weight of the mortgage rules the most, with 69% of those in the 18-34 age bracket saying they were concerned about getting approval under the stricter guidelines.