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“With rates likely to remain low for some time, the recent tightening in mortgage rules will help to cool credit growth and the housing market.”

Finance Minister Jim Flaherty announced in July that the maximum amortization period for government insured mortgages would be reduced to 25 years from 30 years.

Using an interest rate of 3%, Ottawa estimated it would increase monthly payments by $184 on a $350,000 mortgage, but save the borrower $33,052 in interest over the life of the loan.

It was the fourth time Flaherty tightened mortgage requirements in four years, but the measure was regarded as the one likely to be the most effective.

The BMO poll found that 22% of respondents are less likely to buy a new home in the next five years because of the changes, while 29% said they would spend less on a home as a result of the new rules.

Homes sales have slowed significantly in the months since the latest rule change, while prices are steady.

The latest report from the Canadian Real Estate Association found that home sales in September fell 15.1% from a year ago. But the national average home price was up 1.1% to $355,777 in September from a year earlier.

Among those looking to buy in the next five years, one in five say they plan to downsize to a smaller home, while the same amount say they’d upgrade to a larger home. And 10% said they plan to sell their home and move into a rental property, retirement home or in with family members.

Homeowners who responded to the BMO poll expect prices to rise by 2% over the next year, though many respondents in Vancouver indicated they expected prices there to fall.