All of you need to contact your local national elected representative. This is absolute madness. Where in the world does a 20% equity buyer need to qualify for roughly double the negotiated interest rate.
Where is the risk here?
The point of large down payments on real estate is to avoid the draconian borrowing policies of an uninsured sub 20% mortgage down-payment. What is the incentive here for people to bother saving at all? This is moronic and will result in qualified buyers being shut out of the market. Additionally, what message are we giving our citizens? Rent for life! Stop this in its tracks, this is very bad for Canada.