New home buying rules expected to take effect on October 17, which subject some purchasers to a financial stress test, aren't fair for everyone, says a Sudbury, Ont., mortgage specialist.

The federal changes, announced in Ottawa on October 3, dictate that insured mortgages with a down payment of less than 20 per cent of the purchase price will be subject to a stress test to determine if people can afford a mortgage if interest rates rise.

"It's going to have a huge impact on, especially first time home buyers. And really, anybody looking to sell their home as well. There will be less buyers being able to afford their house," said Wayne Martin, with Mortgage Alliance in Sudbury, a company that helps potential homeowners find a mortgage.

Wayne Martin

Wayne Martin is a team leader of Mortgage Alliance in Sudbury. (Markus Schwabe/CBC)

His concern is that "the majority of people are smart buyers so, with that, they're penalizing the people that are responsible."

"Statistics do show that most of the people that are extending themselves come from the larger markets, Toronto and Vancouver and they're penalizing all of Canada, nation-wide, for these smaller groups of regional areas," said Martin.

Under the new rules, borrowers will be tested against their ability to pay their mortgage if actual rates were as high as the big banks' five-year posted mortgage rates.