Buying Your First Home is Now More Difficult

Buying a first home or taking out a loan against an existing residence will be more difficult for Canadians under new rules announced Thursday, but Finance Minister Jim Flaherty says it’s for their own good.

For the fourth time in as many years, the finance minister moved to tighten the mortgage and lending landscape — changes that mean up to five per cent of Canadians who might be considering buying a new home will likely no longer qualify.

This time Flaherty’s cutting the maximum amortization period for government insured homes to 25 years from the current 30 years, and limiting how much homeowners can borrow on the value of their homes to 80 per cent from 85 per cent.  Read More…

This article has 10 Comments

  1. Olson Land

    One good thing is that they will not be insuring homes > $1 Million. Finally! Step in the right direction, me thinks.

  2. Kevin

    I use to own a home for 15 years but when all is said and done it was more about impressing my neighbors and friends than it was about my happiness.

  3. Brennan

    I am still living with my parents so all this is greek to me :P, sorry!

  4. Camren

    We all want the white picket fence homes and a brand new car but i think its time we become more responsible.

    These new rules by the minister is about the government becoming more responsible. We can learn from them too.

  5. Denzel B.

    And this is how the real estate bubble burst begins.

  6. Jeremey Talmadge

    If Canadians have a hard time keeping up with credit card payments this new rule will put us in an even deeper hole. It’s a bad move by the Finance Minister.

  7. Jaquez

    But with many banks looking to capture your business i would think they would buffer the chances and eat any losses to get you to take a mortgage with them.

  8. Amari D

    I still dont see the fascination to buying when you can rent.

  9. Francesco I.

    The government needs to get out of our lives. Thank goodness Harper is cleaning house and making us free.

  10. Hans

    Wasnt the crisis in Greece averted and so shouldnt some positive trickle effect be coming our way too? This sounds like bad news. But hey i’m not a home owner and never care to be so Mr. Flaherty keep doing what you’re doing, its no skin off my teeth.

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