Changes to Canada's mortgage rules came as a shock to a Windsor mortgage agent, who says some homebuyers no longer qualify.

Two weeks ago, Ottawa announced there would be a stress test for all insured mortgage applications. The stress test will determine if a borrower can afford to pay back a loan if the rate increases.

"Usually the government gives us two months, six months to adapt to these new rules," said Michael Brain, a mortgage agent with Dominon Lending Centre.

"There was no time to think, it just happened."


Michael Brain is a mortgage agent with Dominion Lending Centres. (Stacey Janzer/CBC)

Anyone who wants to qualify for a loan under the new stress test, must qualify at a rate of 4.69 even though the rate today is 2.39.

"It's more precaution for people buying houses in this price range that they'll be able to afford it five years down the road," said Brain. 

This means some people who qualified for a mortgage just two weeks ago are no longer approved.

"So what we're seeing is people who were pre-approved or have sold their house prior to October 17 may not qualify for the house they were looking for simply two weeks ago," says Brain.

Changes were quick and sudden

Home buyers who now qualify for a mortgage are expected to buy a home they can afford for years to come.

"Right now we might be seeing people who are just at the brink of what they can afford and any small increase in rates is going to cause them to lose their home or to be financially stressed," says Brain.

With files from Stacey Janzer and The Canadian Press