These intrest rate changes won't hurt a bit.

Its important for Kelowna Home Buyers to understand that when the minister of finance is talking about a bubble and trying to prevent the market from over heating, its major centres like Vancouver and Toronto that are driving these decisions. Kelowna Condo sales hardly reflect the speculative market we saw in 2003-2007. Okanagan real estate market is in a very balanced place right now.

The mortgage rule changes announced Monday by Financial Minister Jim Flaherty will weigh a bit on real estate speculators and heavily indebted people who want to fold
their high-rate credit card debt into a lower-rate mortgage. But for rank and file homebuyers, the changes will barely be perceptible when they take effect on April 19, 2010

“This should have a limited impact on what I see daily,” mortgage broker Peter Majthenyi said in an e-mail he fired off after Mr. Flaherty's announcement. “I believe it's more a message that ‘Big Brother' is watching and cares.”

Olympics aside, the favourite Canadian diversion of the moment is to debate whether there is a bubble in the housing market. Those most worried about the housing market plunging have urged Mr. Flaherty to raise the minimum down payment for a home and reduce the maximum payback period.

But the 35-year amortization, favourite of first-time buyers across this land, remains. So does the 5-per-cent down payment, which is heavily relied upon in high-cost cities like Vancouver, Calgary and Toronto.

All the measures announced by Mr. Flaherty affect mortgages covered by government-backed mortgage insurance, where the buyer puts less than 20 per cent down. The key change for typical home buyers is that, regardless of what term or type of mortgage they choose, they'll have to be able to afford the five-year rate.