The president of the Yukon Real Estate Association says the Yukon Housing Corp. has made a good move in making it easier for first-time home buyers to purchase a house, but he'd like to see the financing limit rise even more.

'At $195,000, you're still limited,' Mike Racz said in an interview Monday.

Yukon Housing announced the financing limit will climb from $175,000 to $195,000 for first-time home buyers.

Smaller homes have recently sold for between $200,000 and $210,000, said Racz. He'd ideally like to see the financing limit taken off or have it increased to at least around $220,000.

Racz praised another change by Yukon Housing which will allow home owners to pay their loans off over a maximum of 30 years rather than 25.

That could mean lower monthly payments for those who opt to pay it over the longer period, said Racz.

Finally, a new interest rate has been introduced for Yukon Housing's first mortgage and owner-build clients. The new rate will be one per cent less than the average of the five major banks' five-year rates.

Previously, to qualify for a $150,000-mortgage with an interest rate of 5.5 per cent paid over 25 years, clients needed an annual income of $42,772 and paid $916 a month on the mortgage.

The changes will mean clients can access the same $150,000-mortgage, with interest at 4.5 per cent, paid over 30 years if they have an income of $36,800. The monthly payment would be $756.

The changes were prompted by the growing Yukon real estate market, said Jim Kenyon, minister responsible for the Yukon Housing Corp.

'As the real estate market grows and home prices increase, we must assess these market impacts in relation to our programs,' said Yukon Housing board chair Rudy Couture.

'By making these adjustments to the interest rate, amortization period and allowable mortgage maximum, a family who would not otherwise be eligible for financing will now be better able to purchase their first home.'

Racz has noticed the market slowing down a bit since the summer season.

'The problem right now is supply,' he said.

Many prospective home buyers are waiting for the type of home or location they want to open up in the market before they buy, said Racz.