Rob H. and Cayla K. are couple living on London Ont. They both work full time and are looking to purchase their first home. Ideally, they would like to buy close to downtown London, since it’s close to the hospital where they both work. They also currently don’t own a vehicle, instead relying on public transportation or peddle power

They’re basically looking in the $300,000-range and qualified for a mortgage with 10 per cent down prior to the new rules. Unfortunately, they no longer qualify for this amount. The new amount forces Rob and Cayla to go outside of the downtown area of London and look elsewhere.

This means they would need a vehicle in order for work, or add roughly an hour of transit to their trip one way.

Realistically, the couple likely need to add a car payment to their ratios, which reduces the amount of financing in which they would qualify.  Their situation means they’ll stay renters until such a time that either the rules change, their incomes increase enough to re-qualify or they save more than the 10 per cent to try and decrease the required mortgage amount.