In mid-January, Finance Minister Jim Flaherty announced new mortgage rules that would be put in place to help stop rising debt levels among Canadians, and to keep another mortgage meltdown from occurring.
These rules, three of them in total, are another measure the government has put in place to tighten the rules for people getting mortgages. In 2010, stronger rules were put in place, and this adds to that.
The first new rule was that the maximum amortization period would be reduced from 35 years to 30 years for all government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. Read More…
It’s been a long time coming. I welcome these new rules. This kind of Canadian debt was briefly discussed in a little known documentary called Housing Ties.
We need to take better control and seeing as how the general public cant be trusted with that it is a welcome sight to see the government stepping in.
I’m proud to be Canadian.
35 to 30 huh? Intersting. I will have to make a call to my financial advisor about this.
I am going to be applying for a loan at the end of the week and its good to know this stuff. thanks.
@cookie – over time your paying rent will be less efficient than buying a home. Its just burning money.
I still rent! Still see no point in buying a home.
Thank you government of Canada!
@brian, you make a good point. Assuming you are a responsible payer of your monthly mortgage payments then these rules might actually stifle the growing economy.
I am a new homeowner and am glad i was able to get a home mortgage before these rules were adopted. I wouldnt be able to now.
This is clearly an attempt to prevent what is still happening in the states from ever happening in here.
Now if the states can be as bold.
Not sure what to make of these new regulations.
More rules mean less opportunities for hard earning Canadians to find better deals for housing.