CBC News and Current Affairs
Time: 22:00 EST
Network: CBC Television
PETER MANSBRIDGE (HOST):

Buying a home can cost a pretty penny, but soon some Canadians won't even need a penny up front for a house or condominium. Starting March the 1st, the Canada Mortgage and Housing Corporation says those who qualify can purchase their own place with no down payment. Ioanna Roumeliotis has the
details.

IOANNA ROUMELIOTIS (REPORTER):
Half a million dollars, that's the list price for this downtown Toronto home. It's steep, but if Jennifer MacLean doesn't have to come up with a 5 percent down payment on her own, suddenly it's not so steep.

JENNIFER MACLEAN: Something like this allows you to go in to the market for the first time and makes it more affordable.

IOANNA ROUMELIOTIS (REPORTER): Getting more qualified buyers within buying range is the idea behind the Canada Mortgage and Housing Corporation's new relaxed rule on down payments.

The federal housing agency says buyers who can prove they have a good credit rating and a good job don't have to save up the minimum 5 percent down.
They can take out a loan and borrow it.

WAYNE PROCTOR (CANADIAN MORTGAGE AND HOUSING CORPORATION): There was a certain segment of the market, people that had good incomes, good credit qualifications that the only thing missing for them to be able to get in to the housing market at this time was the down payment.

IOANNA ROUMELIOTIS (REPORTER): 400,000 people bought homes through Canada's main real estate listing service, M.L.S., last year. Most had the money for a down payment. But the people who haven't been able to save haven't been ignored. Most major banks and other mortgage insurers already offer cash back plans that provide buyers with the money for a down payment on a mortgage. The catch with those incentives is higher mortgage rates. The catch with the C.M.H.C.'s offer is > higher premiums on mortgage insurance.

JIM RAWSON (MORTGAGE BROKER): People still have to be able to afford to carry the additional debt. We're going to still have to be careful on qualification. It's not going to be for those who can't qualify for the financing.

IOANNA ROUMELIOTIS (REPORTER): It's why no one is expecting a huge surge in housing sales.

PIERRE BEAUCHAMP (CANADIAN REAL ESTATE ASSOCIATION): Obviously it's a plan that will favour certain individuals and will obviously act as a stimulant. Will it have an incredible impact? We don't believe so.

IOANNA ROUMELIOTIS (REPORTER): But being mortgaged to the hilt, even with a good salary, isn't always a good idea.

DAWNA SATOV (REAL ESTATE AGENT): Interest rates are just absolutely at an all-time low, and I hope people are also adding on at least 2 percent and saying: "Am I comfortable carrying it this point?" Because we don't want to see five years from now people not being able to carry.

IOANNA ROUMELIOTIS (REPORTER): MacLean knows that. It's why she says she'll think about it a little longer before putting in an offer. Ioanna Roumeliotis, CBC News, Toronto.

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